Business License, to get or not go get

[Jdmtnbikr]

Ok I will keep it simple...

I am starting off part time, a few accounts a week (2-4) gardening maintenance. How important is it to get a business license? I am leaning more towards insurance first then the license. The reason I am saying this is I have "heard" from a few sources that unless you are BIG, you don't really "need" to get a license.

I don't know what to think. Do any of you operate without one? (may be hard to get honest answers on this I know)

[mikefromny]

do it! get legit , consunmer affairs , permits , insurance , collection of sales tax , FEIN + EIN do it legit man youll be suprised how much it wil really push u to get more customers and hustle , just my 2 cents

[QualityLawnCare4u]

I operated fine without a biz license for 7 years and then like a dummy thought it would look more professional. The tax accessors have hounded the h-ll out of me all year wanting to tax everything I own down to a gas can! The tax accessor even told me that next year to say "Im no longer in biz" since I am such a small an operation, told me if we dont know about you we cant tax you, but when you applied for a biz license we knew you existed! Now insurance I would HIGHLY recommend, especially after I cut a large gas line last year trimming shrubbery, do I have to say what a Nighmare that could have been. I had insurance the next day after that! Also if you are going to be a big operation then the biz license would be recommened. I live in a small red neck community but your area may require it so check your laws first. For me next year no biz license!

[rfed32]

i would get it....it is better in the long run

[drsogr]

I didn't know that not getting one was an option? I wonder why the lawn care industry is looked down upon.

[29 Palms Property Management]

Wow, this is news to me.

I operated fine without a biz license for 7 years...
You never had a client ask if you were legit or not?
No one asked if you were licensed?
You didn't have any commercial accounts I assume. Right?

[QualityLawnCare4u]

Wow, this is news to me.


You never had a client ask if you were legit or not?
No one asked if you were licensed?
You didn't have any commercial accounts I assume. Right?

Nope, not one ever asked, commercial or residentual, and yes I have commercial accounts. I just felt like it would be more professional to have it. In my area all they care about is cheap, dont care what you drive,use,mow with, insurance or anything. I did not say it was not a good idea though, I was trying to seperate myself from the s--bs. Im just not big enough to justify the cost.

[bubb1]

Doesn't one have to have a license in order to get liability insurance, or can you insure under your own name?

[Team Gopher]

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Hi Jdmtnbikr,

I think it is best to to get it. Why not start off on the right foot!

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[daveintoledo]

why would you want to run an illegal operation, it said in your profile you have been i businesst hree years...

as a small operation, i have no problems with the tax man, i am taxed on what i make, thats it..... i do have to collect state sales tax, but i also get a number so i dint have to PAY sales tax on many items.....and being in a real business, you also get may deductins,...its hard to explain to your accountant all the money you spent on supplies and maintenence when you are not a legal business...

besides how is it an expence, my licence from the state was 55 bucks

just a bad move... maybe you wont get cought... but these are public forums... anyone can read... will your competition turn you in... you can bet if your hurting there income they will check and make sure your legel... i would, and then id burn my competition by just turning them in.... and solicite all there former customers to get with a real company:)

[kc2006]

I'm with Dave, its best to do it. I went with an LLC which was 125 and the service vendors lisence (needed in ohio to collect sales tax) was 25 dollars.

Little price to pay instead of having the IRS knocking on your door after a competitor turns you in.

[Jdmtnbikr]

just a bad move... maybe you wont get cought... but these are public forums... anyone can read... will your competition turn you in... you can bet if your hurting there income they will check and make sure your legel... i would, and then id burn my competition by just turning them in.... and solicite all there former customers to get with a real company:)

Ok first of all, hypothetically, you have NO idea who I am, where my business is specifically located, the name of my business etc etc..so you could never turn me in. That is one thing I honestly don't understand about these forums. Why do guys have their business names out there for all to see? And location? I can't really think of any advantages this has at all to be honest. Your competition may be on this very site, they can size you up, read about your "problems or issues", take note of advice you may give, how you bid, etc etc etc. You see where I am going with this....

