Is this legal?

Discussion in 'Starting a Lawn Care Business' started by quadracer_13, Jul 26, 2008.

  1. quadracer_13

    quadracer_13 LawnSite Member
    Posts: 50

    Like I have said in a couple threads already I am tryin to start a business. I was wondering if I could go ahead and get my DBA and federal tax ID number along with all my licenses and stuff now but not actually start doing lawn care til next spring. Is that legal or will i have to show profits or anything on this years taxes? any info on what to do or who to ask will help! thanks
     
  2. Hortus

    Hortus LawnSite Member
    Posts: 72

    As mentioned in those other threads, set up an appointment with a reputable accountant and/or lawyer as to the best plan of action for you, within your particular state's requirements. The most important step in building a business structure, is to file the right business type in the beginning, since future step ups in filing will be based on how you originally filed your business as.

    In general, getting the formalities worked out (business account, business contact info, building business credit history, etc.) before your spring deadline, shouldn't be a problem. But again, this is what accountant/lawyers and getting familiar with your state and local regs will best answer your questions.

    Another optional source for information, support and assistance for your business needs is to look up the various payroll companies out there. There a huge benefit for small solo, 1-20 employee companies.

    Good luck with it all.
     
  3. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    I'm not disagreeing with the first reply but to answer the question, yes as far as I know what you speak of is perfectly legal because it is the opposite of what you speak of that isn't (and hope I'm right lol but I really think you'd be fine).
     
  4. moose203

    moose203 LawnSite Member
    Posts: 122

    The only thing i see is you will have to pay property tax on your equipment for this year. that is the way it is in TN anyway. You might want to get you business lic. Jan. 2nd to avoid this

    Jason
     
  5. quadracer_13

    quadracer_13 LawnSite Member
    Posts: 50

    Alright thats what I was looking forward to hearing. But just incase I will check with an accountant/lawyer. thanks for the input
     
  6. mngrassguy

    mngrassguy LawnSite Silver Member
    Posts: 2,167

    You have to pay property tax on your equipment? Never herd of that. That would suck. Glad I don't live in TN. I wonder if any other states do that. How much is it?
     
  7. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    be carefull doing this, it's NOT a good ideal, you can only claim a loss for 3 years.

    there used to be a "START UP" type tax break, most people now purchase a lot of equiptment with in the 1st 3 yrs, showing, or rather trying to show a loss for the year.
     
  8. quadracer_13

    quadracer_13 LawnSite Member
    Posts: 50

    what happens if you show a loss for more than three years?
     
  9. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    Woops sorry I was thinking about something else
     
  10. moose203

    moose203 LawnSite Member
    Posts: 122

    it is a percentage of your total business assets, any thing from your trucks and large equipment all the way down to hand tools. different assets have different tax value. your business licence renewal from year to year depends on your assets. 100,000.00 in assets on average will will be around 350.00 renewal for the following year. depreciated value and other factors come into play. if you don't buy any new equipment from year to year your renewal will be less from year to year. Hope this helps a little. one more thing also we don't have a state income tax ether

    Jason
     

Share This Page