Pet products & breeding
Books and taxes for licensed dog breeders.
A puppy deposit on Venmo, a stud fee from another breeder, an OFA hip certification, and an emergency C-section that changes the whole litter's numbers. Gus sorts all of it, an accountant checks every transaction, and you get one number a month.
- From $197 a month
- An accountant on every transaction
- Cancel whenever
March came in at $9,000. The emergency C-section on the spring litter ran high, so I booked it against that litter, not the whole month.
- Puppy balance, VenmoPuppy sales
- Stud fee receivedStud fee income
- Emergency vet, C-sectionVet care
- OFA hip certificationHealth testing
- AKC litter registrationRegistration fees
Why your books are different
A dog breeder's books go wrong in a handful of specific spots.
A generalist sees Venmo deposits and vet bills. Your business is litters, stud arrangements, and health testing that has to pay off across more than one breeding. When the books miss that, you cannot tell which pairing actually makes sense to repeat.
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1
Puppy deposits get counted as income too early
A family puts down a deposit on a puppy from a litter that has not been born yet, and if that deposit is booked as income the day it lands, the month looks stronger than it is before any puppy has actually gone home.
What we doHolds puppy deposits until the litter is delivered, then moves the full sale to income. -
2
Stud fees move like personal cash
A stud fee paid to or received from another breeder usually moves by Venmo or Zelle between two people, so it never gets booked as the business income or cost it actually is.
What we doBooks stud fees paid and received as their own line, separate from puppy sales. -
3
Health testing gets lumped into one vet bill
OFA hip and elbow certification, Embark or Wisdom Panel DNA testing, and routine vet care for breeding stock all land in one general vet bill, so it is hard to see what proving out a breeding pair actually costs before the first litter even sells.
What we doKeeps health testing separate from routine vet care, so the real cost of a breeding pair is visible. -
4
An emergency vet bill skews one litter's numbers
A C-section or a dam who needs extra care can cost thousands more than a routine whelping, and if that cost gets spread across the whole month instead of tied to the litter, no litter's real profit is ever clear.
What we doTies vet costs to the specific litter they belong to, so you know what each litter actually cost to bring into the world. -
5
A retained puppy is not a sale
Keeping a puppy back from a litter to grow the breeding program means one fewer sale from that litter, and if the books do not account for it, the litter looks like it underperformed instead of showing an investment in the next generation.
What we doFlags a retained puppy as a business asset, not a missing sale, so the litter's real numbers make sense.
Your categories
The categories Gus keeps for a licensed dog breeder.
Set up once for how the business gets paid and what it spends. You never pick a category. He does, and an accountant checks it.
Money in
- Puppy salesDeposits and final balances paid by Venmo, Zelle, or cash.
- Stud fee incomeFees received when your male is used by another breeder.
- Co-ownership splitsYour share of a litter bred under a co-ownership arrangement.
- Wholesale puppy salesLitters sold through a USDA-licensed broker or pet store account.
Money out
- Vet careProgesterone testing, ultrasounds, whelping, and routine care for breeding stock.
- Health testingOFA hip and elbow certification, Embark and Wisdom Panel DNA panels.
- Registration feesAKC litter and individual dog registration.
- Whelping suppliesWhelping box liners, heat lamps, and puppy formula.
- Breeding stock foodFood for dams, sires, and puppies before they go home.
- Stud fees paidFees paid to another breeder when using an outside stud.
- Show and trial feesEntry fees to prove out the line before breeding it.
- MarketingWebsite hosting, Instagram, and referral listings.
What we watch for you
- Cost per litter
Vet care, testing, and registration against what the litter sold for, so pricing is not a guess.
- Health testing cost
What proving out a pair costs before the first puppy sells, tracked against future litters.
- Stud fee balance
Fees owed or received on outside breedings, so nothing gets forgotten.
- The set-aside
What you will owe, tracked every month, so tax season is a number you already knew.
Ask Gus
Things dog breeders ask Gus.
Text him like you would text anybody. He answers in plain English, and when a question is above his pay grade, an accountant looks and gets back to you.
Not yet. I hold deposits until the puppy actually goes home, then it moves to income. That keeps a good booking month from looking better than it is.
I tie it to the litter. That way you can see what this specific litter actually cost, instead of it blending into a random month.
Usually not, since most vet clinics are corporations and skip the 1099 rule. Whether yours does depends on how the clinic is set up, so I flag it and the accountant checks.
The tax side
The tax side of a licensed dog breeder.
