Benefits of the Small Business

Discussion in 'Business Operations' started by hunting202, Jul 9, 2003.

  1. hunting202

    hunting202 LawnSite Member
    from Alabama
    Posts: 19

    want to ask yall a question. I have always heard that there are lots of hdden benefits to a small business, writeoffs and stuff. Is there a place I can read and find some of these out?

    I do not want to be missing out on anything!!
     
  2. GeorgiaGrassMan

    GeorgiaGrassMan LawnSite Member
    Posts: 147

    It would probably be better to ask your tax accountant which "hidden benefits" you are entitled to. Asking LCOs (or anyone who isn't a tax professional) for tax advise might land you in a "not so hidden" federal prison for tax evasion. I mean think about it. If you work for "da man", you're going to get W2s every year and although it is certainly possible for you to cheat on your taxes, you will have limited opportunity to do so. If you have your own business, there are nearly unlimited ways you can cheat. Now if I'm the IRS, who do you think I'm going to concentrate on for audits? I'm in business so I don't have to work for the "da man" - not to become some inmates "wife"! Play it safe - take the advise of a tax pro on these "hidden benefit" matters.
     
  3. mtdman

    mtdman LawnSite Gold Member
    Posts: 3,137

    You have to be careful with 'hidden benefits'. Certain tax deductions, such as home offices, are often red flags for the IRS. My tax adviser clued me in on that stuff a long time ago. Sometimes it's best not to try for all the 'benefits' to stay under the radar.

    :D
     
  4. Lombardi

    Lombardi LawnSite Senior Member
    Posts: 538

    Buy the book, "How To Pay Zero Taxes".
     
  5. Meier

    Meier LawnSite Senior Member
    from DFW
    Posts: 269

    Benifits? I dunno about that. Being self employed, you'll pay about 15% in ss/med tax as opposed to the 7.5% or so that you'd pay as an employee.

    I keep trying to convince myself that I'm getting some personal use out of my cell phone, which is paid before tax as an operating expense. Problem is, so many of my friends' employers pay their cell bills too that I don't guess this is any big deal.

    Then there's the issue of the PC. I can buy a PC and call it a business expense, but all my friends are getting laptops they can carry home from work and use for personal stuff. So...still looking for the benefit.

    Most fortune 1000 employees also have some sort of employer match on their 401K contributions. Some also have employee stock purchase plans available. Some get free stock options. Many get all three.

    Don't even talk about things like sick days, health insurance, disability insurance, etc. Employees of fortune 1000 companies will smoke our butts on these things.

    Many of my employed friends fly so much with their jobs that when we all go to Vegas each summer, I'm paying cash for an airline ticket and all my friends are flying free.

    The benefit for me is knowing that my sole source of income can't be completely eliminated with the decision of a single person. For me, that's a HUGE deal. For many others, it may not be. But when I was working in Corporate Amerika I was always paranoid about the 'lay off'. I made it 8 years and 2 months and finally, Worldcom got me. They told me I was laid off on my birthday and 7 days later was my final day of employment. May turn out to be the last day of employment for me forever.

    Another big motivator for me is not having to play office politics. I don't miss office politics at all. Not to mention, there's no one constantly trying to sell me their kids over-priced fund raising candy bars or pressuring me to contribute to the boss' Christmas present fund or the going away present fund for some co-worker I didn't even know anyway. Don't miss any of 'cheesy' that stuff.

    Later,
    DFW, TX
     
  6. mtdman

    mtdman LawnSite Gold Member
    Posts: 3,137

    Very good points, and I have to say "Ditto" to those sentiments.

    :D
     
  7. Green in Idaho

    Green in Idaho LawnSite Senior Member
    from Idaho
    Posts: 833

    And NO MORE dang birthday cards for people you don't even know!
     
  8. Port City Lawncare

    Port City Lawncare LawnSite Member
    from Alabama
    Posts: 75

    Will someone explain how I can write a new truck off?
     
  9. williamslawn

    williamslawn LawnSite Member
    from SC
    Posts: 202

    Millage if you only have one truck on the road at the same time. Actual cost of expenses and truck cost and intrest. If you make payments. I have 5 on the road now and am looking to replace two of them in the next month.
     

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