Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Closed Thread
 
Thread Tools Display Modes
  #41  
Old 09-16-2005, 03:19 PM
Soupy's Avatar
Soupy Soupy is offline
LawnSite Gold Member
 
Join Date: Mar 2002
Location: IL. (St Louis Metro)
Posts: 3,116
Quote:
Originally Posted by Sean Adams
Soupy - I know what you mean, but there is definitely a difference between someone earning a check where their taxes are already deducted for them versus a business owner who has the responsibility to report their earnings, as well as pay insurances, etc...

Whether there is confusion created by net and net/net in this particular scenario the true point is that with employees and normal operating expenses bobby is not "netting" 75% of his gross receipts - not legitimately at least.

I'm not calling bobby a criminal here - don't think that is what I'm doing. I'm just trying to make it clear to those who are scanning this board that it is unrealistic to think that they can generate $100,000 in sales and walk away with $75,000 of it in their pocket.
I agree with you, I was just trying to point out what I thought was Bobby's way of thinking.
__________________


I use Gopher Billing & Scheduling Software
Download your FREE fully functional 30-day
trial here.
  #42  
Old 09-16-2005, 03:29 PM
Sean Adams Sean Adams is offline
 
Join Date: Jun 1999
Location: Pennsylvania
Posts: 3,623
you actually understand bobby's way of thinking...that's a whole new site in itself....
  #43  
Old 09-16-2005, 04:13 PM
MarcSmith MarcSmith is offline
LawnSite Fanatic
 
Join Date: Jul 2004
Location: Washington DC
Posts: 7,242
Now to get back on the topic......

One year I threw a Party at my house for many of my clients. I had food, drinks(yes alchohol with bartender) I ended up droping about 2 grand on the shindig.....Best money I ever spent....

I basically had blank checks with many of the clients. I would give out $50 gift cards if anyone they refered signed up for a year long contract, again money well spent that was better than any door hanger or Yellow page ad.

I taught my clients how to use their irrigation systems properly (no charge), in most cases they let me program them to what was best for my schedule....Win-win. And you know, they did reciprocate at christmas time. I'd get gift cards or presents for my daughter....

Now the trash guys who come every week, they get something from me. I don't give squat to the postman, as he is GOV employee, and I see him sleeping on the side of the road in his van....Paperboy doesn't get anything either, buts that because he sends a card taped to the newspaper hinting at where giftcards could be sent to....

Now I don't have clients, but I have Union employees, I don't need to give the guys anything, but my harder workers who show the effort get a little something on side at christmas time sine I can't give them a raise....

You do what works for you. This is what I do and it works....
  #44  
Old 09-16-2005, 04:19 PM
bobbygedd bobbygedd is offline
LawnSite Fanatic
 
Join Date: Nov 2000
Location: NJ
Posts: 10,188
hold, hold it. i clearly stated my operating costs are 10 k, BEFORE PAYROLL. pay attention. if i gross 120k, deduct my 10 operating costs, that leaves 110k. minus 40 grand for payroll= a total of 50 grand. my taxable # is now 70k.
  #45  
Old 09-16-2005, 05:05 PM
Sean Adams Sean Adams is offline
 
Join Date: Jun 1999
Location: Pennsylvania
Posts: 3,623
ha ha ha ha ha ha ha ha ha

you are so full of it....

QUOTES FROM BOBBYGEDD IN THIS THREAD...

if you're smart like me, you net around 75%.
my NET ( or what i refer to as taxable income) is roughly 75% of gross
i know how to use a calculator


you show me anywhere in this thread you claimed you had a payroll of $40k

and you said you did $120k+

and you said 75% net

now you are saying $120k less $40k in payroll and $10k in operating costs which leaves you with $70k...and that is not even true net

with your definition of net, your net would only be 58%...and actually, after you paid taxes on that $70,000 (which would be about $12,500) you would truly be left with a NET of $57,500 which is.....

