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Finally making a business out of it

Discussion in 'Starting a Lawn Care Business' started by C Cutters, Feb 15, 2007.

  1. C Cutters

    C Cutters LawnSite Member
    Posts: 33

    Alright, I have a simple question that I HOPE does not sound too dumb.
    This is my third year moring lawns. Up until now I have been mowing lawns as pretty much the "neighborhood kid." I have all the equipment I need (trailer, truck, 52" Exmark, Echo Backpack blower & weedwacker, several 21" mowers) and this year I finally want to turn it into an actual business. My question is this: What do I need to do to become licensed (and is this required?) and what are some typical insurance rates? (not sure what insurance is based on). As well, what gets taxed in the lawn care service industry?
    I KNOW some of these questions are very elementary, but I do not know the answers to them yet. Thanks a bunch for your help ya'll!
  2. lawnpro724

    lawnpro724 LawnSite Silver Member
    Posts: 2,201

    To get a license you will need to contact you states dept. of revenue and ask them for a business registration tax kit, it should have everything you will need. You can also go online and go to www.irs.gov If your going to be spraying chemicals you will need to get a commercial applicators license from your Dept of Agraculture. Insurance cost depend alot on how much experience you have most will run $500-$600 a year for $1,000,000 in coverage depending on the company.
  3. JGroverCU

    JGroverCU LawnSite Member
    Posts: 25

    I have been going through the same things for the las t few weeks. It looks like insurance is between 500-800 depending on the provider. That does not include workers comp. If you have employees, your state may require you to purchase workers comp for them. Here in SC, workers comp is not needed for solo unless you get into the commercial sector, then is is heavily reccommended. Some comercial accounts may require a paper stating that you are up to date in workers comp.
    As far as what is taxed and what you can write off, that depends on what type of business you are going to choose. Many choose the LLC. rounte and several go with corporation. Here we have to have an attorney sign papers to become incorporated. It would be well worth your money to look into an accountant that can help you make that decision.
    As for the licensing, business licenses are required for all areas that you conduct business in. For instance, here in SC, if my business were based in Myrtle Beach, I would have to have a license from the city of MB and licences from surrounding cities if I serve any customers in those areas.

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