PDA

View Full Version : licensing


mowforyourmoney
02-27-2006, 05:14 PM
ok does it really matter if your business is licesenced to get comercial accounts do they check to see if you're legit the reason i'm asking is cuz i'm a minor and i think my 'rents would have to get the license under their name and they are convinced that woud jack up their taxes ne advice would be greatly appriciated

LwnmwrMan22
02-27-2006, 05:36 PM
ok does it really matter if your business is licesenced to get comercial accounts do they check to see if you're legit the reason i'm asking is cuz i'm a minor and i think my 'rents would have to get the license under their name and they are convinced that woud jack up their taxes ne advice would be greatly appriciated

I've been doing commercials for 16 years. My business only has a sales tax license. I have none with the local city, county, township, state.

I do have an EIN with the IRS, and a state tax number, but that's it.

CLARK LAWN
02-27-2006, 05:50 PM
your a minor so it doesn't really matter you cant sign a contract so dont bother with commercial and you need a tax id # to get insurance. and as for your parents taxes you wont be making a whole lot for the first couple years and after you deduct expenses and yes you will have expenses you may even be operating at a lower tax bracket.

grassman1
02-27-2006, 05:54 PM
Can't you get insurance as a sole proprietor? I'm assuming that as a SP you don't need a tax ID#. Don't you just file taxes with your personal income with a schedule C form?

LwnmwrMan22
02-27-2006, 05:56 PM
your a minor so it doesn't really matter you cant sign a contract so dont bother with commercial and you need a tax id # to get insurance. and as for your parents taxes you wont be making a whole lot for the first couple years and after you deduct expenses and yes you will have expenses you may even be operating at a lower tax bracket.

Don't listen to the people about signing the contract.

I've never had a contract, other than the 2 Wal-Marts I do.

If the place has a contract, you'll probably run it past your dad. Basically it'll be set up as your parents owning the business and you're an employee. That's the way I started.

My first account was a commercial account, along with 50% of the accounts I had my first year.

I've never believed in contracts and I've never been screwed by someone because I didn't have a contract.

I will agree with Clark Lawn though that your parents will want to talk about it with an accountant, because they will be in a lower tax bracket, until your business starts making money, at which time, if you're still going to do the business and not go to college, you can purchase the business from them, or talk to the accountant again, since you'll probably depreciate equipment, and figure out the best way to hand the business over to you.

At which time, they should be able to still sell it to you at a loss, so they're going to have very minimal tax increase, if not a decrease.

Runner
02-28-2006, 02:04 PM
Don't even worry about the commercial stuff, kid. There is too much other stuff to be had. As far as someone with a contract, and "running it by your dad", for you to work, it isn't going to happen. Anyone who would do this would have to be totally ignorant of labor laws (then why would they even diCUSS a contract), or they would just have to be plain stupid. Either way it is illegal, illegal, and oh yea...it's illegal. These labor laws are set in place for good reason. It saves a whole lot of injuries and lawsuits. NO company can hire a minor to run power equipment, for any commercial purposes. NO BODY...This includes the "family" clauses that get around the hourly rules for agricultural purposes. There have been some real good threads on here in the past for these things.

daveintoledo
02-28-2006, 02:30 PM
Don't listen to the people about signing the contract.

I've never had a contract, other than the 2 Wal-Marts I do.

If the place has a contract, you'll probably run it past your dad. Basically it'll be set up as your parents owning the business and you're an employee. That's the way I started.

My first account was a commercial account, along with 50% of the accounts I had my first year.

I've never believed in contracts and I've never been screwed by someone because I didn't have a contract.

I will agree with Clark Lawn though that your parents will want to talk about it with an accountant, because they will be in a lower tax bracket, until your business starts making money, at which time, if you're still going to do the business and not go to college, you can purchase the business from them, or talk to the accountant again, since you'll probably depreciate equipment, and figure out the best way to hand the business over to you.

