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Sole Props.

Discussion in 'Starting a Lawn Care Business' started by Clear-Cut, Jan 16, 2007.

  1. Clear-Cut

    Clear-Cut LawnSite Senior Member
    Posts: 481

    i was originally going to register as an LLC but i made the choice to go the sole prop. way for now

    one question with this. how do you pay yourself? you just right a check to yourself? or do you need payroll software and what not?

    please dont reply saying register as an LLC...i made the decision of going with sole prop because it is easier and i am only doing this part time right now.

    thanx in advance,
  2. vkurt711

    vkurt711 LawnSite Member
    Posts: 32

    Typically, you write a check to yourself from your business account and show it as an "Owner's Draw" or something similar. You do not withhold taxes on a draw. You should pay quarterly taxes via a 1040-ES though. When you fill out your schedule C when doing your federal taxes, it all gets sorted out. Having an accountant to offer real advice and take care of tax forms and other issues isn't a bad thing. I don't have one, but it still isn't bad if you do.
  3. hackitdown

    hackitdown LawnSite Silver Member
    Posts: 2,505

    I do exactly as above. It is really easy. I have a special checking account with my name d/b/a my company name. I also have a charge card set up the same way. I charge everything, and pay the charge off monthly with a check. I write myself checks monthly or so with whatever is left.

    I deposit the checks in my other joint (with wife) bank account so she can spend it all.
  4. Clear-Cut

    Clear-Cut LawnSite Senior Member
    Posts: 481

    sounds easy enough. thanks..

    one more question. do you HAVE to file quarterly or can you choose to file yearly? if i can avoid doing taxes during the busiest time of year that would reduce a little stress lol

    haha..that made me laugh...good thing i dont have one of those yet :drinkup:
  5. crzymow

    crzymow LawnSite Senior Member
    from Pa
    Posts: 378

    you might get away with not filing quarterly right now because you are part time and if you have a full time job then you are having taxes taken out. If I were you, I'd have extra taken out from your full time job so you wont have to pay as much at the end of the year, just a thought.
  6. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    You shouldn't have to pay quarterly taxes doing this P/T. But definetly get a seperate business account!!!!!!!!!!!!!!! makes life a whole lot easier.
  7. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    With an LLC you would also just draw out what you want to take out. This is because all of the profits of the LLC pass directly to you when you file your tax return. Talk to an accountant.
  8. Clear-Cut

    Clear-Cut LawnSite Senior Member
    Posts: 481

    i dont have a fulltime job..im in college thats why this is only part time for me

    im going to talk to my accounting professor about it, who is a certified CPA

    thanks for the info
  9. Stillwater

    Stillwater LawnSite Platinum Member
    Posts: 4,834

    If you do not go LLC you are far more at risk if you are sued, your personal finances cars trucks homes will be up for grabs, I could be wrong though if anybody knows let me know on this
  10. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    Yes corporations do give you liability protection if you do things correctly. The tax advantages are much better for a sole prop and you can usually get enough insurance cheaply to cover your exposure.

    Also as a college student you probably don't have much to come after, you know the old saying "you can't get blood from a turnip" or was that a stone? Just get a good insurance policy and stay a sole prop for as long as your accountant and lawyer agree it is OK.

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