Picked up a contract this year 50000/year 3 years. I had enough $ to buy the mower, trailer and already had the truck but if I had I would have been pretty low on cash. I financed 100% for three years, and kept my money in the bank. Bought a used Z turn for about a grand leas than what it was worth. Didn't get my first check for two months after paying for gas/ ins/ payroll, etc. found a truck on the side of the road for 1500 bought it and sold it in about a month for three grand. The interest on the mower/ trailer is probably going to cost about 1000 over three years. If I had payed cash I would have ran out of money waiting for a check and lost my a$$. I made 1500 off the truck and another 1000 off the mower just by buying it, and everything will be paid off when the contract is up. Also found a truck for 11,000, blue booked at 17,000 and financed it. just buying that truck made me 5,000 if i was to sell it 2,000 under blue book. So tell me financing is dumb. Always keep cash in the bank, you never know what kind of deal or problem may arise tomorrow.
Also did the 1099 thing first year I hired employees. The employees mom claimed him as a dependent and didn't get her refund so the IRS sent me paperwork saying that they could audit me for this any time over the next seven years. Found out that there are strict requirements on who can be labeled a sub and that a lot of people have been doing it illegally including me. I did everything by the book after that but was fearful of anything that came from the IRS for years. It's not worth the stress for the little bit you save. Just take out the taxes and make your life easier.