Need help with insurance/taxes

Discussion in 'Starting a Lawn Care Business' started by kc2006, May 3, 2004.

  1. kc2006

    kc2006 LawnSite Silver Member
    Posts: 2,442

    i have some questions on insurance and tax issues.

    I live in ohio and I'm doing lawn care more like part time as i still work for a company but do this for extra cash. Right now i'm going for 15 lawns a week all residential, I figure since i don't have that many lawns and no one works for me the odds of me needing insurance (needing as in something happening) aren't that great, so are there any laws that can get me because i don't have insurance? I will get insurance sometime this year once i start advertising more and I'm doing it full time. Also I'm going to keep track of income and put it on my taxes at the end of the year like i would if i had an actual business. I want to go legit but its useless right now until I'm on my own full time :confused: just worried about stuff i guess. Thanks for the help
  2. missytheaccountant

    missytheaccountant LawnSite Member
    from Bama
    Posts: 45

    Laws vary from state to state. Insurance is only good when you need it. I'm a firm believer in it. As far as taxes go, it matters not whether you are in business full time or not. To Uncle Sam, you are liable regardless of how much business you do. The trick is to find expenses to offset the income so you don't have to pay taxes on as much. If there is anything in particular you are curious about, ask, and I might can help you out. Good luck!!
  3. LawnScapers of Dayton

    LawnScapers of Dayton LawnSite Silver Member
    Male, from Dayton, OH
    Posts: 2,574

    I am part-time and have insurance, (1million/2 million General Liability). My company is an LLC (Limited Liability Corp.) In Ohio you have to collect sales tax for lawn care/maintenance/landscaping. I have close to that same number of accounts.

    Even a part-timer can be involved in an incident that could cause you to lose everything (read:-> EVERYTHING).....if you are found neglegent, etc.....

    Even though nothing is 100%, Get the insurance......that's my .02

  4. Kevin7

    Kevin7 LawnSite Member
    Posts: 7

    I suggest the insurance myself even thought some guys don't recommend it in my area. THey say it's too costly but I've found some reasonable rates by shopping around....
  5. DJL

    DJL LawnSite Member
    Posts: 237

    Do yourself a favor and visit with reputable insurance agents and accountants/tax advisor's. Listen to the responses here as a guideline, at best.

    As far as the "ODDS" comment. I don't like any odds (no matter how low on paper) of the possibility of someone taking my house from under me and my family.
  6. mjoaaa

    mjoaaa LawnSite Member
    Posts: 34

    I tell you what... The one time you have to fork at the money for a rock hitting a car window, you'll wish that you had insurance. The place I used to work had a huge commercial account (big energy company) and a rock busted the complex window. You know the big tower buildings with 3 story high windows mirrored on the out side. An $8,000 dollar window! How would your year end profits look then. Car windows are expensive, repairing home windows, dents in cars, etc. Oops you didn't see that Japanees Maple that cost $800 and weed whack the heck out of it. Bottom line have it when you can get.

    As far as taxes Uncle Sam does not require you to file if you made under a certain amount. Just because you 15 lawns a week at $10 a lawn doesn't mean you made a $150.00. Mileage, gas, blades, equipment depreciation, etc. will all determine your adjusted gross income. Of course I am not a tax advisor, but would HIGHLY recommend talking with an accountant and KEEPING GOOD RECORDS.

    PS: Your home computer if done for billing, routing, etc may be deductable along with the square footage you use out of your home to perfom business related tasks. Ask your tax person about these benefits too! Good luck and remember I am NO ACCOUNTANT!
  7. club54

    club54 LawnSite Member
    from alabama
    Posts: 23

    the big jobs u must have INSURANCE LIKE FOR CENTRY21
  8. kc2006

    kc2006 LawnSite Silver Member
    Posts: 2,442

    I called up a business development help center the other day and he said theres no required amount but he highly recommended it, he said to get as much as i can afford. I also asked about the service vendors license you need in ohio to collect sales tax, and about getting the name for the business and he said all the information and booklets for taxes would come when I get the name.

    Another question, my family used to own a pizza shop and my parents had to pay an estimated amount for taxes, and most of the time it was way higher then what they really should have paid, so my parents think I won't make it doing this because of this estimation system. I told them that you dont estimate it, its based on how much you bring in. Am i correct? Also as a sole proprietership you only pay one time a year right?

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