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View Full Version : Who is fully legit?


Slcareco
04-03-2008, 07:07 PM
Who has:


Home Improvement License
EIN
Business Certificate
Insurance
Pays
Taxes

How does badly does it effect your yearly net income?

Carolina Cuts
04-03-2008, 07:36 PM
* Home Improvement License - huh?
* EIN - whats that mean? :) I'm terrible with abbr.
* Business Certificate - yes.
* Insurance - yes.
* Pays - pays what? payroll?
* Taxes - ugh, yes.


How does badly does it effect your yearly net income?

ya mean as far as being a cash biz vs. legit?

obviously, it effects it greatly.

flattoplawncare
04-03-2008, 07:39 PM
I Am :waving:
Just finished up with my accountant, ahhhhh what a great feeling it is to be legit. My accountant saved me sooooo much money this year. It is better to be legit, It does not make much sense not to be.

IA_James
04-03-2008, 07:44 PM
You may be better off talking to your lawyer or accountant on what all you need. It varies quite a bit from state to state.

bas122286
04-03-2008, 08:26 PM
EIN is your federal tax id # Carolina. This would really fall under paying taxes so... Anyway I am also fully legit and proud of it.


Brian:cool2:

PerfectEarth
04-03-2008, 08:33 PM
I am.

Insured
LLC with KY
Registered with Louisville Metro for taxes AND truck sticker for over 10,000#
DOT compilant w/all files.
Drug Tested
Class "A" Driver
Licensed Applicator
Monthly accounting- EVERYTHING.
Quarterly taxes- again, everything accounted for. EIN, KY account#, Lou. Metro #

Everything was a PAIN but worth it. It feels good to be legit, and honestly, I frown on the guys who are not. The costs are considerable but customers understand- cause they know you are doing it the right way and they have hired someone they can be confident in.

DA Quality Lawn & YS
04-03-2008, 08:41 PM
Who has:


Home Improvement License
EIN
Business Certificate
Insurance
Pays
Taxes

How does badly does it effect your yearly net income?

Per above, very loaded question with so many LCO's on here with such different operations and all living in different states. Be prepared for a rainbow of answers.

Albery's Lawn & Tractor
04-03-2008, 08:46 PM
Here the county will not give a bus liscense to a LCO. Why I don't know. I am registered with the state as a DBA, fully insured, & pay taxes.

pjslawncare/landscap
04-03-2008, 08:54 PM
Well, The IRS loves me, my insurance agent loves me even more and we dont need any "home improvement" license. Oh yea, I have my EIN.
Of coarse it effects income, but I sleep well at nite.

Slcareco
04-03-2008, 08:59 PM
Here the county will not give a bus liscense to a LCO. Why I don't know. I am registered with the state as a DBA, fully insured, & pay taxes.

Now with a DBA you have liablity correct as opposed to LLC or Corp were you have no liability??

06HD BOSS
04-03-2008, 09:03 PM
Who has:


Home Improvement License
EIN
Business Certificate
Insurance
Pays
Taxes

How does badly does it effect your yearly net income?
Yes to all the above.

Its a good chunk of change yearly, to be legit.

I set everything up myself, just researched what i needed and did it. No lawyer or accountant fees for me.

Albery's Lawn & Tractor
04-03-2008, 09:08 PM
Correct, but I am going to switch to a LLC soon.

Mimowerman
04-03-2008, 09:20 PM
yes sir.... fully legit, however no applicators licence....



working on that , but I don't currently apply !! Got Ya!

Carolina Cuts
04-03-2008, 09:34 PM
EIN is your federal tax id # Carolina. This would really fall under paying taxes so... Anyway I am also fully legit and proud of it.

oh right right right...
no, I'm sole Prop... DBA using my SS.... but will be switching to LLC soon.
In this area, any service has to have a license to work in any town, basically, every zipcode requires a permit to work in. IT SUCKS! South Carolina is robbin' the blue collar man... and taken a little piece of the pie.
example.... Longs SC, Little River SC, Myrtle Beach, North Myrtle Beach, Conway... all contained within 20 square miles.... each town requires a yearly permit to work.... thieves!

Slcareco
04-03-2008, 09:53 PM
Yes to all the above.

Its a good chunk of change yearly, to be legit.

I set everything up myself, just researched what i needed and did it. No lawyer or accountant fees for me.

Whats a large chunk? It comes out monthly or yearly? What are ways to lessen it?

J.A.G LAWNCARE
04-04-2008, 12:52 PM
:walking:doing it the right way in Ohio , but the lco that dont are killing me. the charge 100 a month , that means $106.25 for me to charge with sales tax so a $200 yard the price people see is $ 12.50 MORE to pay me .....but in the long run my ss. will be more when i am done with mowing in 30 years lmao
:weightlifter::weightlifter::weightlifter::weightlifter::weightlifter::weightlifter:

daveintoledo
04-04-2008, 01:29 PM
get legal or get the hell out

Coopster81
04-04-2008, 01:38 PM
LLC ....... Design certified.....landscape technichian certified........insurance........pay quartely sales taxes.....

daveintoledo
04-04-2008, 01:57 PM
LLC ....... Design certified.....landscape technichian certified........insurance........pay quartely sales taxes.....

so what is with the sales tax, mine is due in july and january, i know others who pay by the quarter like you..... any idea why mine is only by the half......

