Thinking about starting out legal...

[crazyboy]

I'm thinking about starting some lawn maintenance. Now I want to do this legal, so I'm taking the time to do some research. I know an llc would be best but isn't needed. But as far as insurance goes how much am i looking at? I don't want to get too deep into this before I have some customers, but I also don't want to start advertising for a company that I didnt even make, and make legal yet?

[AJ Lawnscapes]

The definition of Legal is on a state by state basis.

In NJ you need to have a Business ID Number (https://www.state.nj.us/treasury/revenue/dcr/reg/sos_dcrnew01.prod.htm), which is tied to my Federal ID Number (http://www.irs.gov/businesses/small/article/0,,id=102767,00.html)

Once that is done, you are a "Business". If you want Sole Proprietor, LLC, S Corp, etc. is up to you.

Then next thing is that you want to contact an Insurance Broker. He will negotiate with Insurance Agencies, and Agents to find you the best deal to cover your business.

You will want at less a $1mil Agg policy. Wether you want Workers Comp, or your vehicles covered is something you'll have to work out in your buisness plan, and speak with your Broker about.

Hope this helps,

Abe

[crazyboy]

The definition of Legal is on a state by state basis.

In NJ you need to have a Business ID Number (https://www.state.nj.us/treasury/revenue/dcr/reg/sos_dcrnew01.prod.htm), which is tied to my Federal ID Number (http://www.irs.gov/businesses/small/article/0,,id=102767,00.html)

Once that is done, you are a "Business". If you want Sole Proprietor, LLC, S Corp, etc. is up to you.

Then next thing is that you want to contact an Insurance Broker. He will negotiate with Insurance Agencies, and Agents to find you the best deal to cover your business.

You will want at less a $1mil Agg policy. Wether you want Workers Comp, or your vehicles covered is something you'll have to work out in your buisness plan, and speak with your Broker about.

Hope this helps,

Abe


Thank you I greatly appreciate it. Just want to have some general insurance coverage in case I fudge up something :(, will upgrade to the additional things when the company grows. If someone doesn't mind I would like to know an approx of what your paying for similar coverage. Now I have to make my grass look good to show off my skill :cool2:, need to get it to fill in. Time to fix the sprinklers, aerate, seed, and hope it comes out damn good:laugh:

[crazyboy]

Another question I had was about taxes. I know this isn't the best place to ask, but id like to get atleast a general idea. Since I'm providing a service not any goods would I need to collect taxes from the customers? Also, to pay taxes for an income, I'm guessing I can just do that when I file my taxes, what about if I get an LLC? Do I have to pay quaterlys?

[topsites]

Another question I had was about taxes. I know this isn't the best place to ask, but id like to get atleast a general idea. Since I'm providing a service not any goods would I need to collect taxes from the customers? Also, to pay taxes for an income, I'm guessing I can just do that when I file my taxes, what about if I get an LLC? Do I have to pay quaterlys?

Some states charge taxes on a service, others do not, you'll have to find out if yours does...
You can likely ask most any clerk, or on the Web site.

As a sole proprietor LLC you no longer have to pay taxes quarterly,
however I highly recommend using Software such as Turbo Tax and at least
for the first few years I would get an accountant.

[lawnproslawncare]

For you a good start for insurance price is going to be $400-700 a yr. Not going to include a vehicle on the plan though. You'll want to list the vehicle your going to use under business use on you current insurance.

[jason9696]

O/T I know, but just wanted to compliment lawnpro on your website. Very professional, and organized.

[shade tree landscaping]

NJ you do need to collect sales tax on mowings, clean-ups, ect.

[crazyboy]

Thanks everyone.

[lawnproslawncare]

hey jason thanks for the complement. I put it together and now I'm working on a new design, i just am not sure how I want to lay it out.

[C&K]

Before you jump into LLC I highly recommend that you talk to an accountant. With an LLC you will have to file F/E tax form which has a minimum fee to file. Plus you will be paying the accountant more to get your taxes done. The LLC does help to protect your private assets but it can be argued that if you carry a min. 1 million in Gen. Liability Ins. You should be covered enough.

I'm not saying that you should not become a LLC. We are an LLC. but I am saying do your homework before you jump in.

Talk to an attorney. (They will recommend LLC. due to their experience with law suits)

Talk to an accountant. ( They will tell you it's a pain and costs you more every year)

After you discuss it with both of them you will be able to answer 99% of your questions.

[crazyboy]

Thanks guys. I would def start out as sole for atleast the first season to feel it out. Upon some research I would need to be NJ Home Improvement Contractor in order to be a landscaper, or so it looks. I want to be able to put down mulch but thats about it on the landscaping side of it, mostly cutting grass. So, anyone know about the NJHIC?