4 8 % N E T

AND THAT IS STILL ASSUMING YOU ARE ONLY SPENDING A TOTAL OF $10,000 IN OPERATING COSTS, WHICH IS VERY HARD TO BELIEVE

MIGHT WANT TO READ THE INSTRUCTIONS THAT CAME WITH YOUR CALCULATOR...OR HIRE AN ACCOUNTANT
  #46  
Old 09-16-2005, 05:10 PM
bobbygedd bobbygedd is offline
LawnSite Fanatic
 
Join Date: Nov 2000
Location: NJ
Posts: 10,188
scuse me? i clearly stated that my operating costs were 10 k per season, BEFORE payroll. YOU THEN, came back with a statement that my se tax should be based on 120k. YOU THOUGHT that se tax was based on GROSS. you also thought it was 12.5%. after i INFORMED YOU that it is based on net, and 15.3%, you come back and bash me. come on sean, i think you owe me an apology. on to my next question: what was the main reason you failed in the lawn care industry?
  #47  
Old 09-16-2005, 05:12 PM
bobbygedd bobbygedd is offline
LawnSite Fanatic
 
Join Date: Nov 2000
Location: NJ
Posts: 10,188
Quote:
Originally Posted by Sean Adams
bobby - I understand what the bear story means - just thought at that point you were referring to you netting 75%

and as far as that bear is concerned - going back to the tip of the day - why not show thanks to your clients now, so that if someone does pop up thats "faster" than you, there will be no concern

and as far as your math....I will still have to assume you are joking about "netting" 75%...

self-employment tax alone is 12.4% for your first $85k and medicare is 2.9% on all of your gross earnings....then you have to pay regular income tax (since you are a sole proprietor) - vehicle/liability/workers comp insurance alone after paying SE tax would probably take you over 25% expense
see.............
  #48  
Old 09-16-2005, 05:20 PM
bobbygedd bobbygedd is offline
LawnSite Fanatic
 
Join Date: Nov 2000
Location: NJ
Posts: 10,188
well, you and donovan must be over there painting each others toe nails. i can't wait this long for a reply. i got stuff to do. later
  #49  
Old 09-16-2005, 05:32 PM
dvmcmrhp52's Avatar
dvmcmrhp52 dvmcmrhp52 is offline
LawnSite Platinum Member
 
Join Date: Jul 2003
Location: Pa.
Posts: 4,211
This is just plain GOOD!
  #50  
Old 09-16-2005, 05:40 PM
Sean Adams Sean Adams is offline
 
Join Date: Jun 1999
Location: Pennsylvania
Posts: 3,623
bobby - you need to read up on your tax laws....

read what I wrote again...

self-employment tax is made up of two parts - it is not straight 15.3% (add my 12.4 and 2.9 bobby...)

12.4 percent for Social Security. The social security portion of the self-employment tax is limited to $10,788.00 if you earn equal to or less than $87,000 ($87,000 earnings limit x .124 = 10,788.00). Once you hit $87,000 of self-employment earnings, you have paid all you need to for social security.
2.9 percent for Medicare. The Medicare portion of the self-employment tax is unlimited. No matter how much, or how little you earn, you will be paying for Medicare.

I never said SE tax was based on gross....you said you had 10k in expenses and did 120k +... from the posts provided who appears to know the tax law, you or me?

I do not owe you an apology.... it's a shame you have to resort to name calling and backpedaling when it has been proven, without a shadow of a doubt that you are wrong and/or full of it...

YOU DO NOT MAKE 75% NET...HECK, YOU DON'T EVEN MAKE OVER 50% NET

Don't get me wrong, if someone is netting close to 50%, not to shabby...but don't sling your BS around here and claim you are netting 75%

And for your last question.... don't know where you get your information but the business I owned for almost 15 years was profitable and sold for a profit with no debt...if that's "failing" I hope I can continue failing the rest of my life
Closed Thread

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 07:41 PM.

Page generated in 0.12084 seconds with 7 queries