I just dont get it......Help!

Discussion in 'Starting a Lawn Care Business' started by fire228, Jul 31, 2007.

  1. fire228

    fire228 LawnSite Member
    from florida
    Posts: 34

    I have read the posts on here about taxes but I just dont know what to do. I am in a partnership business, I own half the company and my partner owns the other half. Its just us two working and we spilt everything 50/50. We just dont know what to do about taxes! I know we should be taking some out, but how and how much?
    This lawn business is a part time job of ours and We make about $800-$900 a week and spilt that down the middle so how much should we be taking for taxes? How exactly do we do it? HELP!!!!
     
  2. dapeoplesbarber

    dapeoplesbarber LawnSite Member
    Posts: 7

    I would like to know the same thing???????
    I am a full time barber and since it's a service we dont tax.....I assumed it was the same for the lawn biz????


    Help us here!
     
  3. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    GO SEE AN ACCOUNTANT!!! Seriously, retain the services of an accountant and they will get everything in order for you and let you know EXACTLY what you need to do. Don't take any tax advice from anyone here. Make an appointment tomorrow morning with an accountant. An accountant will make your lives so much easier.
     
  4. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,465

  5. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    :clapping: :clapping: :clapping: :clapping: :clapping: :clapping: :clapping:

    best advice I have seen
     
  6. newz7151

    newz7151 LawnSite Silver Member
    from Tejas
    Posts: 2,419

    Are we talking about sales tax? In Texas, Lawncare/Landscaping is required to be collected sales tax.
     
  7. CuttersEdgeks

    CuttersEdgeks LawnSite Member
    Posts: 36

    I agree see an accountant. Here we have sales tax plus all the other taxes I set back %25 here. Got to remember we get an added bonus for being selfempolyed the Gov thinks they deserve more.
     
  8. deapee

    deapee LawnSite Member
    from pa
    Posts: 25

    I'm new to the lawncare side of things but have been running my own business for a good while now in PA. We must charge sales tax on just about everything we do (7%)...it's not much from job to job as long as you set it aside...it adds up over time though.

    As someone mentioned, go see an accountant...Every area is different...so what is true in PA may not be so in FL.
     
  9. bullethead

    bullethead LawnSite Senior Member
    from Texas
    Posts: 273

    Good advice - go see your CPA

    For the guy in Texas - lawn service is subject to our state's sales tax
     
  10. allenclan1

    allenclan1 LawnSite Member
    Posts: 29

    A lawn "service" is just like any other "service". NO SALES TAX. However, the KGB...I mean the IRS will want you to pay INCOME tax. The easiest way to handle this is put ALL your income into a checking account and use that account ONLY for business. Pay your expenses ONLY out of that account and put ALL your income into that account. What is left over at the end of the year is called PROFIT. If you want to pay yourself a salary out of that account, that's ok. Write yourself a check and deposit it in your personal account. The profity plus the salary you pay yourself will need to be claimed as income at tax time. If you get big enough to incorporate, your corporation will pay income tax on profit, and you will pay income tax on your salary. If you start making more that $900 per month (in most states) you will be expected to estimate your quarterly profit and pay income tax quarterly. Your local probate judges office can help you set that up.
     

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