Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #1  
Old 12-07-2001, 08:46 AM
prairie prairie is offline
LawnSite Member
 
Join Date: Nov 2001
Location: kansas
Posts: 115
Tax Id #

CAN ANYONE TELL ME WHAT THE BENEFIT IS BY BUYING MATERIAL W/ A TAX ID# COMPAIRED TO PAYING TAXES WHEN YOU BUY?
Reply With Quote
  #2  
Old 12-07-2001, 09:04 AM
GroundKprs GroundKprs is offline
LawnSite Bronze Member
 
Join Date: Dec 1999
Location: South Bend, IN
Posts: 1,969
In most states the sales tax (or use tax) is to be charged to the final consumer of the product. That way intermediate handlers of the product do not have to pay any taxes on the item, and the taxing authority gets the tax on the final sale price (usually the highest cost of the article or service).

In IN, if you buy plants at the nursery, and you have a valid tax # and Nursery Dealer License, you will be charged a wholesale price, say $500. Now the retail price at the same nursery might be $800 for these same plants; that is what a homeowner would pay walking in off the street. You install these plants and charge your customer $900 for the plants plus labor. You need to mark up the cost of the plants to pay for your time in locating and delivering them, and to cover replacement of plants under your gaurantee.

In this scenario, you could just pay the nursery tax for the $500, and add that tax amount to what you charge the customer. But then you have upsold the items by $400, and the state did not get the tax on this $400. If you get caught, you will have to pay the tax out of your pocket, where the customer would have paid it originally if you did it right. On top of the tax due, you will also be hit with fines, penalties, and interest.

Contact your state tax office to learn how to do it right. In most states, if you are selling something, you are considered a retailer.
__________________
Jim
North central Indiana
<a href="http://members.aol.com/groundkprs/Entry/Educate.html">Learn About Turfgrass</a>
Reply With Quote
  #3  
Old 12-07-2001, 09:06 AM
SprinklerGuy SprinklerGuy is offline
LawnSite Bronze Member
 
Join Date: Oct 2001
Location: Scottsdale, Arizona/Colorado Springs, Colorado
Posts: 1,777
I'm not sure it is the matter of advantage to having one so much as it is HAVING to have one. In Arizona you have to have one, it is considered a business license. I have one for each city I work in also, can be a paperwork nightmare at times.
__________________
Tony Neumann
Reply With Quote
  #4  
Old 12-07-2001, 09:33 AM
prairie prairie is offline
LawnSite Member
 
Join Date: Nov 2001
Location: kansas
Posts: 115
SOFTWARE LINK

ON THIS SUBJECT FOR ACCOUNTING PURPOSES, WHAT TYPE OF SOFTWARE HAS ANYONE USED TO KEEP THEIR RECORDS? I WOULD LIKE TO BE ABLE TO KEEP THE RECORD FOR EACH INDIVIDUAL CLIENT AND HAVE THE SOFTWARE LINKED TO THE DESIGN SOFTWARE WHERE I CAN HAVE THE EST AND COST OF A JOB UNDER THE CLIENTS.
Reply With Quote
  #5  
Old 12-07-2001, 12:16 PM
Lech615 Lech615 is offline
LawnSite Member
 
Join Date: Oct 2001
Location: Long Island, NY
Posts: 105
NY LICENSE Question

Since you brought up the license question, I was wondering if anyone knows if I need a specific license in NY. I already registered the business name with the county, and received my Fed. ID #. I am in the process of getting Insurance, but is there another license I need. I am doing lawn care, but no pesticides.

Thanks,

Carl
Reply With Quote
  #6  
Old 12-08-2001, 10:57 AM
HBFOXJr HBFOXJr is offline
LawnSite Bronze Member
 
Join Date: Jul 2001
Location: Southern New Jersey
Posts: 1,700
I don't know but..

Most likely you will need a sales tax # and an employers tax id #. I don't know local tax stuff.

I suggest you call your state division of taxation to start.
__________________
Harold
Reply With Quote
Reply

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 09:05 AM.

Page generated in 0.08425 seconds with 7 queries