Partnerships

Discussion in 'Business Operations' started by seasonal services, Apr 29, 2004.

  1. seasonal services

    seasonal services LawnSite Member
    from ohio
    Posts: 32

    I am in a partnership and this is our 1st year in business and I was wondering how everybody does there payroll. We have a business checking account and what we have been doing isnt working out too well. Question is, is how do you guys do it that are in partnerships. What we did or still do now is say we get a check for $75, we take that then multiply the amount of tax (7.25%) then multiply 20% Which equals $20, we put that in the business account then we split the remainder which is $60 so we would each get $30, I know this cant be a good way to do it how do you other partnerships do it or how did you do it 1st starting out.
     
  2. twins_lawn_care

    twins_lawn_care LawnSite Senior Member
    Posts: 932

    I'd say if you're first starting out, here's what you do...

    Take the $75 check and put it in the bank, and leave it there!

    You have to be serious about the company, and have to re-invest in it if you want it to grow. Especially starting out, you need to try and save every penny. If you don't, all you are doing is creating a "job" for yourselves, and not a business.

    If you are just mowing to make extra money for the weekend, no advice on here is really geared towards that.

    What are all your expenses, and how are those getting paid if you take all of your $60 left and split it up?
    You still have to pay for INSURANCE, licenses, gas, equipment, gas, and anything else that comes up. Plus, come tax time, you have to make sure to have enough to cover it, otherwise April 15 will not be such a good day.

    Maybe you can add a little more description of your guys setup, so we can try to help a bit more. The key is you want to make sure you get the most out of your business at the end of the year, and not put in all that hard work to be disappointed.
     
  3. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi seasonal services,

    twins_lawn_care made a lot of great points. Another thing you could consider is gathering a list of such questions and visit a local CPA. You can then get some solid advice to start you off.
     
  4. CNE

    CNE LawnSite Member
    Posts: 238

    Put everything in the bank and write yourselves a paycheck out of that. Decide what is a fair weekly salary and stick with it. The only way to grow is to invest back into the company.
     

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