At which time, they should be able to still sell it to you at a loss, so they're going to have very minimal tax increase, if not a decrease.

this is a bunch of crap.... no walmart in the U.S. is haveing there property maintained without a contract....anyone with any knowledge knows this to be misinformation.....

listen to runner, he is very experienced and understantds the laws, and like most good businessmen, doesnt break the laws either...

in life, and business your either legal or a crook.... its up to you how you want to be viewed in the industry by your customers and peers, a crook , or a honest business person..... good luck

daveintoledo
02-28-2006, 02:38 PM
just because a license isnt need in one area is wrong to think that its not needed in others, it varies form state to state, and within the state, from city to city and county to county..... many places you need a vendors license in every county you work in..... and some states require you to collect sales tax, some dont.... please check with your state and local authorities....and in most cases, you have to be an adult to get licensed...

daveintoledo
02-28-2006, 02:41 PM
ok does it really matter if your business is licesenced to get comercial accounts do they check to see if you're legit the reason i'm asking is cuz i'm a minor and i think my 'rents would have to get the license under their name and they are convinced that woud jack up their taxes ne advice would be greatly appriciated

if your parents are claiming you as a deduction, and you can bet they are, then if you make too much and have to file.., they will loose there tax break... and probably loose more money then you have earned....

im pretty sure this is right, if im not, please someone jump in and correct, me, taxes are not my best subject....

LwnmwrMan22
02-28-2006, 04:26 PM
this is a bunch of crap.... no walmart in the U.S. is haveing there property maintained without a contract....anyone with any knowledge knows this to be misinformation.....

listen to runner, he is very experienced and understantds the laws, and like most good businessmen, doesnt break the laws either...

in life, and business your either legal or a crook.... its up to you how you want to be viewed in the industry by your customers and peers, a crook , or a honest business person..... good luck

dave - you might want to re-read my post.

I said "I don't have any contracts, except for the 2 Wal-Marts that I do", did I not??

As far as labor laws, what you're telling me, is all of these mom and pop operations, whether it's LCO, gas stations, farms, machine shops, welding shops, whatever you can think of, every single one of them is running ONLY legal residents with OF AGE employees????

There isn't going to be any one from the labor department busting down his' parents door insisting they see a birth certificate and making absolute sure that the kid is 18.

Every kid that's under 18, you don't think the parents are running it as a tax break for themselves??? Give me a break....

LwnmwrMan22
02-28-2006, 05:31 PM
dave - you might want to re-read my post.

I said "I don't have any contracts, except for the 2 Wal-Marts that I do", did I not??

As far as labor laws, what you're telling me, is all of these mom and pop operations, whether it's LCO, gas stations, farms, machine shops, welding shops, whatever you can think of, every single one of them is running ONLY legal residents with OF AGE employees????

There isn't going to be any one from the labor department busting down his' parents door insisting they see a birth certificate and making absolute sure that the kid is 18.

Every kid that's under 18, you don't think the parents are running it as a tax break for themselves??? Give me a break....


Now don't get me wrong either. I'm not advocating breaking the law. But if my son, who's 4 now, wants to start mowing with me when he's 13-14-15, and since he's been around the equipment since he was born, I'd much rather have him with me than someone that's 18+, that looks at the mower and says "WOOOHWIE, can't wait to rip across the yard on this thing."

I didn't mean the kid's dad would cut him a paycheck, nor did I mean that the kid should search out commercial work, bring home 40 contracts for his dad to sign, and start mownig away.

I meant if he's in the gas station, filling up with gas, and the owner / manager says "hey, how much to mow my grass?", he shouldn't just automatically say "oh, I can't, you're a commercial business".

My biggest point was that not every commercial places requires you to have a contract.

As for labor laws, why do you think farm kids get the reputation that they're such good workers?? It's because they've had to since day one. Get up before school, milk / feed. More chores when you get home. Once you're 13, 14, 15, you're out in the field running a tractor.

