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Old 04-24-2013, 08:49 PM
matt arends matt arends is offline
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How to be "legit"

I have been mowing for years for a company and I have got a stander,walk behind, trailer and all the other goods. I'm starting a small side lawn care business as I still have a full time job. I currently have 3 yards that I mow on the side and collect cash from. I'm curious about how to become legit with the government. I live in Missouri. If anyone could give me tips or advice it would be great. Thanks Matt
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Old 04-24-2013, 09:18 PM
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jrs.landscaping jrs.landscaping is online now
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I'm curious about how to become legit with the government.
Pay taxes for the money and for being self employed......
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Old 04-24-2013, 09:55 PM
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OnMyOwn OnMyOwn is offline
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Meet with a bookkeeper and select an S corporation, or LLC. Once established, go to IRS.gov and apply for an EIN. Take these to the MO Secretary of State and get registered. Go to MO Dept of Revenue and see if you need to pay taxes on employees, or purchases. It is imlortant to be legal AND you can still make much money playing above board. You can pme sometime and i would be happy to answer personal questions. Good luck.
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Old 04-24-2013, 10:06 PM
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AMW Landscaping AMW Landscaping is online now
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Get more jobs!!!
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Old 04-24-2013, 11:14 PM
Raymond S. Raymond S. is online now
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You're mowing a few yards. Just file a DBA and get a business checking account set up at your bank. Throw your cash (or checks) into that account. Keep track of your expenses and schedule your equipment (make a list along with each piece's appropriate value.) at the end of the year take it to your accountant and tell them you are working on the side and this is how much you earned, these are your expenses (itemized) and this is what you have for equipment and also how much you spent on it. You'll be taxed accordingly on the net profit of the business, which in your case there won't be any profit with just a few yards.

If you remain a sole proprietor you can use your SS# as a tax ID number if you start to get commercial accounts and receive 1099s. Eventually you would want to file for an EIN but if you are going to remain a small residential mowing company there is no need to.
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Old 04-24-2013, 11:22 PM
birddseedd birddseedd is offline
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Inquiry:

What is the difference in taxes you pay if you file a DBA and are a Soul Proprietor VS being a LLC?

I know that with an LLC the business pays taxes, and pays taxes on you (the employee/owner) and you also pay income taxes. seems you are being taxed up the ying yang. What exaclty are you paying for a SP? I do my taxes, but honestly am not sure what tax im paying. sure seems like it would be much less than if i was an employee of hte LLC
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wait why do you prefer Scag? I thought you owned a Bobcat that mowed the first American Colonies
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Old 04-24-2013, 11:51 PM
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Originally Posted by birddseedd View Post
Inquiry:

What is the difference in taxes you pay if you file a DBA and are a Soul Proprietor VS being a LLC?

I know that with an LLC the business pays taxes, and pays taxes on you (the employee/owner) and you also pay income taxes. seems you are being taxed up the ying yang. What exaclty are you paying for a SP? I do my taxes, but honestly am not sure what tax im paying. sure seems like it would be much less than if i was an employee of hte LLC
You need to do more research on an LLC. LLC is a pass through entity. All of the profits and losses of the LLC “pass through” the business to the LLC owners (called members), who report this information on their personal tax returns. The LLC itself does not pay federal income taxes, it may have to pay state taxes though it varies.
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Old 04-24-2013, 11:54 PM
birddseedd birddseedd is offline
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Thanks. thought it was similar to a corp. so unless my state charges an "llc" tax then tax wise llc is no different than SP. but you get some liability protection for yourself.
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wait why do you prefer Scag? I thought you owned a Bobcat that mowed the first American Colonies
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Old 04-25-2013, 12:50 AM
Raymond S. Raymond S. is online now
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My lawyer said this regarding an LLC. The same lawyers that made the rules for an LLC or corporation are the same ones that will tear it apart when you get sued and try to hide behind that LLC. If you're a small time outfit and looking for protection spend the money on extra liability insurance. An LLC is a pass through entity so either way you are going to pay the tax on earnings.
Regarding a corporation: All you have to do is buy a candy bar with a company credit card and you have pierced the corporate veil. They dissolve the corporation and again, no protection. It's an extreme example but the moral of the story is dont necessarily think because you form an LLC or corporation that you are suddenly protected. There's no substitute for a good liability policy.
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Old 04-25-2013, 05:44 AM
rbljack rbljack is online now
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Originally Posted by Raymond S. View Post
You're mowing a few yards. Just file a DBA and get a business checking account set up at your bank. Throw your cash (or checks) into that account. Keep track of your expenses and schedule your equipment (make a list along with each piece's appropriate value.) at the end of the year take it to your accountant and tell them you are working on the side and this is how much you earned, these are your expenses (itemized) and this is what you have for equipment and also how much you spent on it. You'll be taxed accordingly on the net profit of the business, which in your case there won't be any profit with just a few yards.

If you remain a sole proprietor you can use your SS# as a tax ID number if you start to get commercial accounts and receive 1099s. Eventually you would want to file for an EIN but if you are going to remain a small residential mowing company there is no need to.
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x2...this is exactly what I did. I thought about the LLC, and may go that route in the future, but started with the "dba". Simply went to the courthouse and filed my name with the county. it cost about 14 bucks, and thats the first step to a legit buisness. I then opened a dedicated checking account, and ONLY use that account for expenses for the business. All income from the business also goes into that account ONLY. Its important to separate your business expenses from your personal expenses. from there, you file taxes on the income/expenses at the end of year as part of your tax return.

One other thing to remember is this: keep a mileage log for your vehicle if your using it for both the business and personal use. It comes into play at the end of year when filing your taxes.
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