Contracts & Sales Tax

Discussion in 'Starting a Lawn Care Business' started by anchormenrugby, Aug 21, 2007.

  1. anchormenrugby

    anchormenrugby LawnSite Member
    Posts: 5

    Some of this may be obvious, but you never know...

    1. Should I always work off a contract with clients?

    2. If I state $30 for a lawn, does that include state tax or do I add that on the bill above the quote?

    Can anyone send me a sample lawn care contract?
     
  2. Horsepower Lawns

    Horsepower Lawns LawnSite Member
    Posts: 213

    Is lawn mowing taxed in your area? Where I am its not.

    I don't use a contract. Its up to you and your area.
     
  3. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    This is totally up to you. A contract would spell out exactly what is expected of you and your client. It is a good idea to have one but not a necessity.

    Like the last poster said services are generally not taxed. If Rhode Island does tax services then it is up to you as to whether the $30 includes the tax. Your contract should state this as well.

    People generally pay an attorney to draft a contract and are unlikely to give it away. However, there are samples available in this site if you search.
     
  4. prizeprop

    prizeprop LawnSite Senior Member
    Posts: 820

    In Jersey we charge sales tax for cutting,so check your state.The price you give should not inlcude the sales tax.It should be itemized as such. Your bill should be (ex) : 4 cuts @ $30 per=$120.00 NJ 7% SALES TAX $ 8.40 Total due $128.40
     
  5. Roger

    Roger LawnSite Fanatic
    Posts: 5,927

    If your state requires collection of sales tax, then most likely you will need to get a license to collect the tax. Your first task should be learning your taxing regulations, either from your accountant, or from a web site at the state level.

    If a sales tax is to be collected, your final price can be either: (1) A total price that includes the tax (two components, one for the service, one for the tax), or (2) A price for the service, plus a tax added to determine a final amount. Retail stores typically use (2), the price of a product, then add the appropriate tax.

    Whether you choose (1) or (2), you still owe the state the tax money you have collected from your customers. In PA, the submittal is on a quarterly basis, until you reach some level of amount being collected. After reaching a plateau, the submittal is monthly. Your state will have their own rules.
     

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