J.A.G LAWNCARE
04-04-2008, 02:03 PM
so what is with the sales tax, mine is due in july and january, i know others who pay by the quarter like you..... any idea why mine is only by the half......

Dave in Ohio it is based on how much sales tax you collect more you collect the more often you send it in:weightlifter::weightlifter:

daveintoledo
04-04-2008, 02:14 PM
Dave in Ohio it is based on how much sales tax you collect more you collect the more often you send it in:weightlifter::weightlifter:

thats fine, id rather keep it in my account as long as i can anyway, i wonder what the breakdown by price is....i may have to look into that this year as we have grown alot in the last two year and have not heard anything from the state as to any changes...

maybe i should just leave well enough alone and wait till they tell me i have to file quarterly?

J.A.G LAWNCARE
04-04-2008, 02:18 PM
Dave make sure you get your discount .0000000000000 something for all the hard work collecting it and sending it in to them.

lawnpro724
04-04-2008, 03:14 PM
Home improvement license ??? Don't need one of those here. I have everything else though, did you forget workers comp?

Big C
04-04-2008, 03:16 PM
I am also

*Business License-yes
*Insurance-yes
*Federal Tax I.D.#-yes
*LLC-yes
*Pay taxes-yes

CLARK LAWN
04-04-2008, 03:20 PM
thats fine, id rather keep it in my account as long as i can anyway, i wonder what the breakdown by price is....i may have to look into that this year as we have grown alot in the last two year and have not heard anything from the state as to any changes...

maybe i should just leave well enough alone and wait till they tell me i have to file quarterly?

they will send you a letter when they want it more frequently. they just switched mine starting at the first of the year i went from jan a7 july to monthly, acually much easier to pay monthly not so big of a hit to the bank account.

lawnpro724
04-04-2008, 03:22 PM
Now with a DBA you have liablity correct as opposed to LLC or Corp were you have no liability??

Wrong, LLC stand for limited liability which is better than sole proprietor but you will still be liable under LLC.

Paulup
04-04-2008, 04:19 PM
You are not personally liable under LLC, as in, if you catch someone's house on fire, they can't sue you personally and take your home and savings, only what the business has.

Here is a breakdown on liability.

LLC:

Liability Protection. As a member of an LLC, you can take actions that bind the LLC (for example, contracting with an outside vendor to deliver a hundred jelly doughnuts to the office every day for a year) and not be held personally liable for the action. Your personal assets are separate from the business' assets, and therefore safe, more or less to the degree that the assets of a corporation's owner are safe. (You are, however, responsible to the other members of the LLC for your actions. If they think you've acted frivolously or with disregard for the interests of the company, you might find yourself in an awkward situation.)

Sole Proprietor:

As the sole owner of the business and its assets, you're personally and completely responsible -- that is, legally liable -- for the actions of the business. A legal settlement against you could cost you the business' assets and your personal ones as well. In fact, legally, there's no difference between the two.

Paulup
04-04-2008, 04:21 PM
Also, another benefit of an LLC is that you do not have to pay double taxes, all earnings are passed on to the "members" of the LLC, and you only have to pay personal income tax.

SpikeGT
04-04-2008, 04:26 PM
they will send you a letter when they want it more frequently. they just switched mine starting at the first of the year i went from jan a7 july to monthly, acually much easier to pay monthly not so big of a hit to the bank account.

Same here. They switched me from Jan.- July to monthly. I like monthly much better.

Slcareco
04-04-2008, 06:19 PM
What about LLC compared to Corporation?? Anyone a corporation or if not why?? thanks!

davis45
04-04-2008, 06:30 PM
Fully insured, workers comp, pest. license, pay taxes, FEIN, everything legal.

Lost a bid on a church today. I lowballed and priced at $80 for a 3 acre property. Winner has no insurance, does not pay taxes, and won it at $25.

Put in a bid for a park, was a full day job if done by myself. I'm guessing a good 9-9.5 hours. Winning bid was $80.

mattfromNY
04-04-2008, 06:35 PM
Corporation
Liability to $2M
Liability umbrella to $1M
WC to $1M (myself, as well as employees)
Commercial truck insurance to $1M
DOT compliant
Licensed commercial pesticide applicator.

lawnpro724
04-04-2008, 07:25 PM
Fully insured, workers comp, pest. license, pay taxes, FEIN, everything legal.

Lost a bid on a church today. I lowballed and priced at $80 for a 3 acre property. Winner has no insurance, does not pay taxes, and won it at $25.