That said, I agree with you. I think the best move would be to get the license, and that's what I intend on doing :)

[Jdmtnbikr]

Ahh wait, let me edit that somewhat....

After re-reading your response I am thinking you meant if you were one of my competitors HERE and found out through a customer that I was not licensed you would turn me in. That makes sense. I orginally thought you meant turning me in based on knowledge on this website. My apologies.

I still don't understand why guys offer up so much information/specifics about their businesses. Don't get me wrong, I love these forums, very informative...I just don't get it.

[The Cowboy]

I operated fine without a biz license for 7 years and then like a dummy thought it would look more professional. The tax accessors have hounded the h-ll out of me all year wanting to tax everything I own down to a gas can! The tax accessor even told me that next year to say "Im no longer in biz" since I am such a small an operation, told me if we dont know about you we cant tax you, but when you applied for a biz license we knew you existed! Now insurance I would HIGHLY recommend, especially after I cut a large gas line last year trimming shrubbery, do I have to say what a Nighmare that could have been. I had insurance the next day after that! Also if you are going to be a big operation then the biz license would be recommened. I live in a small red neck community but your area may require it so check your laws first. For me next year no biz license!

I admire your courage. If your tax assessor thinks you should fly below radar, go ahead. But be VERY VERY careful. One slip and you are finished. I sometimes I think you could get in more trouble volunteering into the system, than if you stayed out. But that could be debated. Tax avoidance may be a good thing. Tax evasion isn't. If you don't become liable for it you don't owe it.
My best luck to you as you plan your business strategies.

[JB1]

believe it or not there are parts of the country where you don't need a business license, they just haven't got around to that tax yet.

[Carolina Cuts]

I don't have the 'license' accountant didn't recommend it either... being I'm sole proprietor. I do have insurance, as well as commercial insurance on the truck and trailer. I also have a license/permit to work in one particular town where I was stopped by an enforcement officer who asked me for my permit to do work in that town. It cost me $100 for the permit to avoid a $1100.00 fine... for ONE house in that town which brought me in a whopping $200.00... before paying for the permit.

[Jdmtnbikr]

I don't have the 'license' accountant didn't recommend it either... being I'm sole proprietor. I do have insurance, as well as commercial insurance on the truck and trailer. I also have a license/permit to work in one particular town where I was stopped by an enforcement officer who asked me for my permit to do work in that town. It cost me $100 for the permit to avoid a $1100.00 fine... for ONE house in that town which brought me in a whopping $200.00... before paying for the permit.

Isn't a business license and a "license/permit to work in a particular town" the same thing?

That is what confuses me. If my business license is only good for the city it is registered in than what is the point? I am sure most of you work in multiple cities/towns. This is not a shop, it is a *moving* business. Imagine if you covered 5-6 small cities? Do you need 5-6 business licenses?? Could get verrrrry expensive.

[Carolina Cuts]

wish I knew myself .. license/permits... whatever. This particular area has 4 different towns, one county. Each town requires a permit, all towns are 20 blocks long... hahaha!!! So I guess I should have to spend $100 in each town before I cross the street.

[QualityLawnCare4u]

I admire your courage. If your tax assessor thinks you should fly below radar, go ahead. But be VERY VERY careful. One slip and you are finished. I sometimes I think you could get in more trouble volunteering into the system, than if you stayed out. But that could be debated. Tax avoidance may be a good thing. Tax evasion isn't. If you don't become liable for it you don't owe it.
My best luck to you as you plan your business strategies.

I still think it is best to have them it just caused me a lot of problems with what they estimated my equipment at. Ten times what it was worth! The tax accessor revauated it and changed it to where I paid no taxes on it. My biz license are still 75 bucks though. I also report every penny to the IRS (dont want them on my azz). Every year my biz shows a total loss which is what gets me threw the winter with the nice refund.

[JB1]

How you show a total loss every year ?

