wholesale plants and taxes?

Discussion in 'Starting a Lawn Care Business' started by johnnybow, Jan 14, 2011.

  1. johnnybow

    johnnybow LawnSite Member
    Posts: 157

    Not real clear on how this works. Lets say i buy a shrub from a wholesale nursery and pay the tax on the plant then. Then i mark it up and plant it at the customers. Do i have to add the tax again to the plant and charge them? How does this work thanks
     
  2. loupiscopolandscaping

    loupiscopolandscaping LawnSite Senior Member
    Posts: 320

    depends on your company...i asked my accountant who is a CPA...she said since im an INC. type S company...when i do my invoice/bill my material should be seperated from labor...the labor gets taxed and the material doesn't...do i do it, HELL NO to much paperwork, i tax both and pay in both, the state must love me lol....your best bet is asking ur accountant
     
  3. ROC lawn and landscapes

    ROC lawn and landscapes LawnSite Member
    Posts: 82

    Fill out a tax exempt form, give it to the nursery. Then you can buy your plant material tax free. Then mark your plant material up and charge your customer the sales tax... NEVER give the gov't more money than they diserve:nono:!! they never give us any breaks:cry:! Hope this helped.
     
  4. loupiscopolandscaping

    loupiscopolandscaping LawnSite Senior Member
    Posts: 320

    i asked my accountant about the tax exempt form and she said that doesnt apply to my company since its a corporation...LLC might be different...but i did bring it up to her multiple times
     
  5. rwaters

    rwaters LawnSite Senior Member
    from Online
    Posts: 731

    I would find a better accountant, you have to fill out a form with your sales tax number and give it to your supplier then they can sell you stuff tax free.
     
  6. loupiscopolandscaping

    loupiscopolandscaping LawnSite Senior Member
    Posts: 320

    Thank you, i will be doing more homework this winter...she is a "CPA" so id think she would know about this simple stuff, but who knows lol
     
  7. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,450

    The way I am reading this is, don't pay sales tax, but collect sales tax from customer and don't report it to the government. I think that's called evasion.
    Posted via Mobile Device
     
  8. ROC lawn and landscapes

    ROC lawn and landscapes LawnSite Member
    Posts: 82

    What I was trying to say is that there is no need to pay sales tax twice on the same product:hammerhead:... I do pay the sales tax that I've recieved!
     
  9. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,450

    My apologies. You stopped just short of saying ...and pay that collected sales tax to the appropriate agency.
    Posted via Mobile Device
     
  10. ROC lawn and landscapes

    ROC lawn and landscapes LawnSite Member
    Posts: 82

    lol yah i read it again. sorry bout that. that is one thing you dont want to do is take money that belongs to uncle sam!
     

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