No Tax ID number for this type of work

Discussion in 'Heavy Equipment & Pavement' started by 4 seasons lawn&land, Mar 25, 2012.

  1. 4 seasons lawn&land

    4 seasons lawn&land LawnSite Gold Member
    from NY
    Posts: 3,594

    I was thinking of starting a 2nd biz without a tax ID number so I dont have to get all the capital improvements forms for non maintenance work. Right now I have to file my sales tax with half of my gross sales as non taxable sales which is going to get me audited sooner or later. And then I'll have to come up with all of my reciepts for materials and invoices for improvements. Even then, lets face it, they WILL come out on top unless Im an attourney and Im not. So does anyone here not do the tax ID # at all or otherwise just keep seperate companies for taxable and non taxable sales.
     
  2. AEL

    AEL LawnSite Bronze Member
    Posts: 1,725

    Why don't you hire a really good chartered accountant?
    Posted via Mobile Device
     
  3. easy-lift guy

    easy-lift guy LawnSite Gold Member
    Posts: 3,376

    You will not be able to start another business without another FTID# or run under your SS#. When you go to a bank, any bank you will be required to produce either an existing FTID# or create a new one or run under your SS#.
    If you try to start this 2nd business under existing banking accounts the business will be under what ever the bank has on file, unless you have a new FTID#. Pretty cut and dry, of course I would contact an accountant since he or she may know better.
    easy-lift guy
     
  4. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    This is NY you know if try crap like that ,they will be sitting next to you at the dinner table as you try to explain it to them.Just start another company with ID# and open a separate bank account so you don't commingle the money. Even if you don't collect sales tax you still need to file a sales tax form anyways.
     
  5. 4 seasons lawn&land

    4 seasons lawn&land LawnSite Gold Member
    from NY
    Posts: 3,594

    Im not "trying" anything. There are plenty of businesses without tax ID numbers. I know an excavation guy that doesnt have one and he doesnt file sales tax. His lawyer advised him that if he doesnt need to charge sales tax then dont get involved with it.
     
  6. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    Look at step 1,you must report all gross sales including exempt sales. I have a church I plow ,I have to put in the sale from it but don't pay tax on it.
     
  7. 4 seasons lawn&land

    4 seasons lawn&land LawnSite Gold Member
    from NY
    Posts: 3,594

    Thats because you have a tax ID. If you didnt you wouldnt be filing sales tax returns.
     
  8. YellowDogSVC

    YellowDogSVC LawnSite Gold Member
    from TX
    Posts: 3,754

    I am not sure how NY works but in Texas there are plenty of services that are not required to charge sales tax so they don't need a number. This is from the state's website and front talking on the phone. The problem is, if you do ANY service that is taxable at any time as a business, then you need a permit if you earn more than 5k a year in your business.
    Now, if you started a separate biz that did under 5k here, (i think that is the number), I imagine you could do it without a sales tax permit but you would still need to file income tax but that's a separate issue.
    It is a pain in the arse. A number of my competitors don't charge tax on taxable jobs. It's not fair and will catch up with them as the states try and level the playing field. I would research this carefully. The state comptroller has a lot of power to levy fines and seize bank accounts without a lot of notice. In Texas, I think there is a new law that went into effect January 1st that makes it a felony to evade sales tax by not getting a permit. I know the amount wasn't very much so it might be better to be safe than sorry. It just sucks all the way around to be in business. I hate the paperwork and I don't like paying my $2k every year to my county for taxable personal property used in the course of business.. It's not fair if you're an honest man...
     
  9. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    Then are you filing income tax?
     
  10. 4 seasons lawn&land

    4 seasons lawn&land LawnSite Gold Member
    from NY
    Posts: 3,594

    I believe in NY, if you dont need to charge sales tax then you dont need a sales tax ID number regardless of gross sales. Any taxable service can be Invoiced under my current company
     

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