Sales Tax

Discussion in 'Starting a Lawn Care Business' started by coolmc11, Nov 9, 2007.

  1. coolmc11

    coolmc11 LawnSite Member
    Posts: 18

    In new jersey you charge taxes for mowing a lawn or doing landscaping right? So do u tell the costumer the total cost with tax included or without tax included..Its just 7% Right??? Thanks
     
  2. Roger

    Roger LawnSite Fanatic
    Posts: 5,927

    I am not from NJ, but I would think the NJ Dept of Revenue would require you hold a license to collect sales tax monies. Have you made an application for a license? When getting your license you will learn what services are taxed and what services are not taxed, and the rate you are to include with your invoices.

    Your question needs to be directed to an agency in the state who is charged with the responsibility to manage tax collections.
     
  3. maintenanceguy

    maintenanceguy LawnSite Member
    from NJ
    Posts: 156

    Whenever I buy anything in NJ, the price advertised does not include sales tax. Sales tax is added on at the cash register.

    And in NJ, you do have to register with the state to collect sales tax but there is no training or tax guide as part of the process.
     
  4. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    the invoicing software should do this for you, but when quoting just give the total including tax.....
     
  5. M&SLawnCare

    M&SLawnCare LawnSite Senior Member
    Posts: 304

    Yes you need to charge sales tax for mowing in NJ. You need a certificate from the state to collect it which is easy to get (just a simple check mark when you set your business up with the state and they will mail it to you).

    I include tax in all my quotes to make it easier. So a 40$ lawn i actually charge 37.38$ which comes to exactly 40 when tax is factored in. Most of my customers pay cash so it just makes it much easier on us both.
     
  6. TLS

    TLS LawnSite Fanatic
    Posts: 7,937

    You tell the customer YOUR price for mowing. The tax is added after, and I rarely disclose in a bid that I charge tax. Most are used to it by now.


    If the price for the lawn is $40, it's $40 for me and then $2.40 added on for Rendell. I'm not taking tax out to make it an even $40.
     
  7. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    but didnt say it as well...
     
  8. coolmc11

    coolmc11 LawnSite Member
    Posts: 18

    Are taxes due quarterly. I heard they where going all electronic. and do we as business owners have to pay uncle Sam any other taxes? State or anything?
     
  9. maintenanceguy

    maintenanceguy LawnSite Member
    from NJ
    Posts: 156

    In NJ, businesses collect sales tax and remit that tax to the state quarterly.

    As a self employed person, you have to pay all the federal taxes that an employer would pay if you had one such as SSI, FICA, and whatever else there is, they call it the "self employment" tax. It's about 15% of what you make.

    Then you have to pay income tax to the state and the federal government. Again that's a quarterly payment. Depends on your income but starts at another 15% of income roughly.

    So make sure to save at least 35% of what you bring in to send away to the govt every quarter.

    I've had several businesses over many years. I'm just an employee now. I hated sending that check every 3 months. I would be furious for weeks.
     
  10. Young Bros

    Young Bros LawnSite Senior Member
    Posts: 660

    I went to legalzoom.com and incoporated my company. My state is now sending tax id and such.
     

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