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Michigan LCO's

Discussion in 'Network: Central' started by tiedeman, Sep 4, 2003.

  1. Eclipse

    Eclipse LawnSite Bronze Member
    Posts: 1,149

    Maybe I will put for sale items here since maybe some local exposure will help sell these things.

    I am selling a:
    Olathe 48" High Lift Turf Sweeper: http://www.lawnsite.com/showthread.php?t=167391
    60" Turf Trace with 23HP Kohler and ECS controls: http://www.lawnsite.com/showthread.php?t=175861

    I think these will be heading to auction on the 10th of March so if you are interested please contact me. I would be willing to help with delivery if someone is interested.
  2. Mower For Less

    Mower For Less LawnSite Senior Member
    Posts: 823

    What are you selling that you need a sales tax license?

    If you are filling out form 518, I used catagory 073 for my Michigan Business Taxes registration, which corresponds to: "Horticulture Services, Landscaping, Tree Trimming, Mowing, Snow Plowing, etc."

    Seemed to be a pretty good fit... Whoever gave you that advice on being a garden center is clearly not familiar with this correct classification.

  3. terrapro

    terrapro LawnSite Bronze Member
    Posts: 1,234

    mulch, plants, soil ammendments, fertilizer, etc....

    anyone that sells anything for a profit needs to have a sales tax license and place the license in plain view of business area. i have a feeling i might run my business differently than most here. i purchase items at wholesale than markup to whatever i want then charge my customer the 6% sales tax a time of sale.

    i am filling out the e-form version of 518 which does not let you place a category# in the field. 073 is an exact fit for what i need but they give you options to select and none of them are that.
  4. Eclipse

    Eclipse LawnSite Bronze Member
    Posts: 1,149

    I don't think most guys mark up the actual price of the item :) The price increase over cost is all labor. Isn't this how most view this?
  5. terrapro

    terrapro LawnSite Bronze Member
    Posts: 1,234

    yeah that is what i figured. its just seems easier and more productive for me to do it this way. say i purchased a 6inch mum for $12 wholesale but if my customer goes to the store to buy one it would cost them $18. so i charge them the $18 because i want that $6 in my pocket not the stores. thats what i have my nursery stock license and sales tax license for so i might as well put them to use
  6. bigjeeping

    bigjeeping LawnSite Senior Member
    Posts: 903

    Asked my accountant this last season:
    If you buy mulch and pay sales tax on it, and then use the mulch in a landscaping job for a customer you DON'T collect sales tax on it. You simply pass the cost on to the customer in your estimate.
  7. Mower For Less

    Mower For Less LawnSite Senior Member
    Posts: 823

    I do not itemize material costs on my jobs. When I invoice a customer, it is one price that covers materials, labor, and profit. Billing in this fashion does not require sales tax to be collected. I pay the sales tax on materials as I buy them, and roll those costs into the job.

    518 is a fairly simple form to fill out, why not just do it longhand so you can get the correct classification? Or, there is a PDF version on the State website that allows you to manually enter all the fields, then print it out all filled out.
  8. terrapro

    terrapro LawnSite Bronze Member
    Posts: 1,234

    yes you can do it that way, if you do not mark up the mulch up when you sell it.
  9. terrapro

    terrapro LawnSite Bronze Member
    Posts: 1,234

    thanks for the info, i think ill try the PDF version
  10. Five Star Lawn Care LLC

    Five Star Lawn Care LLC LawnSite Bronze Member
    Posts: 1,005

    you wouldnt happen to have a phone # would you?

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