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BenHeadrick
02-04-2009, 10:44 PM
I thought I'd post my story here and see if anyone had any tips or advice. Any productive input is greatly appreciated, and I thank you in advance. My Brother-in-law and I are trying to start our own part-time lawn care business. We already have a good number of yards to start out with. We will be mowing a chain of about 13 service stations, and we've already picked up 2 more residential yards as soon as mowing season starts. We both work full time jobs so we wont be picking up very many more quite yet. I've got a bit of experience mowing, just never owned my own "business." We already have most of our equipment. Since most of the service stations will be mostly weed-eating, between the two of us, we have 3 weed-eaters. We bought a used 48" hydro-drive walk behind off of craigslist. He has a personal truck, and we have access to a trailer. Other than legal stuff, we're good to go. I've been on the TN websites for the past week reading about LLC's and taxes. Blah! I have a few main concerns I'd like to run by you guys.

Are we okay using personal vehicles and a trailer w/no tags to haul our equipment around, or do we really need to register everything commercially?

We're splitting all the costs down the middle until we can fund the costs with income, from what I can tell, my best bet is to get a license as an LLC and operate as a partnership. Is that what you would do?

Is there anyone in TN that could fill me in a little bit about how I have to pay the business taxes in this state? Do I need to pay sales tax too? If so do I need to pay taxes in each county we mow in, or just in knoxville where their main office is that will be paying us?

For such a small operation, would you suggest going about this on a smaller scale?

Thanks again guys for any help!
-Ben

DLAWNS
02-04-2009, 10:55 PM
I thought I'd post my story here and see if anyone had any tips or advice. Any productive input is greatly appreciated, and I thank you in advance. My Brother-in-law and I are trying to start our own part-time lawn care business. We already have a good number of yards to start out with. We will be mowing a chain of about 13 service stations, and we've already picked up 2 more residential yards as soon as mowing season starts. We both work full time jobs so we wont be picking up very many more quite yet. I've got a bit of experience mowing, just never owned my own "business." We already have most of our equipment. Since most of the service stations will be mostly weed-eating, between the two of us, we have 3 weed-eaters. We bought a used 48" hydro-drive walk behind off of craigslist. He has a personal truck, and we have access to a trailer. Other than legal stuff, we're good to go. I've been on the TN websites for the past week reading about LLC's and taxes. Blah! I have a few main concerns I'd like to run by you guys.

Are we okay using personal vehicles and a trailer w/no tags to haul our equipment around, or do we really need to register everything commercially?

We're splitting all the costs down the middle until we can fund the costs with income, from what I can tell, my best bet is to get a license as an LLC and operate as a partnership. Is that what you would do?

Is there anyone in TN that could fill me in a little bit about how I have to pay the business taxes in this state? Do I need to pay sales tax too? If so do I need to pay taxes in each county we mow in, or just in knoxville where their main office is that will be paying us?

For such a small operation, would you suggest going about this on a smaller scale?

Thanks again guys for any help!
-Ben

I would say that you should definitely register things commercially. I would think that operating as a partnership would be an okay bet, but I would also recommend that you talk with an accountant as they might be able to point you in the right direction with this as well as with your tax question. Hope this helps a bit and welcome to the site.

BenHeadrick
02-04-2009, 11:04 PM
Thanks for the reply. I also forgot to mention that we plan to get basic business liability insurance once we get the paperwork done. I don't want to have to buy a window for a new Mercedes when I throw a rock through it. I'd say finding an accountant is on my list of things to do. Like I said, my brother-in-law and I both work full time jobs, so it probably wont be time feasible to do EVERYTHING ourselves.

DLAWNS
02-04-2009, 11:17 PM
Our accountant cleared up a lot for us as there is so many different tax laws and they're always changing them. My wife handles most of it but our accountant is a very important piece of the puzzle. Good luck with everything.