2nd year expansion questions?

jeckel7234

LawnSite Member
Location
Newport News, VA
This is my second year doing landscaping, about a week ago i bought a 6x12 enclosed trailer, 36" exmark metro,tiller and pressure washer. Im wanting to expand out with property management companies and resedential yards that are contracted. Should I get a lawyer for these contracts, or are the free ones online good enough. I also just got a business license here in Newport News, VA. i asked about taxes when I got it and the lady told me that the $30 fee for the license covers your taxes until you make over 100k a year. does that sound correct to anybody, thanks againg for any info
 

GrassIsGreenerLawnCare

LawnSite Senior Member
Location
VA
No, I dont think that is right. How are your going to claim income, and not pay taxes? I make under 100k a year in my 3rd legal year, and pay quarterly taxes. A town/county biz license is only a baby step for a legit biz. You need to figure out how you want to run your biz: Sole Prop, partnership, LLC, corp, etc. We are a LLC (limited Liability Company). You then get a EIN and TIN so you can file your taxes every 3 months. The state will send you the forms after you get everything in order. I also reccomend getting minimal insurance (usually from the same company as your car insurance).
We did not have an attorney, but did have a representative/advisor who helped with setting up the LLC. Once we get larger, I will look into an attorney.
 

zak406

LawnSite Bronze Member
Location
irwin pa
This is my second year doing landscaping, about a week ago i bought a 6x12 enclosed trailer, 36" exmark metro,tiller and pressure washer. Im wanting to expand out with property management companies and resedential yards that are contracted. Should I get a lawyer for these contracts, or are the free ones online good enough. I also just got a business license here in Newport News, VA. i asked about taxes when I got it and the lady told me that the $30 fee for the license covers your taxes until you make over 100k a year. does that sound correct to anybody, thanks againg for any info
Not a chance, I hold back 36% of what I make for sales tax, state tax, and federal tax.
 

bohiaa

LawnSite Fanatic
Not a chance, I hold back 36% of what I make for sales tax, state tax, and federal tax.
This sounds about right,,,,, I am AMAZED that people dont know that their taex at 52 to 54%.

WERE IN TEXAS, it's about the same, They just get it a little diffrently
 
OP
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jeckel7234

LawnSite Member
Location
Newport News, VA
it doesnt make since to me that tax is 34-54%, am i just really that new to this. SO basically you have to charge 150% of what you would charge??? when you can go in a store and by something and only pay 5.5% atleast in va
 

bohiaa

LawnSite Fanatic
it doesnt make since to me that tax is 34-54%, am i just really that new to this. SO basically you have to charge 150% of what you would charge??? when you can go in a store and by something and only pay 5.5% atleast in va
Consult your local senitor...

this is what people think...... you see, your talking sales tax, NOW watch this.

you have to pay tax when you purchase a tool for your business. then you have to claim it at redemption, for as long as you own it, BUT guess what ?
you have paid tax on the monies that you used to purchase this tool, NOW. the auto you used to go get this tool, you paid tax on it, also you pay a road tax every year on this auto. the proptery you own, you have to pay tax on it. EVERY YEAR. and you MUST carrie insurance, and you pay tax on that insurance, if you use a phone, you have to pay tax on it.

When it's all said and done, MOST PEOPLE PAY right at 52% TAX.......
 

Duekster

LawnSite Fanatic
Location
DFW, TX
Consult your local senitor...

this is what people think...... you see, your talking sales tax, NOW watch this.

you have to pay tax when you purchase a tool for your business. then you have to claim it at redemption, for as long as you own it, BUT guess what ?
you have paid tax on the monies that you used to purchase this tool, NOW. the auto you used to go get this tool, you paid tax on it, also you pay a road tax every year on this auto. the proptery you own, you have to pay tax on it. EVERY YEAR. and you MUST carrie insurance, and you pay tax on that insurance, if you use a phone, you have to pay tax on it.

When it's all said and done, MOST PEOPLE PAY right at 52% TAX.......
I am all for a more fair simple tax if for no other reason than to make it less of an incentive to lobby the crooks in office
 

cpllawncare

LawnSite Silver Member
Location
Greenville, SC
Not to change the subject, but just read an article about how the lottery winners usually end up paying 90% of their winnings back in taxes in some form or fashion, only way to not lose it is to move out of the country and give up your citizenship, which a lot of the extremely weathly do, you just don't hear about it.
 

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