All the kids on here that are just starting out under age, make sure you only work 20 hours / week, and not before 8 am or after 6 pm on school nights.

seacoastlandscape
02-28-2006, 05:46 PM
My advice would be don't even bother with any commercial accounts at all until you are ready to start your business full time, I know this from bad experiences. I started in the same exact boat you are and I am now 22 and running a legit business while in school. About 2 months ago I got a call from the state and got audited, it wasn't fun. The reason of the audit is 1 month before I registered and got a tax id number I started servicing a commercial property. Well that business got audited and found an invoice for services under my business name in which I did not charge tax. Believe me you do not want to deal with headaches like being audited as a young kid trying to make some money on the side.

stevesmowing
02-28-2006, 08:05 PM
as long as you are filed with the county clerk and you are paying your taxes it's fine.

befnme
02-28-2006, 09:09 PM
[QUOTE=seacoastlandscape= Well that business got audited and found an invoice for services under my business name in which I did not charge tax. Believe me you do not want to deal with headaches like being audited as a young kid trying to make some money on the side.[/QUOTE]

somethin dont sound right here. you dont charge tax on a service related business .even if you sold them a " product " like fert. of landscape supplies you still do not have to charge tax because the things you sold them you installed .now on the otherhand if you have a landscape supply store and sell someone a bag of fert. then you have to charge sales tax .

LwnmwrMan22
02-28-2006, 09:38 PM
somethin dont sound right here. you dont charge tax on a service related business .even if you sold them a " product " like fert. of landscape supplies you still do not have to charge tax because the things you sold them you installed .now on the otherhand if you have a landscape supply store and sell someone a bag of fert. then you have to charge sales tax .

You'd better look at your own state's tax laws.

You have to charge sales tax on any service related to lawn mowing / landscaping in Minnesota.

You DON'T have to charge it on anything related to snowplowing, ice control, OR firewood.

befnme
02-28-2006, 10:02 PM
You'd better look at your own state's tax laws.

You have to charge sales tax on any service related to lawn mowing / landscaping in Minnesota.

You DON'T have to charge it on anything related to snowplowing, ice control, OR firewood.

in nc you dont charge sales tax. iam tellin ya what i better not have to because i have never charged sales tax in this business. i have been with h&r block for 6 years and have never been audited .they do my quaterly taxes and they are by the letter of the law .i pay the extra money every year for the " peice of mind " policy they sell so if they screw up its on them.

mowforyourmoney
02-28-2006, 10:17 PM
umm technically i'm not suppose to do commercial accounts but i sure as heck aint waiting two years to get in on the big bucks i've got friends who've said they can 'hook me up' THANK YOU for alll the replies

LwnmwrMan22
02-28-2006, 10:46 PM
in nc you dont charge sales tax. iam tellin ya what i better not have to because i have never charged sales tax in this business. i have been with h&r block for 6 years and have never been audited .they do my quaterly taxes and they are by the letter of the law .i pay the extra money every year for the " peice of mind " policy they sell so if they screw up its on them.


You're right, but you better keep an eye on the sales tax.... looks like people have been trying to get you to have to collect it for a while now....

http://www.newsobserver.com/102/story/393580.html

befnme
02-28-2006, 11:11 PM
You're right, but you better keep an eye on the sales tax.... looks like people have been trying to get you to have to collect it for a while now....

http://www.newsobserver.com/102/story/393580.html


quote fayobserver "Expansion of the sales tax to cover services." they might get it one day just not right now...:waving:

CLARK LAWN
03-01-2006, 12:00 AM
umm technically i'm not suppose to do commercial accounts but i sure as heck aint waiting two years to get in on the big bucks i've got friends who've said they can 'hook me up' THANK YOU for alll the replies
umm then technically don't do them because when you screw up and get caught its going to cost you alot more than you made and as for the "big bucks" take a minute and read up on here commercial is so competitive thats it is not big bucks i personally only have a few and thats fine with me. but i also see your 16 so you know everything about business and lawn maintenance from you vast years of experience so go ahead and go get them all with no license or insurance cause you know more than anyone on here