1st year

Discussion in 'Business Operations' started by rkeguy, Jan 22, 2012.

  1. rkeguy

    rkeguy LawnSite Member
    Posts: 130

    (Background): I started my own lawn care service after being laid off last March and began mowing first part of April. Luckly, I had a part-time job that paid very well and was already mowing 3 lawns for family members so I decided to gain more clients in lawn care service since I was trailering my equipment already. It took me until September to secure another full time job so I plan on continuing this part time next year.

    I mowed up till October and kept a good log of all deposits and expenses each month including filing the reciepts. I am meeting with CPA this week to evaluate what I owe for taxes and what I can write off. I just recieved information from my town concerning my business license for this year and have to give them an estimated gross revenue (only used to determine price of business license). Since I estimated less than $10,000 last year my license was only $50 and I setup as DBA.

    I know my bidding was off at times and I spent some money buying additional equipment that I did not already have, but still need to work on figuring my overhead. Since everything including my truck is paid for it may take more work to figure. Here is what I did last summer:

    Deposits: $3,914
    Expenses: $3,389.71

    Out of the expenses I used $1,037.44 in fuel and paid myself $1,744.90. My mistake was when paid in cash I noted in my books, but didn't deposit into business account for paper trail. So how can I use the above figures to help me figure overhead and pricing for next year?
     
  2. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,844

    rke are you a sole prop? If so, doesn't matter what you deposit your business income in whether it be a personal or 'business' account as there is no entity, YOU are the business.
    It is when you do S-Corp or LLC when you'd better keep your personal free from your business stuff.
     
  3. rkeguy

    rkeguy LawnSite Member
    Posts: 130

    Yes I am a sole prop and setup business name as DBA through township. I opened seperate checking account with debit card at bank just to make things easier than using my personal checking.

    Thanks for explaining difference in SP and LLC/S-Corp. I was unaware of the difference between them.
     
  4. ccibball50

    ccibball50 LawnSite Member
    Posts: 3

    first and most important thing to do is set up an llc for liability protection.
     
  5. ccibball50

    ccibball50 LawnSite Member
    Posts: 3

    I like filing as a sub s corp. which can allow you to take dividends and avoid payroll taxes. It is a simple form that has to be filled out separate from your formation papers.
     

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