As self-employee do we have to collect taxes, in Texas?

Discussion in 'Starting a Lawn Care Business' started by lawnmowingintown, Jan 15, 2019.

  1. lawnmowingintown

    lawnmowingintown LawnSite Member
    Messages: 72

    I have been thinking if I have to collect them? I work on my own and don't have a facility other than my home to place my equipment. I do pay taxes but collect taxes I never have. I only do mowing..... as for income I made about 34k last year. In the attachment area says about 5k income I am confused and kinda hoping I don't own more :/.
     

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  2. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 15,198

    I’m not sure what taxes you are referring to specifically

    There is federal income tax... which sounds like you’re paying that
    There’s state (and sometimes local) income tax
    And then I think you’re talking about sales/use tax
    Which depends on the laws of your local area (state, country, municipality) on if there is a sales tax for your kind of work.

    Your status (self employed) isn’t relevant to that kind of tax, just the type of work you do.

    Some areas only collect tax on goods sold (like cars)
    While others collect tax on all sales to include service (like lawn mowing)
    Still others limit it to types of service or exclude services under a certain amount.

    Best thing to do is contact your local chamber of commerce, they can lead you in the right direction.
     
    lawnmowingintown likes this.
  3. Matthews Lawn Care

    Matthews Lawn Care LawnSite Silver Member
    Messages: 2,209

    A call to the state secretary will clear things up.

    I just inquired about sales tax on Arkansas last week. Started with the city I was looking at servicing, then the county, then the state.
     
  4. TX Easymoney

    TX Easymoney LawnSite Platinum Member
    Messages: 4,285

  5. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 15,198

    man I never want to call anyone int he government and say "should i have been paying these taxes all along"?
     
    Mark Oomkes, tobylou8 and Ma&Pa like this.
  6. Centex Aeration

    Centex Aeration LawnSite Member
    Messages: 94

    Right, simply move towards compliance and do not contact the State. I live in Texas and can get you moving in the right direction. The State Comptroller will issue you a sales tax permit/license and you can submit it all online.
     
  7. Matthews Lawn Care

    Matthews Lawn Care LawnSite Silver Member
    Messages: 2,209

    Who said to ask if you should have been paying?

    Pretty easy to tell them you are starting a new biz in such and such industry and was inquiring what taxes if any you were required to collect/pay.

    Geez, no need to tell on yourself.
     
  8. Matthews Lawn Care

    Matthews Lawn Care LawnSite Silver Member
    Messages: 2,209

    So I’m guessing that the state of Texas is ignorant enough to not realize this person paid self employed income tax last year and now all of a sudden they need a sales/tax permit?
     
  9. TomH&H

    TomH&H LawnSite Member
    Male, from Coopersburg, PA
    Messages: 195

    Depending on what the tax requirements are, it might not matter if it's a company offering multiple services. In PA, mowing is taxed, labdscaping installs are not (unless you mow on the same day), hardscaping is taxed, snow removal is not (unless you are removing it from a roof or building), etc. For all they know you are just now offering taxable services. I wouldn't try to cheat them though, not worth it of you would get caught. Plus it's not you paying the sales tax, you are only collecting it from your customers for the state. I always make sure to point that fact out when somebody asks why I "charge" them sales tax.
     
  10. TX Easymoney

    TX Easymoney LawnSite Platinum Member
    Messages: 4,285

    over 5K is taxed
     

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