Tax Question!!!

Discussion in 'Starting a Lawn Care Business' started by TCZellars, Mar 26, 2008.

  1. TCZellars

    TCZellars LawnSite Member
    Posts: 21

    want to start a business. got 1 mill in liablity, full auto insurance (collision, theft, liability) and my equipment is covered all for 1800 a year, now lets say i can make 10,000 dollars this year, i pay 1800 for insurance, which gives me 8,200, what taxes do i have to pay and out of my 8200 dollar profit, around how much will i have left?
     
  2. kleankutslawn

    kleankutslawn LawnSite Bronze Member
    Posts: 1,185

    talk to a accountant.you will take a lost the first couple years
     
  3. cgaengineer

    cgaengineer LawnSite Fanatic
    Posts: 15,782

    Count on about 1/3 going to your Uncle Sam. And as the other poster said, you may want to talk to an accountant.
     
  4. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,298

    Well for stsrters you dont have $8200 profit. You have to pay for the phone , fuel , truck repairs and registration. Uniforms ect. Like the other guy said , get a good accountant.
     
  5. Atlantic Lawn

    Atlantic Lawn LawnSite Senior Member
    Male, from Outer Banks NC
    Posts: 939

    If thats all you make in a year and You are an adult, I don't think you owe anything, I'm amazed your even able to eat.
     
  6. David Grass

    David Grass LawnSite Senior Member
    Posts: 485

    You will always pay if you are self employed, because it goes on form C, and SE (social security). Your social will be around 15 percent after a little deduction maneuver over on form 1040, and you WILL ALWAYS PAY THIS, even if you show a profit of 400 bucks (under then maybe not). Then run the amount on form C, after your standard deductions or itemized deductions thru the tax table and it will tell you the Federal tax, on top of that social security tax. Dont forget now, in most states, you get to pay them something too!!! Most of us are eaten up with the social security.
     
  7. cgaengineer

    cgaengineer LawnSite Fanatic
    Posts: 15,782

    He could be part time, and if he is at least he has insurance!
     
  8. J&R Landscaping

    J&R Landscaping LawnSite Fanatic
    Posts: 5,096

    You might end up grossing 10k but after your expenses your not gonna be bringing home to much... I would find a good accountant like others have said.
     
  9. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,739

    Anyone know what the current deduction for mileage is? Im thinking its over .50 cents?
     
  10. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,739

    Bump... anyone know the current deduction for mileage?
     

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