• Thankful For Your Family…. Business?
    Landscaping businesses are often family endeavors. While this can combine the best of both worlds (personal and professional), it isn’t always smooth sailing. Click here to read more.

Few Questions!

jeffy32

LawnSite Member
Location
Plainfield IN
Hello everyone...New here be gentle...lol
1st I have been reading\serching for weeks...GREAT site!!!!!!!!!
I have a few questions...
I am wanting to start doing some lawns as a part time gig to make a little extra money for family(maybe 10 accounts). I want to be legal(lossing everything is not gonna help me!) I will prob be doing the lawns that most companys woudnt drop their gate for. I am not worried about the equipment as that seems prettty cut and dry(no pun)..36WB..21" push...blower...trimmer. NOW what im having trouble with is if once i get llc\insured am I going to get killed at tax time? I dont want to make 10K pay 1500 in insurance and startup-and have to pay 5k at tax time. Sorry to ramble...again great site. Remember I am not wanting to quite my job or take over the industry just make some and teach my son some work ethics.

P.S... If I hadnt found this site i would have NEVER even thought about insurance!!!!!!! THANK YOU!!!!!

Jeff
 

SangerLawn

LawnSite Senior Member
Location
indiana
Awesome post…love how you put it about insurance and loosing everything…good job!!

You probably will find this hard to believe but…you are looking at one of the best businesses in the world for tax right offs. Probably the first 3 years your in business you wont have to worry about taxes. The reason for this is mileage. You will receive ether 68 or 86 cents per mile (cant remember witch one) tax right off for every mile you put on your vehicle for the entire year.

With that being said, in order to get the tax right off for the entire year you will have to have a permanent decal on your vehicle showing it is a business. If you use magnets, you are only aloud to use the mileage while working. With permanent decals, you can claim every single mile you drive even if you are not working because it is a permanent work vehicle.

If that doesn’t make sence shoot me a private message and I will try and explain it better.
 

MikeKle

LawnSite Platinum Member
Location
Northern KY
Here in KY we are able to claim either mileage or gallons of fuel purchased, But it will probably be about the same. And as far as income taxes, they will kill you! I believe it is around 30% of your total gross, but we do not pay into social security or unemployment either. I have it set up where I do not pay any taxes all year, and then in April,I file, and get put on a payment plan each month. Make sure you save all your receipts or repairs or parts, you can deduct all of those. I figured out that I end up working for basically free for about the first month, then it is all profit! I would bet though the guys that do it like you are planning, only having around 10 accounts, do not even claim their business, so they pay nothing in taxes!!! These are referred to as scrubs!
 

KeystoneLawn&Landscaping

LawnSite Senior Member
Location
Erie, PA
All due respects to all the "tax experts" that will give you answers, but if you are serious about doing your part time business right then you should hire a CPA. They are costly, but well worth every penny! Your CPA will tell you everything you need to know. The greatest thing about the CPA is he is educated about tax laws and must attend seminars annually to maintain his CPA license. As for the two responses you already received, there is misinformation in both.
 

Alluring Lawns

LawnSite Member
Location
Boise,Id
First off the standard milege rate is .55 per mile in 09'. Rather you have a decal or not you can only write off business miles, and your net profit is taxed at whatever your effective tax bracket for other income is and about 15% on top of that for self-employment income to make-up for not paying into social security and medicare. Just keep track of income and any expenses for making that income, pretty simple. Any tax preparer shouldn't have any problems with it.
 
OP
J

jeffy32

LawnSite Member
Location
Plainfield IN
Thanks for the info guys! I have 3\4 acre myself so if this venture doesnt work out then I have a new mower :usflag: So the only real loss for me would be time and money paid toward insurance and getting company name.
I have a s10 pickup...would I have to sell\give that to my company in order to claim milage & put lettering on it? I read lots of conflicting info on this.
I would prob be doing 1\3 acre small yards....was planning:
Have a 5x8 trailer
cheapo 21" push(work for starting off till I wear it out)
cheapo trimmer(work for starting off till I wear it out)
will buy a used WB or found a local dealer 2500 for new gravely 36" WB belt
will need blower
As I said not shooting for the moon and think that set-up would be fine for 1st year trial run with the yards i will be looking at.
Im excited...win or loose.
Plus wife loves mowing our yard so much I only get to ride the mower once a month lol
Thanks Again!
 

SangerLawn

LawnSite Senior Member
Location
indiana
I don’t know if the mileage is governed federally or by the state but I do know I got 68 cents per mile on my taxes (I am also in Indiana). I also agree on going to a cpa for your taxes, I don’t claim to be a cpa nor do I claim I know everything about taxes, I simply answered what I know about mileage.

I don’t know if your vehicle has to be in your business name to get all the tax benefits? My trucks are the property of my company thou. And yes, as long as they are permanent decals on your truck, then your truck is a permanent work vehicle…as a result, all of your mileage is company miles.
 
OP
J

jeffy32

LawnSite Member
Location
Plainfield IN
Reading the Indiana LLC information.....giving me a headache lol. Once you get this from the state do you still need to do anything in the county you will be working in? Also when you start your LLC do you get your fed setup same time or is that a whole new process?
Thanks - Hendricks county (westside Indpls)
 

bohiaa

LawnSite Fanatic
with that small of an operation I would'nt worrie about a CPA.
if you do hire someone to take care of the money it's VERY cheap.
a small operation like that would warrnet around 5 to 600 a year for a decent CPA.

the milage thing, NO just because you attach a permanent decal does NOT mean that you write off every mile. you cant show for the year that you made 10,000 and spent 30,000 in fuel, " It wont work "
only the milage you use for the Business is a Business writeoff, this being said when I use the business truck for personal use, I only write down the milage for that use and subtract it.

I would NOT recomand cheating in any way.
it would be hard to only have around 10 accounts and make it work for you.
Better to take a secoand job at a local store.


Best of luck
 
OP
J

jeffy32

LawnSite Member
Location
Plainfield IN
Hmm....Well thats not really incouraging but....I would need to make about 13-14 dollars a hour bring home to match what im doing now fulltime and that would be few years prob before I could swing that with ins\tax\maint....I'd like to give it a shot if for no other reason then the life experience.I work on computers all day now and I really started missing the outdoors lately!!!
 
Top