Discussion in 'Pesticide & Herbicide Application' started by GreenHor7, Jan 23, 2007.

  1. GreenHor7

    GreenHor7 LawnSite Member
    Posts: 131

    I am new to the lawn care business, but since tax season is here i have a question regarding business taxes. If i make my company a "llc" because of lawn treatments. Will i have to pay a corporate tax. If so, HOW THE HELL DO YOU MAKE MONEY. You have to pay social security and medicare which is 15% alone. Then your ordinary tax too.
  2. cemars

    cemars LawnSite Senior Member
    Posts: 387

    You will probably get a number of answer to this, some good and some bad. My recommendation is to get a good accountant, mine cost me one year of free service to his house, his advise is worth much more. Tax season is not "here", tax season is all year long for small business owners. You will need to make quarterly estimated payments and make most decisions that will effect your tax liability before the end of the year. I will tell you that I am a LLC and do not pay any corporate taxes, tax wise it seems that there is little difference between an LLC and a sole proprietor. So there is your first response, maybe good....maybe not.

    DUSTYCEDAR LawnSite Fanatic
    from PA
    Posts: 5,137

    like what was said get a good acc and just look at it this way u pay biz tax and if u take a salary u pay a 2nd time lol have fun
  4. meets1

    meets1 LawnSite Gold Member
    Posts: 3,781

    Corps just aren't about taxes. There are other benefits that pretain to other parts of the laws.
  5. PSUturf

    PSUturf LawnSite Senior Member
    Posts: 663

    An LLC offers you slightly more protection from lawsuits than a sole proprietorship. At least that's what my lawyer told me. I did not have to pay corporate tax as an LLC.
  6. turf hokie

    turf hokie LawnSite Silver Member
    Posts: 2,744

    And an S-corp offers more protection than an LLC. But my accountant told me nothing is untouchable if you get sued by a really good attorney.

    The way you incorporate affects how you draw profit/salary out of the biz and how you report year end income. It is pretty involved and varies from situation to situation. You definately should consult and accountant at the very least.
  7. heritage

    heritage LawnSite Bronze Member
    Posts: 1,268


    Before you start your new business, meet with your/an Accountant as others tell here you.

    The Accountant will help you build your business plan.

    The questions you ask, as well as the comments presented to you by an Accountant, will minamize your chance of failure in Buiz. I for one would have failed without my Accountant AND I have over 20 years of exp. in how to help plants and turfgrass look their best.............But that is NOT ENOUGH to be successful in business. Get an Accountant ASAP!

    Keep the Green ($$$) in Green Industry.


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