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Going Legal?

Discussion in 'Business Operations' started by KSL, Mar 12, 2008.

  1. KSL

    KSL LawnSite Member
    from MI
    Posts: 28

    First of all when would you say that you go legal and start paying taxes and what not. 21 yrs old bout 35 accounts. IF so how do you go about becoming legal and getting a tax id and making your company legit.

    thanks for the help guys
  2. IN2MOWN

    IN2MOWN LawnSite Platinum Member
    Posts: 4,993

    If you are making money then you should be paying taxes on it.
  3. delphied

    delphied LawnSite Silver Member
    Posts: 2,067

    michigan.gov and go LLC maybe. Thats how I did it. IRS.gov for tax ID You need to research it on the internet unless you trust other people. Personally, my feeling is that there is no honor in paying tax to a crooked govt and if it werent for wanting to protect what I already have I prolly wouldnt be legit.
  4. wintergreenlawn&landscape

    wintergreenlawn&landscape LawnSite Member
    from CT
    Posts: 175

    Fill out sales and use tax paperwork with your state and theyll send you your license and tax number. But first decide if your going to go LLC, etc. Make sure you contact your insurance agent and buy appropriate insurance. Not worth losing everything because you spit out a rock and hit somebody or some other freak accident. If you go LLC, that will protect you also by enabling them to only go after your business and not your personal assets.
  5. sandman23

    sandman23 LawnSite Member
    from GA
    Posts: 212

    KSL, you should get an accountant. There are so many aspects to running a legit business. It is not as simple as getting an ID and paying taxes. You should get incorporated. I am a S corp. It was suggested that I become SCorp instead of LLC. I don't remember all the reasons but they made sense at the time. There is Payroll (even if it is just you, you should pay yourself a salary). There is insurance (liability, theft, auto). You need a business license. You need an accounting/invoicing program. I use QiuckBooks Pro. And, there always seems to be something that I need to file, send in, or renew.

    My accountant takes care of all that for me. I could not imagine doing this without her.
  6. cgaengineer

    cgaengineer LawnSite Fanatic
    Posts: 15,782

    I am not an accountant and dont claim to be one, but here is my advice and your mileage may vary...

    You can start out paying taxes on a 1040 at the end of the year like I do, and the commercial accounts make it easy as they usually send you a 1099. You probably wont get all the benefits as starting a corporation like purchasing supplies with a tax ID and deferring taxes, but you can make it work until you see fit to change. I have no idea how much money you are making, nor do I care, but I do know that after so much income the IRS wants tax payments sent quarterly.

    I have claimed my income on my 1040 for 3 years and will do it again this year, you just have to make sure you put enough back to cover yourself at the end of the year. I do this because I have a fulltime job right now and its easier for me.
  7. wintergreenlawn&landscape

    wintergreenlawn&landscape LawnSite Member
    from CT
    Posts: 175

    If you have numerous employees and are looking to save on employment tax, then an S Corp is for you. However, If you are going to be the sole proprieter, owner / operator etc ,then it will be easier to facilitate an LLC and afford you better liability protection. Like sandman said , talk to an accountant. I sent you in the general direction, by no means did I say it was that cut and dry. I also use QuickBooks Pro, its by far the easiest and most thorough program out there for the small business.
  8. RedSox4Life

    RedSox4Life LawnSite Bronze Member
    from Mass
    Posts: 1,480

    Are you serious? Who pays for the roads you drive your truck on every day? Who pays for the school your kids go to? Who pays the social security you'll collect when you're too old to work? Who pays for your security?
    Yes, the "crooked govt" does it all.
  9. Enzo

    Enzo LawnSite Member
    Posts: 86

    My friend is an accountant and he is hooking me up with my taxes and all that plus he is getting me registered with an LLC so I dont got to do it myself or with an attorney.
  10. PTSolutions

    PTSolutions LawnSite Silver Member
    from OH
    Posts: 2,328

    llc is really easy to set up, just a couple pages of paperwork from the state and your set. only need a lawyer to draft up paperwork for corporartions. get yourself a tax id after you register with the state. then make sure you include tax in your prices or else it eats into your revenue. set yourself up with some liability insurance and you should be good to go! we have an accountant do all our taxes, alot of different stuff in our household, dad has a construction company, our landscaping company, mom's personal income etc... plus hes been a friend of the family for awhile.

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