filing taxes?????

Discussion in 'Business Operations' started by cmorris, Jun 28, 2004.

  1. cmorris

    cmorris LawnSite Member
    Posts: 44

    :confused: I have been doing lawn maintenance for the past 8 yrs or so. I do this part time, but lately I have been getting more and more commercial biz. I used to just file my taxes at the end of the year. But now my c.p.a has sent me tax i.d. number, I haven't done anything with it though. I am now starting to do alot of installation and buying from wholesail. How will my tax i.d. number help me???
  2. jajwrigh

    jajwrigh LawnSite Bronze Member
    Male, from Martinsville, IN
    Posts: 1,405

    Your kidding right? This gives the IRS a way to "keep tabs on your business." That number is the social security of taxes. Pay quaterly and be honest ...or else! This obviously applies to all business income residentail or commercial.
  3. TSM

    TSM LawnSite Senior Member
    from MA
    Posts: 707

    assuming that you have been honest and paying taxes on revenues earned then the tax id number wont be of any benefit to you.

    if you are solo ( i have to assume you are) you dont need the fed tax #....your ss# is all you need.

    If you want to open up a business bank account, well many banks, if not all, will require a fed tax #...of course you could open a DBA account with most banks with just your SS#

    If you hire employees, well then you will need that fed tax #

    your question is how will a fed tax id # help wont
  4. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi CMorris,

    Here is some more information that may be helpful from this article.

    "A federal tax identification number is a nine-digit number assigned specifically to you that identifies your business to the government. If your product or service involves tax in any way, you're required to get a tax ID number (also known as an Employer Identification Number, or EIN). Therefore, if your state levies a tax against your service, or if you are charging tax on your product, it's in your best interest to apply for a tax ID number.

    The government requires you to identify your business with either a Social Security Number or the tax ID number on all government forms and official documents.

    You will need an EIN if:

    * You have employees.
    * Your business is a corporation or a partnership.
    * You file any of these tax returns: Employment, Excise or Alcohol, Tobacco and Firearms.
    * You withhold taxes on income, other than wages, paid to a nonresident alien.
    * You have a Keogh plan.
    * You are involved with: trusts, IRAs, exempt organization business income tax returns, estates, real estate mortgage investment conduits, nonprofit organizations, farmers' cooperatives or plan administrators."
  5. cmorris

    cmorris LawnSite Member
    Posts: 44

    no i wasn't kidding, just a question. I keep track of everything and i don't charge tax. i was just wondering if I should file quarterly or not, thank you for the help.
  6. CamLand

    CamLand LawnSite Bronze Member
    Posts: 1,300

    yes,yes,yes pay quarterly much easier to do it this way then paying lump sum at end of the year.also be honest with uncle sam because he wont be kind to you if you hold out on his money..
  7. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Posts: 1,847

    that is a problem. youll want to look into that promptly
  8. Turf Medic

    Turf Medic LawnSite Bronze Member
    Posts: 1,073

    If you are paying a cpa, why don't you ask him what the benifits of a federal id number are? Asking the question here makes about as much sense as asking your cpa how to sharpen blades :D.
  9. hoyboy

    hoyboy LawnSite Senior Member
    from Chicago
    Posts: 346

    I think you're confusing sales tax with income tax. Learn the difference.

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