When to charge sales tax.

Discussion in 'Starting a Lawn Care Business' started by wormburner, May 15, 2005.

  1. wormburner

    wormburner LawnSite Member
    Posts: 35

    I am just starting and I've got all the paperwork except for my service vendors license and just wanted to know if I should be charging sales tax for the jobs I have now or wait till I get the vendors license.
     
  2. Expert Lawns

    Expert Lawns LawnSite Silver Member
    Posts: 2,660

    You do know that you don't charge tax for "services" right? Only on any products you may purchase for the services; mulch, pavers etc.

    Not sure if this is what you're asking
     
  3. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    <marquee loop="infinite" bgcolor="#DDDDDF"><font color="#000000">Have a tax question? Ask our CPA. Click Here </font></marquee>
    Hi wormburner,

    Feel free to ask our CPA your question and they will email you back a response. Click on the link in the scrolling text above.
     
  4. LawnScapers of Dayton

    LawnScapers of Dayton LawnSite Silver Member
    Male, from Dayton, OH
    Posts: 2,572

    In Ohio you have to "collect" sales tax on all services, materials, etc related to landscaping/lawn care......

    Getting your venders license is a quick trip to the state office.....go get it and start off right...
    Derek
     
  5. wormburner

    wormburner LawnSite Member
    Posts: 35

    I know I have to charge sales tax for lawn service.I want to know if I should charge sales tax now or wait until my service vendors license comes in?
     
  6. Expert Lawns

    Expert Lawns LawnSite Silver Member
    Posts: 2,660

    That's crazy, I didn't know it was different state to state. What is your tax rate in Ohio?
     
  7. LawnScapers of Dayton

    LawnScapers of Dayton LawnSite Silver Member
    Male, from Dayton, OH
    Posts: 2,572

    rates vary county to county......
     
  8. LawnScapers of Dayton

    LawnScapers of Dayton LawnSite Silver Member
    Male, from Dayton, OH
    Posts: 2,572

    I guess you can wait until you get your license........
     
  9. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    if you antisipate making more then 5000 then you must file for and collect sales tax for the season, if you makde more then 5000 last year, you must charge sales tax,

    i will be above the cap so have to start charging right away, and file your return paperwork on time
     

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