Commercial Jobs and Isurance, Taxes

Discussion in 'Starting a Lawn Care Business' started by Birddog Lawncare, Jan 23, 2004.

  1. Birddog Lawncare

    Birddog Lawncare LawnSite Member
    from Ohio
    Posts: 73

    I am new to the business this year and already have my insurance lined up and my equipment purchased. I'm hoping to line up about 3-5 commercial accounts. Can you get by with out paying taxes? Will businesses write a check to your name or even pay in cash? I'm only hoping to have 10 accounts maximum with at least half of them being residential.
     
  2. WeatherMan

    WeatherMan LawnSite Senior Member
    Posts: 692

    First Welcome to Lawnsite.com Second Why dont you want to pay taxes?. I dont think any commercial clients will look kindly on you if you tell them they have to pay in cash so you dont have to pay taxes. Most companys write off that cost, so if you dont pay taxes old uncle Sam will pay you a vist.
     
  3. Birddog Lawncare

    Birddog Lawncare LawnSite Member
    from Ohio
    Posts: 73

    Thanks for the response Weatherman

    It just looks like by the time you pay for insurance, taxes, a CPA and equipment costs it looks like it's going to be awful hard to make a profit when your giving 1/3 of it back to uncle sam when I only plan on having 10 accounts when I would be happy to gross $10,000 this summer.
     
  4. twins_lawn_care

    twins_lawn_care LawnSite Senior Member
    Posts: 932

    not to sound like a smart a$$,
    but welcome to the real world.

    You are at a point in your life where you can learn to do it right, or learn to scam. With the latter, you will eventually get caught. Who know's when, but you will, and you will only have yourself to blame.

    On a serious note though, paying taxes is the just and fair thing to do. Why should every other hard working person out there have to pay taxes, and just because you don't want to, you can choose not to?

    Not trying to come down on you, just want to lay out the truth.

    I am currently grossing less than you, and I sure am paying taxes.

    A little note though, you only have to pay taxes on your "profits" so after you subtract off your expenses for equipment and operating costs, you may be paying a lot less than you originally are thinking.

    So if you gross $10,000, and your expenses for the year are $6,000, you only are paying taxes on the $4,000 profits.

    Hope this helps. I am sure you can learn a lot on this topic searching this site, as well as talking to an accountant for an hour, it will be well worth your time.

    Good luck with the business!
     
  5. Zach76

    Zach76 LawnSite Member
    Posts: 197

    Better to pay the taxes now than have to come up with a huge lump sum down the road to cover what you should have paid in the first place plus interest and penalties. Plus, if you get caught once, you're more likely to get audited again down the road. No fun at all to go through that. Pay your taxes now is my advice.
     
  6. WeatherMan

    WeatherMan LawnSite Senior Member
    Posts: 692

    We where audited last year, and it was a big pain in the butt after what seemed like 6 months but only around 2 months the little magets found that they owed me $300.00 I just wish I could sue them for all of my lost time. That would be great!!!!!!!!!!
     
  7. KerryB

    KerryB LawnSite Senior Member
    Posts: 661

    Are you doing this part time, and do you have another full time job?
    If so I think you might find that your expenses and all from this pt job may even offset some of your full time job income. It may cost you less.
    That is called tax avoidance.
    On the other side of the coin, (not paying taxes and not fileing) the penalties and interest will cost you a lot more. This is called tax evasion and sometimes involves jail time. Especially since you chose to ask such a question on an open forum. lol
     

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