Insurance, taxes????

Discussion in 'Starting a Lawn Care Business' started by Birddog Lawncare, Jan 21, 2004.

  1. Birddog Lawncare

    Birddog Lawncare LawnSite Member
    from Ohio
    Posts: 73

    This will be my first year in business. I already have a few jobs lined up. I only plan on a max. of about ten accounts. Mainly I will be a mowing operation with cleanups and mulching in the spring. Most will be residential jobs. I do have general liability insurance lined up for $1 million.

    My questions is taxes. Is it worth it to hire a CPA? Are LCO's able to bid on commercial accounts and have insurance and still get paid under the table? By time you write off all of your equipment (truck payment, trailor, mower, ins, and etc.) How do most small time one operator outfits do for themselves?

    Any advice is appreciated.
     
  2. chevyman1

    chevyman1 LawnSite Senior Member
    Posts: 852

    only 10? just do it under the table man and have your folks pay in cash or make the checks to cash
     
  3. DAZED AND CONFUSED

    DAZED AND CONFUSED LawnSite Member
    Posts: 29

    THINK SMALL BE SMALL

    MY ADVICE IS SET UP YOUR INSURANCE BASED ON WHERE YOU WILL BE IN 5 YEARS SINCE IT IS PERFECTLY LEGAL TO SHOW A LOSS ON YOUR SCHEDUAL C FOR 5 YEARS ONLY CLAIM YOUR NON CASH ACCOUNTS
    A CPA IS AGOOD CHOICE BUT WITH THE COST OF A GOOD ACCOUNTING PROGRAM AROUND $300.00 I WOULD OPT FOR THAT INSTEAD WIL SAVE YOU THOUSANDS OVER THE LONG RUN AND HELP YOU TO BETTER MANAGE YOUR GROWING COMPANY
    GOOD LUCK
     
  4. howie099

    howie099 LawnSite Member
    from Chicago
    Posts: 8

    I am just starting my self the insurance for contracts was $350 a year for landscaping/plowing w/some coverage for equipment. For the CPA I am getting one just because I do work for him now(computer work) and I realy do not have the time now to mess with the taxes, some payroll and filing the Incorporation papers. I think it is better to have someone help with this stuff because errors in this can be very costly later on.
     
  5. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I would go to the CPA for advise, but do the books yourself, saves a lot of money.
     
  6. missytheaccountant

    missytheaccountant LawnSite Member
    from Bama
    Posts: 45

    Well since I am an accountant, I would love to tell you to hire a CPA--but the truth is with no more business than you have at the moment I would handle the "books" yourself. If you can write checks, make deposits, and balance your checkbook, you are able to do what the accountant would do during the year. My advice to you is to let an accountant prepare your taxes for you. They stay up to date on all the new tax laws as well as tax breaks available to you. Did you know that you can depreciate up to $100,000 of assets used in your business the first year you purchase them? Of course, there are limitations. My advice in short---seek tax advice from an accountant and keep the books yourself.
     

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