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legal/under table? get real

Discussion in 'Business Operations' started by outrunjason, Feb 10, 2002.

?

Do you operate Legal or under the table?

Poll closed Feb 17, 2002.
  1. Legal

    44 vote(s)
    84.6%
  2. Not legal

    8 vote(s)
    15.4%
  1. outrunjason

    outrunjason LawnSite Senior Member
    from dallas
    Posts: 695

    Well I am going to be leagal this year. Just not yet. I was not last year because I planned to do it part time and the next thing I know I was working full time at it. NO all legal this year. But I was worried they would decline me. I wish they looked at it the way you do. That I am not a bad person and doing something good.

    Jason
     
  2. thartz

    thartz LawnSite Senior Member
    Posts: 486

    Anytime your trying to better yourself as a person; your doing something good
     
  3. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    Just plead your case and hope they give you a chance. Heck, you might be worrying for nothing. It may have nothing to do with it at all. Keep us posted.:)
     
  4. Mykster

    Mykster LawnSite Senior Member
    Posts: 668

    Sooner or later you'll get caught and have to pay fines up the #ss if you do it illegally. Few guys in my area are no longer in service for that very same reason. Keep it legit.
     
  5. mikey

    mikey LawnSite Member
    Posts: 81

    hey
    starting out this summer and wanted to know all the legalities
    and that stuff..i am gonna be legit this spring..So i wanted to know what i would have to do to make me legit?He told me that all i need to do is get liability ins. and claim my trruck as a part of my business.Then i asked well "what about my tax id# and he said that i dont need a tax id cuz....First of all i wont be laying down any fertilizer til i get my liscence and i wont be removing any huge trees..so he told me if i was that i would need a tax id or DBA #.and ill be the only employer so i ll be a sole proprieter
    and when i start doing fertilizer and tree removal that i need to get a tax id or dba#..So when i do my taxes nest yr ill claim all
    things that pertained to my business....its better not to screw Uncle Sam cuz when hebites back he put u in the whole for years
    hope this helps,if anyone knows anything different or what i was told is right please let me know?
     
  6. LawnLad

    LawnLad LawnSite Senior Member
    Posts: 738

    If you aren't legit... wait until a cash employee injures themself on the job and they go to the hospital. First thing they ask when they check you in, "Was this injury work related?" And if they say yes... duck.

    Or you or one of your employees is in a vehicle accident with commercial equipment on a trailer behind you. Let's see, you'll get sited for not having commercial plates, your insurance company will decline to cover you since they state that a 'residential' policy does not cover commercial work. Now you've got someone suing you for medical, liability, whatever and you have no coverage and they're going after you because they think you've got deep pockets. Because of course, you're a business and you've got money to spare, right?

    Or lastly, you or an employee throws a rock with the mower, line trimmer, etc. and you break a window, hit a passing car, hit the neighbors dog/kid... who's going to pay for that?

    Oh wait... one more. Some former employee reports you because they're ticked off at their girlfriend... or you. The Bureau of Employment Services is auditing you and of course they find out you're not legit. The person who reported you isn't going to be in trouble with the IRS since it's annonymous. But you'll be paying for it for years to come.

    If you aren't legit... it would be best to not hire anyone. Just do the work yourself. You can still report your income/expenses on a Schedule C. My bet is that if you bothered to track it, you'll come up with more write offs than you will expenses - particularly when you're small and starting off. So you're better off to be legit anyways.
     
  7. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    Well put LawnLad!!!

    MATT
     
  8. Jason Pallas

    Jason Pallas LawnSite Bronze Member
    Posts: 1,325

    Lawnlad - I coudn't have said it better. Good Job.
     
  9. proscapeINC

    proscapeINC LawnSite Member
    Posts: 14

    My business is on the table not under it .If your expecting to get some good accounts that bring a decent profit. You'll have to be on the table ready to eat and not under it looking for scraps.
     
  10. PAPS

    PAPS LawnSite Senior Member
    Posts: 404

    Incorporated... Workers Comp... Insurance out the.... Health care...you name it i have it (although, sometimes i wish i didnt)...

    Like LawnLad said... wait til an employee pull some stuff on you if your paying him CASH.... then he will take you for all you have... just not worth it to me to risk something I spent so much time and effort building... When a potential employee asks me to pay him CASH... i tell him sorry... i dont run that kind of operation here guy.;)
     

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