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View Full Version : Ny LCO ?'ss Tax Id and Liability


Kleen Cut
04-25-2007, 09:25 PM
Well im just looking for some insight. Does anyone here operate in ny, I was wondering if I needed a tax id number, I went on the IRS site from what I can gather I dont think I do, but Im not a pro, been wrong before, Will be again. What does the state require, Im just mowing and trimming no pesticides or anything so, I know I dont need a permit for that, and as of right know I only have 2 accounts, So not looking like Im gonna get rich, but this is more for something to do after my regular job anyway. I just got an Insurance qoute of 462 a year for 100/300 liability with a 500 deductable and 100,000 worth of tools, is this about average.

Thanks for your insight


:usflag:

HVC
05-06-2007, 06:38 PM
In NYS you need a certificate of authority to collect sales tax. If you want to open a business checking account you will also need a Federal Employer ID number. If you are a sole proprietor and plan on doing business under an assumed name then you must register a DBA with the county where you live or where your office is. A DBA basicaly registers you as the official owner of a specific company name such as Green Lawn Care. A bank uses the DBA to associate your legal name and social security number with the assumed name you provided.

A federal employer id number is free and can be obtained over the phone. In most cases your sales tax number will be the same as your federal id, that is if you register with the IRS first. There is a space for your FEIN on the NYS Sales Tax registration form.

You must also pay income tax and self employment tax on your extra income. Self employment tax is basicaly your Social Security. Since you work full time, you have social security tax withheld from your paycheck each week. Your employer matches that amount each week. As a sole proprieter you have to pay your own social security and match it. Some good news though is that you can deduct the amount you matched LOL.

Death and Taxes!

You can of course do business under your legal name and avoid the DBA altogether for now until your business grows.

Insurance is important and be careful if your side business is similar to your main employment. If you cause a liability, then the plaintiff may try to connect your main employer to your side business!

Schedule C, Mileage reports... OMG who said being in business was easy!

prosperity
05-06-2007, 08:14 PM
HVC summed that up nicely.

About the insurance - sounds like it might be Erie as that is very close to what I am paying.....but....are you sure it is 100K on equipment, or 10K?

Kleen Cut
05-06-2007, 10:06 PM
ey Thanks for the info guys, yeah I made a typo that coverage is for 10k on equipment.

Thanks