What do you charge for running a skid steer?

Discussion in 'Heavy Equipment & Pavement' started by Cat_246B, Nov 25, 2011.

  1. Cat_246B

    Cat_246B LawnSite Member
    Posts: 50

    Sorry for the double post. I might be able to use a Cat 246 that I use at the greenhouses where I work. Would that machine be good for trenching and brush cutting, they only use for lift and carry jobs. It has standard flow hydrolics on it. Thanks.
     
  2. YellowDogSVC

    YellowDogSVC LawnSite Gold Member
    from TX
    Posts: 3,752

    liability insurance is for hitting things and protecting your customer's property. If you run over a septic or damage something YOU cannot afford to replace, that is what insurance is for. Some policies have PIP protection too for injuries to people or sub contractors while on site.

    AWJ was right about the business license. Sales tax is a separate issue. Dont' get caught performing taxable services without a sales tax permit.. you can end up with a frozen bank account or worse if the comptroller suspects you knowing avoided the permit. Some contractors around here are finding out the hard way that the comptroller has about as much power as the IRS to freeze accounts and assess penalties. Big deal for me...since I do a lot of tree work. Our industry is scrutinized, I guess because of the guys taking cash and not reporting.. It's a hassle and it sucks but some services are taxable and if you are doing enough then you need to be insured.
    Oh, more and more municipalities are requiring licenses. For example the biggest city near me is San Antonio, TX. A lot of smaller cities require a separate license.. HEADACHE to comply with each and every municipality but the fines suck or worse, you can get shut down. If you want to do trees in some cities you have to take a stupid class.. I could teach some of the class and still have to take it! :)
     
  3. Cat_246B

    Cat_246B LawnSite Member
    Posts: 50

    Thanks for the information yellowdog.:) Can you clear up what taxable services are? And do you guys think 130-150hrs running a skid steer is a fair amount of hours and enough practice and experience to start something like this?
     
  4. AWJ Services

    AWJ Services LawnSite Platinum Member
    from Ga
    Posts: 4,276

    Different states have different laws on sales tax. here in Ga we pay sales tax only on material profits not labor.
     
  5. ksss

    ksss LawnSite Fanatic
    Posts: 7,126

    In Idaho nothing we perform is subject to sales tax. However we have to pay sales tax or use tax on materials. Got audited some years ago, a topsoil supplier I was using was not charging me sales tax, so I got to go back and back pay all the sales/use tax due. Not fun.

    Moral of the story is know what the rules are in your area.
     
  6. muddywater

    muddywater LawnSite Bronze Member
    Posts: 1,813

    Wouldn't that be on the supplier to pay the state the sales tax he did not charge?
     
  7. Cat_246B

    Cat_246B LawnSite Member
    Posts: 50

    Thanks Ksss I'll be sure to do that. That sucks that you got audited, is there anything else I should now? Is the best way to get the word out by telling people your doing something like this, or advertise it?
     
  8. AWJ Services

    AWJ Services LawnSite Platinum Member
    from Ga
    Posts: 4,276

    Depends. Different states have different laws for sales tax but bottom line is someone will pay.LOL
     
  9. ksss

    ksss LawnSite Fanatic
    Posts: 7,126

    Yea they fined him as well, then audited all his books, it was like a bad case of the Clapp.
     
  10. ksss

    ksss LawnSite Fanatic
    Posts: 7,126

     

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