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New business questions

Discussion in 'Starting a Lawn Care Business' started by warriorlawn, Aug 18, 2013.

  1. warriorlawn

    warriorlawn LawnSite Member
    Posts: 18

    I have about 30 residential yards that I am currently servicing and just bought my 1st zero turn mower (Scag 52" Tiger Cat). I have a small trailer and it is clear that I am going to need to upgrade my trailer soon as the new mower is too heavy for my old trailer. If you can recommend a place to buy a trailer in the Southeast (Alabama, Georgia, Tennessee, Mississippi, North Florida), please let me know.

    Is it possible to get a small business loan for the trailer and several other equipment items that I need? Does anyone know of a place that gives small business loans that you would recommend?

    I am also looking at getting my driveway at home repaired because it is is very, very bad shape and I need a place to park my trailer. I would have to get my driveway widened to fit the trailer on my driveway. I got a very good price on this ($2200). Is this a legit business expense if I were to get audited?

    When I file my business taxes, how do I claim a loss? If I claim a business loss, will this loss be deducted dollar for dollar from my personal income?
  2. TTS

    TTS LawnSite Senior Member
    Posts: 615

    It's doubtful that you will get a small business loan, for large items you can probably get financing from the manufacturer but a bank will want to see several years of profit and loss statements and showing a loss is not a good way to convince them that you're a good risk.

    The rest of your questions you need to talk to an accountant. Each state has their own rules and how your business is set up will also affect everything that an accountant who knows the rules and can see your actual hard numbers would be the only way to get a reliable answer.
  3. foreplease

    foreplease LawnSite Bronze Member
    Posts: 1,939

    Start by filling out Form 1040 Schedule C for the current tax year. Take a look at the form now so you have an idea of how one thing affects another. In the end, if your expenses exceed your income that result will be shown on this form. From there it tells you where to place this number on your personal income tax return Form. 1040.

    I am not an accountant but I believe the answer to your dollar for dollar question is: it depends somewhat on the source of your other income. Earned income, such as from a W-2, I believe can be offset dollar for dollar. For investment income I *think* there are some exclusions which could limit the extent to which a business loss can offset income. I believe any unused business losses can be carried forward to another tax year. You will need a tax preparer or accountant if you are unable to accurately complete these forms yourself. If you think that will be the case, talk to somebody about these questions before the business activity takes place, or as early the tax year as possible.

    Good luck with your business and getting answers on your other questions.
    Last edited: Aug 19, 2013
  4. Sprinkler Buddy

    Sprinkler Buddy LawnSite Bronze Member
    from Florida
    Posts: 1,187

    Buy a good used trailer. Save $$$ and get your drive way fixed.
  5. No Weeds Left Behind

    No Weeds Left Behind LawnSite Member
    Posts: 119

    Agreed.... I traded a gun for a trailer straight out came out on top too. I don't recommend debt unless it is just a a big need or a really big purchase. with 30 acts though a trailer and other items shouldn't take too long to purchase.
  6. Mass Lawn Care

    Mass Lawn Care LawnSite Member
    Posts: 2

    Hey guys new to lawnsite.com, I bought out a landscaping company 2 years ago still learning lots. I'm open to thoughts and opinions. I have a question too, when installing beach rock/stone (river rock) how much do you charge per lets say yards installed? I'm having a hard time trying to find a happy medium. Ps link is what beach stone/rock or river rock looks like.

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