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  #51  
Old 10-12-2012, 03:32 PM
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jsslawncare jsslawncare is offline
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Location: North Georgia
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You know how the FBI are on the internet looking for sex offender's? I think Greg is an IRS agent looking for cheater's. I'm just a grass cutter with an accountant. I'm not even a landscaper!
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All equipment is wore out. <- Never mind. All equipment has been repainted and with new decals. It's like I have new mower's again!
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  #52  
Old 10-12-2012, 04:12 PM
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Greg78 Greg78 is offline
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Quote:
Originally Posted by jsslawncare View Post
You know how the FBI are on the internet looking for sex offender's? I think Greg is an IRS agent looking for cheater's. I'm just a grass cutter with an accountant. I'm not even a landscaper!
Darn you figured me out..... Just don't want to see anybody led down the wrong path.

You might want to look into a new accountant.

I noticed you didn't answer my question though.
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  #53  
Old 10-12-2012, 11:17 PM
superdog1 superdog1 is offline
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Join Date: Mar 2011
Location: Lebanon, PA
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Quote:
Originally Posted by jsslawncare View Post
You know how the FBI are on the internet looking for sex offender's? I think Greg is an IRS agent looking for cheater's. I'm just a grass cutter with an accountant. I'm not even a landscaper!
With all due respect to you and your accountant, you are BOTH wrong. Very, very wrong. I was a full time insurance agent for 20 years and I still work part time when I feel like it. With that being said, I have had many clients get busted for using 1099's when they should have been using a W2. Their accountants also told them it is OK to do so. To them, it makes sense. They don't understand insurance. Why should they?, nor do they understand labor laws. Here again, why should they? They are accountants. That's all they do.

What you are doing Sir is the same thing as asking your Doctor to give you advice on how to fix your mower. He may be able to tell you that gas fumes and grease and oil on your hands may cause cancer, but that's about as far as it goes. I am NOT trying to insult you or make you angry. I am simply trying to save you a LOT of $$ because if you get caught? it will cost you a lot.

When you 1099 a worker, then that worker is considered a sub-contractor. A true sub is a person or business that gets 70% or more of their income from another source in the same field of work that you do. IE, if you had a large mulching job that you had to get done in a short amount of time, you may hire another local landscaper to help you. You then 1099 him/her at the end of the year for whatever amount you paid them.

If you hire someone to help you do mulch or cut grass on a regular basis and you tell them what time to show up, what time to leave and you provide all of the needed materials to complete the job, they are your employee and you must give them a W2. You must also provide WC (workmans comp. insurance) and withhold taxes from their check. What I have just posted is only the tip of the iceberg and some of the links already proved by other posters will give you more information. I highly suggest you read them.

You may never get caught? as I know many LCO's who do this all the time, even though they know it is wrong because it is easier and cheaper than doing it the right way. The $hit will hit the fan when one of your 1099'ers you have working for you get hurt or try to claim unemployment compensation. That's when the guys I had as clients got nailed. While I hope you never do get caught, the clock may be ticking?.....................................






Quote:
Originally Posted by Greg78 View Post
Darn you figured me out..... Just don't want to see anybody led down the wrong path.

You might want to look into a new accountant.

I noticed you didn't answer my question though.
Greg, I do agree with you on the accountant thing!
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  #54  
Old 10-13-2012, 09:11 AM
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Greg78 Greg78 is offline
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Took out a loan to buy a truck our second year in business, paid off in 2 years. This year we added a new zero turn will pay it off early as well.
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  #55  
Old 10-13-2012, 10:31 AM
nealster nealster is offline
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Join Date: Oct 2012
Location: Hilton Head, SC
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Quote:
Originally Posted by GravelyWalker View Post
Its becoming hard on me seeing all the other LCO's driving around with their nice trailers and mowers.(no offence to anyone). I have a old 40'' Gravely walk behind belt drive, its wearing on me after a 6 hr mowing day and I want to make my job easier. My question is how many of you have financed or taken a loan out for equipment? I really really dont want to because I dont like credit. This year I only went part time but planning on full time next year. I just dont think I can come up with 4-5k by spring to get a ZTR. Any thoughts?
Go to Ibank.com and fill out a request for business capital, they can get you moving in the right direction really quick. You will pay comissions to those who get you financed but it can be worth it. I was looking for 40K for my business and got over 95k in the first go around and it took less than 60 days to get financed.
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  #56  
Old 10-13-2012, 11:34 AM
jmacd jmacd is offline
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Location: Upstate New York
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To add to the 1099 debate.

Your 1099 sub contractors should have at least a DBA, Workman's comp, provide a certificate of insurance with you as a co-insured, and a Federal ID number. A separate business checking with income from others would be good also.

You would probably do better just paying them cash under the table than 1099 them, no paper trail. Then you lose the pay role deduction.

You can not have it both ways.
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  #57  
Old 10-13-2012, 06:35 PM
jamesg jamesg is offline
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Join Date: Oct 2012
Location: Dallas,TX
Posts: 9
Using credit wisely is one of the best business decisions you could ever make. EVERYsucessful business leverages credit to preserve cash flow.

I would look for the best terms and go for it. Pay the balance down to $0 before taking on more debt. This will build your credit and give you piece of mind. Paying for everything in cash sounds good but it's not practical, and also not always necessary.

Credit is a tool of the trade just like a good mower or edger- use it wisely, don't abuse it, and it will keep making you money.

James G.
M.B.A.
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  #58  
Old 10-13-2012, 06:38 PM
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Blades Lawn Maintenance Blades Lawn Maintenance is offline
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Join Date: Mar 2012
Location: Baton Rouge, La
Posts: 1,233
Hey guys since we are talking about credit and loans I got a quick question for yall. Being that I just turned 18 (sept 17) how would y'all suggest I get my credit started?
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Enough Said...
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  #59  
Old 10-13-2012, 06:46 PM
jamesg jamesg is offline
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Join Date: Oct 2012
Location: Dallas,TX
Posts: 9
Hey Blades......

Start slow with credit...if you're talking about building your business, try financing a handheld or something small...something you could buy in cash or pay off in one shot if you had to. Pay on time, pay more than the minimum, and negotiate everything- all rates and terms are negotiable.

Once you pay it off, evaluate your needs, check your credit report and scores, and go from there. Use it wisely........you always want to have some cash and some credit available. Never max them both out at the same time.
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  #60  
Old 10-13-2012, 07:00 PM
Duekster Duekster is offline
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Join Date: Jan 2007
Location: DFW, TX
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I found it easier to finance a truck the first time around. I had to co-sign with my personal credit the first two times and after that it was me for the company.

PS.... I have never been asked for my DUN's number but I set one up early for my entity.
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