do I need?

Discussion in 'Starting a Lawn Care Business' started by woodie08, Feb 20, 2008.

  1. woodie08

    woodie08 LawnSite Member
    Posts: 53

    I'm stating as a sole prepitership bussiness. so I can file my taxes once a I need a federal tax i.d.? I keep finding these companys online that want to charge for my dba, and tax i.d. and they do the work should I just have them do that? I cant find that right web page in ohio to apply there...And whats up with the insurance? the mowing season is 8 months and the want to charge for the year.. its all good just need my DBA:hammerhead:

    CLARK LAWN LawnSite Silver Member
    Posts: 2,526

  3. grass-scapes

    grass-scapes LawnSite Bronze Member
    Posts: 1,552

  4. Wilson Edge

    Wilson Edge LawnSite Member
    Posts: 77

    as for the insurance. I dont do snow removal or anything like that so like you said i am only working 8 months out of the year. When i applied for the insurance the agent explained that if i was only working 8 months out of the year that the agency figures it in and has the price lower. they understand that they are most likely only going to have a liability durring the 8 months. but also remember you will still be covered for theft which many people can tell you that theft often ocurs during the storage of the equipment. hope this helped
  5. cgaengineer

    cgaengineer LawnSite Fanatic
    Posts: 15,782

    Law maybe different where you are, but here...

    I have no tax ID or a company name, just a DBA. At the end of the year I file a 1040, and with the commercials I get 1099'd so I count that as income as well. Just be sure to put back enough to pay your taxes at the end of the year.
  6. grass-scapes

    grass-scapes LawnSite Bronze Member
    Posts: 1,552

    you can get a tax ID for a sole prop. and its probably in your best interest to do so. do you really want your social security number given out on any forms like 1099's to subs, or w2's if you have any? Keep your social security number a litte more secure that way.
  7. woodie08

    woodie08 LawnSite Member
    Posts: 53

    thanks for you help guys
  8. moonscapes

    moonscapes LawnSite Member
    Posts: 18

    Sorry.. a little behind on the lingo...what a DBA?
  9. Roger

    Roger LawnSite Fanatic
    Posts: 5,923

    DBA -- doing business as

    As far as filing and paying taxes once per year, the IRS frowns on this practice to the point of penalties and interest. You are to file estimated payments on a quarterly basis.

    The fact the question is asked tells us that you are not working with an accountant on these matters. An accountant would be giving you vouchers to make the quarterly payments. There are many, many threads on this topic, mostly posted in the Business Section. The advice in those threads is universal: work with an accountant. Also, many of the posts say the same thing in response to the cost: an accountant will save you money on deductions and procedures that you are not aware.

    Handling financial matters is part of being a small business owner. A part of those financial matters is taxation. No, you may not like it, but it is a fact of business ownership. Doing it right will potentially save you from audits, and also will probably save you money in the long run.

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