Since I have not really been doing alot of breeding and selling rabbits up until now I was wondering if anyone could suggest where I should research information on starting a hobby ranch business? I know I would have to contact my state for a sellers permit but what else do I need to consider and do?

First, don't be applying for any permits until you are rally sure you want to do this!!! Once you have ANY state or federal permit, guess who will be in f your face over and over again?

Check with your extension office-- they should have concise information related to what you wish to do, and contact information that can get you even more accurate ideas on what would be involved...
find peole thatare already doing similar things in your area-- they canoffer hints as to how to work around different roadblocks, and may know where the loopholes are...

I asked mt tax person .a few years ago she said if it was less than 500 dollars sales i had no taxes too pay its considred a hobby like photography.

CurleySue-- I'd be looking for a new tax consultant-- real quick! ALL income is taxable--Where taxes are concerned, profit, expenses, where something gets put on the tax return,, and a host of other little pin pricks of worries is the dish of the day. So many people get told that
"less than 500 dollars" thing about SOOO many aspects of taz record keeping, it keeps Tax attorneys very busy dealing with audits related to 'hobbies" Just remember, the Dollarhites did not have tax worries-- and they put every aspect of their business, showing less than 200 dollars of clear profit, on their tax return. Taxes and regulations concerning businesses, ranches/farms, and 'hobbies' are really oil and water.

Yep, I would check very carefully when it comes to taxes and talk directly to the IRS when you have a question as to whether an item is taxable or not.