Advice for starting a lawn business

Discussion in 'Starting a Lawn Care Business' started by agureyev, Jan 8, 2017.

  1. ProGroLawns

    ProGroLawns LawnSite Member
    Posts: 148

    If he's a sole prop yes a ssn would work, as an LLC I had to get a EIN.
     
  2. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,547

    Looks like it was in 1991.
     
  3. TPendagast

    TPendagast LawnSite Fanatic
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    Posts: 7,792

    I just asked someone who still runs ops in CT he said it was 5 years ago it changed.

    I was running landscaping for three municipalities in ct 12 years ago and can co firm services weren't taxed only goods, of course the munis are tax exempt but if you weren't on the up and up on your taxes it dq'd you from state or city contracts.
    So I know it wasn't 15 years ago
    I was still there doing business
     
  4. TPendagast

    TPendagast LawnSite Fanatic
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    Posts: 7,792

    Ct.gov
    Ip 2006 page 11
    Contractor labor not subject to tax
    Unless it's for commercial/income producing properties (like someone's rental)

    It says there was an update in 2011 that supersedes that
    Which is what my college said... about 5 years ago

    So it changed in 2006 and then again in 2011
     
  5. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,547

    TP, you're looking at CT's Building Contractor guidelines. CT specifically addresses landscaping, hort, lawn services, etc.

    The dates might be of interest to you. If, as I read it, they go back to '91 and '99, you might not want to say anymore about your potential past tax liabilities. ;)

    http://www.ct.gov/drs/cwp/view.asp?a=1475&q=268986
    http://www.ct.gov/drs/cwp/view.asp?A=1512&Q=269834
     
  6. Darryl G

    Darryl G LawnSite Fanatic
    Posts: 8,358

    Well I started operation in 2002 and I know as a fact that all of my services were then and continue now to be taxable unless they were for a tax-exempt entity. In my case the only work I've done for such entities are the Trust for Public Land (TPL) and a local church.
     
    grassmonkey0311 and tonygreek like this.
  7. Darryl G

    Darryl G LawnSite Fanatic
    Posts: 8,358

    Note: "Home Improvement" services in Connecticut, of which some landscaping services were qualified as, were actually taxed at a different rate of 2% historically. I think it was part of the economic recovery plan that dropped that tax entirely for a period starting July 1, 2001.

    But none of that really matters now. And sorry the tax rate is 6.35%, not 6.035.

    Edit: And for the OP. http://www.ct.gov/drs/cwp/view.asp?A=1510&Q=270560
     
    Last edited: Jan 11, 2017
  8. TPendagast

    TPendagast LawnSite Fanatic
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    Posts: 7,792

    Since all my stuff went through specific tax software and a cpa
    There aren't any worries on my end

    Add in the fact the multitudes of other companies I've been with and talked to through the years and the fact I just spoke with a company this morning who verified it was circa 5 years ago when it changed

    I'm fairly confident I'm looking at th right thing
     
  9. TPendagast

    TPendagast LawnSite Fanatic
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    Posts: 7,792

    The building contractor guidelines also specifically Andrews's landscaping and horticulture
    As I stated page 11

    What you're looking is referencing new installation work
    Also referenced on page 11

    I haven't read the 2011 rules
    But I'll take the other guys word for it that that's when it changed and everything is taxed

    But at least in 2006 residential maintenance for homeowner occupied properties was exempt

    Specifically states that in the document I referenced
     
  10. TPendagast

    TPendagast LawnSite Fanatic
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    Posts: 7,792

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