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View Full Version : before starting a business i have some questions


TCZellars
03-07-2008, 04:14 PM
Looking to start a lawn service/plowing sometime soon. First, i got a quote from a friend for a total of 1900 a year for 1mil liability, equipment, and full auto insurance including collision, im not worried about paying this but lets say i make 10,000 this year cutting, how much of that is taken for ss, state taxes, federal and every other tax that im probably forgetting, if they end up taking 40% of everything i make, then it wouldnt even be worth it to go legal yet. If you have any personal examples you can use or ones you can make it that would be great. Also what licenses permits do i need for just doing lawn maitenence, no pesticides?
any input would help

enviouslawns
03-07-2008, 04:22 PM
Since its your first year you prolly wont have to pay anything because youll have to buy alot of stuff. for example when i did my taxes a few weeks ago i lost about 15,000. with all the advertising i did, truck payment, paying off equiptment, and so on. so i would say go for it.

lawnpro724
03-07-2008, 04:28 PM
Are you just looking to start part time while working another job? If you are then taxes wouldn't be that bad since your working and their already taking out taxes. Being self employed you are required to pay the minimum tax for being self employed even if you don't make much but the tax taken out of you payroll check from your job should offset a good portion of it. Save all your receipts from gas, equipment and anything else you can right off at tax time. If you don't go legal with insurance and proper licenses you will be limited in the kind of jobs you can do and how much money you will make. Almost every business will require insurance proof before accepting a bid from you.

GreenN'Clean
03-07-2008, 05:02 PM
This seems like a bad year to try to start a lawn care business with the economy shot to hell like it is.... Best of luck to you

capnsac
03-07-2008, 05:38 PM
This seems like a bad year to try to start a lawn care business with the economy shot to hell like it is.... Best of luck to you

I like the optimism... :hammerhead: :)

TCZellars
03-07-2008, 05:41 PM
what type of permits/licenses would i need?

Roger
03-07-2008, 07:57 PM
Are you just looking to start part time while working another job? If you are then taxes wouldn't be that bad since your working and their already taking out taxes. Being self employed you are required to pay the minimum tax for being self employed even if you don't make much but the tax taken out of you payroll check from your job should offset a good portion of it. ...

These statements are very confusing. Just because another employer is withholding money for taxes doesn't relieve any of the tax burden. Nothing changes, the money is still owed.

This is a syndrome that so many people have fallen prey. If employers didn't withhold taxes from paychecks, and everybody had to show up at an office in their municipality every Monday morning to pay taxes, our country would have tax reform in no time flat. The system has lured workers into thinking that the money is being paid out of somebody else's pocket. That money the employer is withholding is YOUR money, money that is being sent to the taxing agencies on your behalf in payment of taxes you owe. The fact that each person is NOT shelling out $20s, $50s across a counter each week to pay those taxes is the politician's best weapon against changes in the tax system.

Bottom line: If the new business is expected to generate taxable income, then estimated quarterly payments can be made to cover the additional taxes, or changes to the employer's withholding can be made to cover the added anticipated tax burden. If the gap between owed taxes and paid taxes is too great, a penalty and interest will be assessed.

GreenN'Clean
03-07-2008, 08:29 PM
I like the optimism... :hammerhead: :)

LOL Id rather the guy knows what hes going to be getting into before he jumps head over heels and knee deep into debt with the way things are going to look for this year......

Mike2212
03-13-2008, 04:05 PM
Here is a list (http://startinglawncarebusiness.com/lawn%20care%20business%20license.htm) of licenses you may need.

Ditto what some of the guys here have said. Don't buy equipment before you have the sales. It may mean turning down sales in the beginning, but your cash flow will be a lot better.