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Ohio LCO'S and state tax?

Discussion in 'Starting a Lawn Care Business' started by daveintoledo, Mar 23, 2005.

  1. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    So i guess lawn care is taxible in this state, i have the paper work to file for a vendors licence, how do you handle this expense ?
    Do you add the tax on the customers bill, or do you adjust your pricing so they dont get bothered with a 48.35 bill instead of 45.00

    thank You for any help
     
  2. KERRTURF

    KERRTURF LawnSite Member
    Posts: 129

    Yes, our famous governor decied to make all kinds of services taxable that didn't use to be!
    I think the smart thing to do is determine your price and bid the property at X dollars plus applicable sales tax. Also remember that in OH, you have to collect sales tax in accordance to where the property is being serviced at. The rates change from county to county. If you include "applicable sales tax" to your estimate, you protect yourself from any future sales tax increases and also you make it easier to raise prices later on of you need to.
    Most customers know that the state requires sales tax on lawn service; if you make this same acknowledgement it sets you apart from the guys who are mowing for beer money.
     
  3. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    each county is different, and i read that if previous earnigs over 5000 then taxable the next year, this is my first year, so i have to guess what the income will be, because if its going to be over 5000 (and god i hope so) it will be due.. :realmad:

    thanks for the help, that is how i will handle it then..... i do want to be as professsional and above board as possible, might cost me now, but in the long run it will pay off by being a legit business person and not hiding from the gov as some do hahahahh
     
  4. kootoomootoo

    kootoomootoo LawnSite Platinum Member
    Posts: 4,369

    Nothing is easy. There is a bunch of stuff that is not taxable.
    For example Snow removal by non mechanical means is not taxable.
    Use a mechanical device and it is. :help:
     
  5. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    I read that too, isnt that silly, oh well who am i to judge, i just want to be legal.... thank you all for your willingness to share your expertise
     
  6. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,391

    on estimates we put the price "plus tax". people expect taxes, but something about seeing that additional 7.5% (for my county) on an estimate is more daunting than just the words.
     
  7. eshreve1234

    eshreve1234 LawnSite Member
    Posts: 184

    On estimates I always quote plus tax, and its listed on a separate line item on my invoices. The majority of people do not complain, I had one customer short me the tax, so the next job I did for him included 15%tax in the base price to cover the current and the previous job. But don't forget the generous discount the state of OH gives us for collecting this tax!
     
  8. Turbo

    Turbo LawnSite Member
    from midwest
    Posts: 18

    I will be glad when he is GONE (the gov.)
     
  9. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    you all are so much help, thank you very much, if i can ever return the favor i will...'


    dave :)
     
  10. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I am glad here in Michigan I don't have to tax services
     

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