Pacific Northwest Accounting LLC

09/07/2026

A Bit of Trivia…….
Labor Day originated in New York and became a federal holiday in 1894.
It continues to be celebrated today and traditionally has come to be considered the end of summer in the United States.

09/06/2026

Question?
What are the three primary financial statements in a business?
Answer:
The three major reports are: the Income Statement which tracks revenue and expenses over time; the Balance Sheet which shows assets, liabilities, and equity at a specific point in time; and the Cash Flow Statement which tracks the actual movement of cash in and out of the business.
Getting your financial reports in order with a professional financial accountant is essential for any successful business. This month of September we are offering a one hour free consultation.

09/05/2026

Have a great holiday weekend!

09/04/2026

Benefits of a mini farm.

The pleasure of enjoying your animals and helping your community.

09/03/2026

The 3-Out-of-5-Years Rule
The primary guideline the IRS uses is a profitability test for a mini farm.
Hobby Farm: If an operation continually shows losses and fails the profit-test years, the IRS may reclassify it as a non-business hobby.

The 9 Factors Used by the IRS
If a farm does not meet the 3-year profit rule, the IRS evaluates the operation using nine specific factors to determine intent:

Manner of operation: Whether you keep accurate books, business records, and separate bank accounts.
Expertise: Whether you consult experts or study the business/economic side of farming.
Time and effort: How much time you invest in running the operation.
Asset appreciation: Expectation that the farm assets/land will increase in value to cover losses.
Success in similar activities: Past history of turning similar endeavors into profits.
Income and loss history: The amount of occasional profit, if any, and the scale of losses.
Financial status: Whether you have substantial income from other sources to fund the farm.
Elements of personal pleasure: Whether the activity provides recreation, social pleasure, or personal enjoyment.

09/02/2026

How many acres do you need to have a mini farm?

You need 1 to 5 acres of land to run a comfortable and functional mini farm.
Land Size and Uses
Under 1 acre: Good for a large home vegetable garden, a small chicken coop, and herbs.
1 to 3 acres: Ideal for a single person or small family to manage intensive market gardening, a small fruit orchard, and small animals like goats or sheep.
5 acres or more: Provides extra room for larger livestock (like a cow), pasture rotation, outbuildings, and natural wildlife buffers.

09/01/2026

Setting up a mini farm as a Limited Liability Company (LLC) in Washington state is fully permitted and follows the standard state procedures for business registration.Steps to Form a Mini Farm LLC in Washington Choose a Business Name: Pick a unique name ending in "Limited Liability Company," "LLC," or "L.L.C." Check availability using the Washington Secretary of State Corporations and Charities Filing System.
Appoint a Registered Agent: Designate an individual or business authorized to accept legal papers with a physical address in Washington state.
File Certificate of Formation: Submit your paperwork online ($200) or by mail ($180) through the Washington Secretary of State.
File your mandatory Initial Report within 120 days.
Get an EIN: Apply for a free federal Employer Identification Number (EIN) on the IRS Website to open business bank accounts.
Register for State Taxes and Licenses: Apply for a Washington business license through the Department of Revenue to manage state business and occupation (B&O) taxes.

08/31/2026

Key Considerations for Mini FarmsZoning and Local Rules: Check your local county or city zoning ordinances first. An LLC designation does not override local agricultural zoning, animal limits, or home-occupation rules for small parcels.Agricultural Licensing: Depending on what you sell (eggs, produce, processed goods, or nursery plants), you may need specific permits or a license from the Washington State Department of Agriculture.Asset Protection: Keep farm finances strictly separated from your personal accounts to maintain the liability shield of your LLC.

08/14/2026

Happy Friday from Pacific Northwest Accounting LLC

Do you know a business owner that could use help with their accounting needs? If yes, have them contact us for a free consultation.

08/13/2026

Do you need help getting your business's books in order? I know how overwhelming it can feel, but it's a great step towards financial clarity! We can help you get everything organized so you can focus on what you do best. Imagine the free time you'll have when your books are in order! Tax extensions are due October 15th, so let's make sure you're prepared for that. Contact us today to discuss how we can offer you a good solution to a common problem!
Pacific Northwest Accounting LLC

Accounting/Bookkeeping Services Pacific NW Accounting