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Benefits of a business license

Discussion in 'Starting a Lawn Care Business' started by amlico, Jul 29, 2005.

  1. amlico

    amlico LawnSite Member
    Posts: 5

    Hey everyone.

    I'm considering getting involved in lawn maintenance initially on a part time basis. What are the advantages and disadvantages of applying for a business license verses just giving yourself a company name and going from there? Would the tax write-off of expenses make having a business license a smart move, or would having to report the income and pay taxes quarterly or yearly offset the tax write-off benefits? What specific expenses are you allowed to write-off as business expenses when filing your tax return? Any thoughts or advice would be greatly appreciated. Thanks.
  2. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    for one, your not legal, that is criminal, two, you work hard for two yearws and establish yourself and your name, someone comes along and registures your name, you didnt, now they have your name recognition....

    you either do things n life right or wrong, if you dont operate a business legally, you are doomed for thinking that way
  3. LiL Hustler

    LiL Hustler LawnSite Member
    Posts: 102

    Well, The first benefit I can think of is that you are not breaking the law!!! Second how can anyone take you seriously if you don't have a license or insurance? Do it right or don't do it at all!
    I believe in that saying more ways than one.

  4. amlico

    amlico LawnSite Member
    Posts: 5

    Thanks for your replies. Actually, I wasn't seeking advice on how to get around any legal issues. I could always cut a few lawns here and there without bothering with a company name and report my additional income at tax time for that matter. I'm a person who does the speed limit while driving, which irritates a very large percentage of the other drivers around me. Why, I don't know. After all, it is the law, isn't it? I'm not looking to operate illegally, and perhaps I should have put more thought into my post. At any rate, I am interested in knowing which expenses concerning operating a lawn service are tax deductible. Any responses to that specific issue would be appreciated. Thanks.
  5. RonB

    RonB LawnSite Senior Member
    Posts: 429

    Every expense is tax deductible if you make income from it.

    Some of the less obivious are your business license, insurance, travel expense (keep a mileage log), all repairs for the truck, trailer, equip., postage for billing, laundry, rent, all supplies, a business cell phone, an 8x10 shed to store the mowers from Lowes, ice for the water you drink ..
  6. amlico

    amlico LawnSite Member
    Posts: 5


    Thank you for the info.
  7. a1 lawncare

    a1 lawncare LawnSite Member
    Posts: 153

    in one town here i work in the fine for first offense is 500$ versus a 24.50 $ license, one job and the license is paid for, and this town will actually check you, random, i found out when a painter told me that he had been fined, for working in the "city" w/o a license...

    and like lil hustler mentioned, i advertise licensed and insured and see no reason not to be, seen a guy the other day in a tank-top wearing flip-flops in a pos car with 2 21's hanging out of the trunk, 2 or 3 gas cans, if thats what people want, ok, but what happens when this guy gets hurt on their property, or he hits a bump and one his work-horses jumps out of his ride :dizzy:

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