Put in a bid for a park, was a full day job if done by myself. I'm guessing a good 9-9.5 hours. Winning bid was $80.

Where in IL are you? Who is doing work that cheap? I hope they stay where your at.

davis45
04-04-2008, 10:08 PM
Where in IL are you? Who is doing work that cheap? I hope they stay where your at.


Yea seriously, i wish you could take these people to effingham. haha. All my work is around Mattoon.

lawnpro724
04-04-2008, 10:15 PM
Yea seriously, i wish you could take these people to effingham. haha. All my work is around Mattoon.

I do a little work there from time to time. How are things going for you this season? How long have you been in business?

tamadrummer
04-04-2008, 10:43 PM
You are not personally liable under LLC, as in, if you catch someone's house on fire, they can't sue you personally and take your home and savings, only what the business has.

Here is a breakdown on liability.

LLC:

Liability Protection. As a member of an LLC, you can take actions that bind the LLC (for example, contracting with an outside vendor to deliver a hundred jelly doughnuts to the office every day for a year) and not be held personally liable for the action. Your personal assets are separate from the business' assets, and therefore safe, more or less to the degree that the assets of a corporation's owner are safe. (You are, however, responsible to the other members of the LLC for your actions. If they think you've acted frivolously or with disregard for the interests of the company, you might find yourself in an awkward situation.)

Sole Proprietor:

As the sole owner of the business and its assets, you're personally and completely responsible -- that is, legally liable -- for the actions of the business. A legal settlement against you could cost you the business' assets and your personal ones as well. In fact, legally, there's no difference between the two.

You are wrong that you cannot be sued personally if you are an LLC. If you are the operator of your equipment when the incident happens, you are at fault and so not only will your company be sued but since you are the operator of the equipment, you too will be sued.

Unless you are going LLC or S-Corp for tax purposes and you are a Sole Prop. don't bother trying to protect yourself in vein.

If you have an employee, then all bets are off as long as you were not the operator that caused the accident.

To answer the OP: Yes, I am legal.

EIN: No, don't need it I am an SP so I use my SSN and file schd. C with my taxes.

Liability ins: yes 3 mil ag.
Workers comp: Exempted by the state
Commercial inland marine theft as well. No need to let someone steal my business and not be able to recover.

pinto n mwr
04-04-2008, 11:00 PM
legal so far but gas prices will probably put me non-legal... j/k

Fully legal from day 1

Slcareco
04-04-2008, 11:24 PM
Corporation
Liability to $2M
Liability umbrella to $1M
WC to $1M (myself, as well as employees)
Commercial truck insurance to $1M
DOT compliant
Licensed commercial pesticide applicator.

Hey what is the main benefits of being a CORP over a LLC? Also whats the deal with giving out stocks?

davis45
04-05-2008, 03:28 AM
I do a little work there from time to time. How are things going for you this season? How long have you been in business?


I'll send you a PM

ALC-GregH
04-05-2008, 10:33 AM
I'm signing up on Monday for my DBA and stuff. I looked around for a name that isn't taken and found one. I originally had thoughts to call it Premier Lawn Care (note my screen name) but decided to change it. I hope I'm doing the right thing by doing this. I'm more nervous now then ever before. I can't wait any longer to do this. I'm limited on funds so I need to cheap out on flyers and other stuff. I sure hope I can make this work. I'll be going door to door to get started and try to gain a relationship with the locals in my area. With alittle luck and some hard work, I should be able to get flyers made and later run a ad in the paper as well as other form of advertising.

k-man
04-05-2008, 01:27 PM
Got my EIN for fedral, business name filed with state, fully insured. I'm licensed as a fert app through the state. Soon testing for pesticide app license. To ligit to quit

ALC-GregH
04-06-2008, 09:38 AM
Why bother if you can't do it the right way?

Being legit means you need to manage the business correctly. Managing the overhead is the key. The rest will follow.

B Stove
04-06-2008, 10:57 AM
Who has:


Home Improvement License
EIN
Business Certificate
Insurance
Pays
Taxes

How does badly does it effect your yearly net income?

3rd year in the biz, and YES I am to legit to quit!!!!!!:weightlifter:

GreenthumbGA
04-06-2008, 10:06 PM
The goverment does not have snoopers out there looking for every lowballer that doesn't report their earning. This allows some to ride in the shadows and take from those who are paying to play. Good thing is, these individuals can only go so far. This is where the men are seperated from the boys. You can copy someones homework, cheat on the tests, but when it comes to the real world, your just a hustler riding on someone elses dime. Only a matter of time before you reap what you sow. Pay now play later.....do it right the first time, and you don't have to do it again. Create a habit of doing the hard things when the losers are finding a way around it. Sweat, bleed, pay your taxes, mentor the willing, correct the foolish, and above all......go fishin every chance you get.

milkie62
04-07-2008, 12:25 AM
How can anyone work with there own equipment for $80.00 a day ???????