Most of what matters here is proving this is a business, not a hobby, and keeping litter costs clean enough to show it.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- Hobby loss rulesThe IRS can treat breeding as a hobby if it does not run or record itself like a business, which limits what losses can be deducted. Clean records of every litter's cost against its sale price are the best protection.
- Self-employment taxA breeder not on payroll owes 15.3 percent self-employment tax on top of income tax, paid in quarterly estimates due April 15, June 15, September 15, and January 15.
- USDA licensingBreeders who sell wholesale through brokers or pet stores, or who cross certain federal thresholds, may need a USDA license. The exact rule depends on how and where puppies are sold, so Gus flags it for the accountant.
- The pass-through deductionA profitable breeding business run as a sole proprietor, partnership, or S corp can often take up to 20 percent of business profit off taxable income.
Deductions licensed dog breeders miss
Your bookkeeper knows what to look for in your statements. You never have to.
- OFA and DNA health testing
- Whelping box and heat lamps
- Puppy formula and supplements
- AKC litter registration fees
- Microchips
- Show and trial entry fees
- Website and Instagram ads
- Breeding stock food
- Kennel or whelping room utilities
- Business liability insurance
- Travel to health testing appointments
- Puppy contracts and paperwork services
General information about 2026 federal rules, not advice for your business. Your accountant looks at your actual numbers before anything gets filed.
All year, not just April
A breeding year, kept every month.
Litters come on their own timeline, but the tax calendar does not move. Your team keeps you ahead of both. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.
- January
Plan the year
Last year's return gets started, and you get a monthly set-aside so April is already handled.
- April
Filed. Done.
Your return is filed and signed. No surprise bill, because the set-aside has been running since January.
- July
Halfway check
Where you stand, what you will owe, and how the spring litters compare to what you planned.
- October
Before the fall litters
Ahead of any fall breedings, Gus looks at health testing and equipment costs worth handling before year end.
What you get
What you pay depends on what your business needs, and it does not move after that, busy season or slow. No hourly bills, no surprise invoices, no setup fee.
Book a call- Monthly bookkeeping
Every transaction sorted into categories set up for licensed dog breeders. You never categorize a thing.
- An accountant checks every transaction
Real review, every month, before your books close. Not a spot check.
- Your business tax return, filed
Prepared, reviewed, and signed by that same accountant every year.
- The monthly number
What you made, what you spent, what to set aside for taxes.
- Your own bookkeeper
A real person assigned to your business, in the app whenever you need them. No hold music.
- On your books all year
Every month, not just in April. Your team speaks up whenever something is worth your attention.
- Cancel any time
No contract. No cancellation call. Your books are yours.
Straight answers
Questions dog breeders ask first.
How does Gus handle puppy deposits paid months before the litter is born?
He holds the deposit until the puppy actually goes home, then moves the full sale to income. That way a busy booking month does not look better than it really is.
I paid a stud fee to another breeder. Where does that show up?
It gets its own line, separate from puppy sales, so you can see what that outside breeding actually cost against what the litter brought in.
Does an emergency vet bill count against the whole month or just the litter?
Gus ties it to the specific litter, so you can see what that litter actually cost to bring into the world, instead of it dragging down a month that had nothing to do with it.
I keep a puppy back from every litter for my breeding program. Does that hurt my numbers?
No. Gus flags a retained puppy as an investment in the program, not a missed sale, so the litter's real numbers still make sense.
Am I running a business or a hobby in the IRS's eyes?
That depends on how consistently you record litter costs and sales and whether the operation is run to turn a profit. Clean books are the strongest evidence, and the accountant makes the final call.
My records are just a folder of vet receipts and Venmo screenshots. Can Gus start from there?
Yes. Send what you have and Gus will sort it by litter, tying each vet bill and Venmo payment to the pairing it belongs to. Most breeders see a clear picture within a cycle.
Is a real accountant checking my books?
Yes. You get your own bookkeeper, Gus does the first pass on every transaction, and an accountant checks every one before your month closes. That same accountant prepares, signs, and files your business return. Goatkeeper is not a CPA firm, and we never pretend a person looked when they did not.
What does it cost, and can I cancel?
It starts at $197 a month, depending on what your business needs. No setup fee, no hourly bills, no contract. Cancel any time from the app, and your books go with you.
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What makes a bookkeeper worth paying for Every business we keep books for
Book a call
Pick a time. That's the whole signup.
Fifteen minutes with a real person on our team. They look at where your books are, tell you straight what it takes to get caught up, and get you set up on the spot if it fits.
- $197 a month to start
- An accountant on every transaction
- Cancel whenever