[sheshovel]

Business licences here are a mere $40.00 to conduct business in this county..What's the big deal?
So if you get asked..you can say"Yes, I have a licence
to conduct business in this county".
Rather that face a fine if you do not and are turned in

[Jdmtnbikr]

Business licences here are a mere $40.00 to conduct business in this county..What's the big deal?
So if you get asked..you can say"Yes, I have a licence
to conduct business in this county".
Rather that face a fine if you do not and are turned in

Umm I don't know what "county" you live in, in California, but the city I live in the the Bay Area charges $100 for that CITY, not county per year. So you can see the dillemma of working in 4-5 local cities, if they all charge similar fees.

Can you request a county license instead of a city license? I am not entirely sure how that works.

[QualityLawnCare4u]

How you show a total loss every year ?

My accountant takes my income then my mileage and depreciates my equipment(along with any other deductions) and it shows a total loss, and I do not use a dishonest accountant. I tell him do not do anything that would throw up a flag, had rather lose the deduction than have the tax folks on my back. I dont live in a rich area and make big bucks at this like some folks on here do. Everything with me is on the up and up and I report every single penny including cash.

[tractrpowr45]

Umm, I'm not sure if I'm missing something, but I live in NY and I checked on NYS Dept. of Labor website and also my county website and neither says you need a business license for landscaping(just pesticide application). Man, what a breather, considering our state has the highest tax on many things. I'm getting a DBA, but I'm not getting a license unless I absolutely have to. Someone correct me on this if I'm wrong.:dizzy:

[daveintoledo]

just check with your state, city and county, some places its not required some it is.... it would be cool if things were more uniform hahhah its the government

[daveintoledo]

Ok first of all, hypothetically, you have NO idea who I am, where my business is specifically located, the name of my business etc etc..so you could never turn me in. That is one thing I honestly don't understand about these forums. Why do guys have their business names out there for all to see? And location? I can't really think of any advantages this has at all to be honest. Your competition may be on this very site, they can size you up, read about your "problems or issues", take note of advice you may give, how you bid, etc etc etc. You see where I am going with this....

That said, I agree with you. I think the best move would be to get the license, and that's what I intend on doing :)

i wouldnt turn anyone in personally but YOUR (your being no one in paticuloare, just a blanket statement)competition might.... and as far as the web goes, anyone who is computer savy (read, not me :blush: ) can get your ip address and some pretty personal information from what i understand.... :)

[The Cowboy]

i wouldnt turn anyone in personally but YOUR (your being no one in paticuloare, just a blanket statement)competition might.... and as far as the web goes, anyone who is computer savy (read, not me :blush: ) can get your ip address and some pretty personal information from what i understand.... :)

Some people are more computer savvy and IP addresses completely blocked from the rest of the world.
Anyone who posts controversial statements had better have his IP address blocked.;) ;) ;) ;) ;)

[nelnet]

My accountant takes my income then my mileage and depreciates my equipment(along with any other deductions) and it shows a total loss, and I do not use a dishonest accountant. I tell him do not do anything that would throw up a flag, had rather lose the deduction than have the tax folks on my back. I dont live in a rich area and make big bucks at this like some folks on here do. Everything with me is on the up and up and I report every single penny including cash.


I don't understand this. You don't make money at this? You lose money every year and stay with it?

[TJLANDS]

I still think it is best to have them it just caused me a lot of problems with what they estimated my equipment at. Ten times what it was worth! The tax accessor revauated it and changed it to where I paid no taxes on it. My biz license are still 75 bucks though. I also report every penny to the IRS (dont want them on my azz). Every year my biz shows a total loss which is what gets me threw the winter with the nice refund.
If you show a loss how do you get a refund? You do not have to pay estimated taxes if you show a loss the year before, or is this not your only job?

[Trinity Lawn Care, LLC]

I would say go legit from the start.

[allprogreens]

Our business is in the county and does not require a business license

However, if do any business in the city then, by law, we should have a license.

It helps to legitimize your business as a contractor instead of a fly-by-night operation.

Chris
All Pro Greens
Visit the "Contractor Section" of our website:
https://www.allprogreens.com/magazine/spring05-home.html


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