paying taxes?

Discussion in 'Business Operations' started by Kingbman1, Nov 25, 2004.

  1. Kingbman1

    Kingbman1 LawnSite Member
    Posts: 176

    Im going to maintain about 12 yard next year and many people are telling me i wont need to pay taxes as long as they pay cash or make the check out to me personally. Then theres people telling me i need to pay taxes no matter what. please help
     
  2. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    Yes you have to pay taxes! Set up a metting with an accountant and build your business right. Its easier to start by being legit than it is to be in business for years then trying to go legit-you get use to the"unlegit" money.
     
  3. out4now

    out4now LawnSite Bronze Member
    from AZ
    Posts: 1,796

    Pay the taxes. And do get an accountant. If you plan to make the biz your career then get a lawyer as well asn draw up contracts so you have something for court in case you get stiffed for a job. You'll have to have insurance as well but at least you're covered. An attorney may also be able to help you determine the best form of biz for you as well depedning on your future plans.
     
  4. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Legally yes! but lets be honest and admit that cash is untracable, and checks made out personally can come from selling a piece of junk. The trouble is when you get those same checks every wk. then its gonna be real hard to explain to the irs. :blush: Do it right

    Mac
     
  5. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    Well it depends on your ethics if you pay taxes on cash. What you do now can determine your ethics the rest of your life. If you cheat on taxes than what else will you start cheating on and start justifying it by saying that others are doing it.

    Don't worry about what a few bad apples are doing.

    Pay your taxes and take the maximum expense deductions you can to reduce the taxes. Account for all income and you won't have any worries at audit time if there is ever an audit.
     
  6. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    Being new in the business I was wondering if we get audited more than others. I've never been audited in 18years. Now that I am a LCO does my odds go up? What's your experience?
     
  7. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    DLS1 So your trying to tell me you never took that $30 bucks cash and just bought the guys lunch with it or spent it on gas???? If you answer yes then you need to see the pope and be granted saint hood becouse I don't believe it. The yrs to long to remember every penny that you take in.

    Mac
     
  8. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    Yes that is what I am saying. I have one customer that has always paid me cash and it gets reported. It is sad that you can't comprehend there are people who report ALL their income. :dizzy: :dizzy:

    How far have you slipped to the dark side? There is still hope for you.
     
  9. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    if I remember correctly, you do not HAVE to pay taxes if you make under $2,000 for the work. I could be wrong, they could have changed it recently though. That was about 6 years ago.
     
  10. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    I have not slipped to the dark side.And I don't try to BS everyone! And I'm sorry I'm not talking about 1 customers cash or are you running just a small little business. So you never recieved a tip and pocketed the few dollars? Sorry I don't buy it. And if it is true then your the only one that has not forgot that you got payed in cash for a change order or some other little thing and just stuck it in you pocket with your other money and forgot about it. Intentionally or not.

    Mac
     

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