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taxing people

Discussion in 'Starting a Lawn Care Business' started by bigmudder77, Apr 4, 2007.

  1. bigmudder77

    bigmudder77 LawnSite Senior Member
    Posts: 297

    how would you go about taxing people do you add in in your bid or do you tax them after you give them a bid

    Ex. $40 to mow. would you add tax on top of that making it $42.50 or would you subtract the tax from that making it 37.65

    im in ohio and the tax rate is .0625/every $1

    i need some help on this one. thanks
  2. NELawnCare

    NELawnCare LawnSite Member
    Posts: 175

    Most states require a sellers permit. I know Wisconsin does. I use Quickbooks. I have a line item for each task in a job on the invoice or estimate. Then I subtotal the tasks and add a line item for tax adding 5.5%. Then a grand total.

    Tax is never part of the price.

    I physically have a separate bank account to store the tax dollars, then pay the state and county tax once a year.

    Hope this helps.
  3. bigmudder77

    bigmudder77 LawnSite Senior Member
    Posts: 297

    ya ohio does too but i wanted to know like how you charge them tax if you add it on to what you gave them a quote for or if you quote them and have it including tax?

    tax sucks why do we need to pay it
  4. Uranus

    Uranus LawnSite Bronze Member
    from Mass
    Posts: 1,624

    I give them the price and then add in the words plus tax.

    Its different here where I work. We dont have to tax our services, just the materials that we sell.
  5. bigmudder77

    bigmudder77 LawnSite Senior Member
    Posts: 297

    ohio sucks
  6. Ecoscape01

    Ecoscape01 LawnSite Senior Member
    Posts: 375

    I was wondering how other guys seperate their taxes revenues from their gross revenues. I like that idea of having another account just for that but I didn't know it was an option. When the tax revenues from my business begin to warrant that, I will open a new account. How did you do that by the way? Right now my business checking is a DBA account using my SS# becuase I do not have an EIN. I guess the bank will know what to do but any suggestions before hand. As for the tax question, I also add it as a line item on my estimates right after the subtotal and before the grand total.
  7. nick-bigfootlawn

    nick-bigfootlawn LawnSite Member
    Posts: 106

    6.25% tax rate is just for your county, im in Columbus, and it's 6.75% so it does change if you do work in other counties. As for whether your price it in, the bid I give does not include tax, they will see it on their invoice when I send it out though. It is like this for every other business, phone companies, cable companies, car dealers, grocery stores, anything, no one is expected to include tax in their price, why should we?
  8. goodgreen

    goodgreen LawnSite Senior Member
    Posts: 364

    Yeah, our female governor tried to add tax to services being a good Democrat that she is. The legislature told her to bite the big one thank God.... Now they are trying to recall her.
  9. 4curbappeal

    4curbappeal LawnSite Senior Member
    Posts: 761

    Eat the tax! Back it out and don't chage your customer wierd amounts like $42.40 . Just my opinion!!!
  10. abuckeye

    abuckeye LawnSite Member
    Posts: 93

    I have a disclaimer on the bottom of all estimates that states; "All prices are plus tax unless you have a valid tax exempt certificate on flie". If it is a verbal estimate I make sure I tell them plus tax.
    The down side is the idiots out there that don't charge tax, most of whom are doing it on the side and not paying taxes anyway. I have lost a few customers that think they souldn't pay tax.

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