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Help! couple of questions please.

Discussion in 'Starting a Lawn Care Business' started by schmidt78, Nov 8, 2011.

  1. schmidt78

    schmidt78 LawnSite Member
    Messages: 41

    Ok I don't know if I'm just excited or what but i wanted to get started getting ready for spring. So i looked into going and getting my business on paper.... so went to the county clerks office and went with sole proprietor ship. i also know i have to get a tax id #. i don't have the equipment but i have the money and accounts so i don't want to screw this up.
    My Questions
    ~Was Sole proprietor ship was a good idea or no?
    ~I wasn't't gonna go to get a tax ID # till the first of the year due to me planing on me purchasing equipment till 2012. I didn't know if i did got my ID # this year would i have to do taxes on my business either tho it i haven't started yet. or Do i have to get it this year.
    ~How do you know for a fact that no one has your business name? -like i went to the clerks office and have documents saying i have ownership of my business name. but is there Anything else.

    please help me. I'm worried I'm doing something wrong.
    Your Help Is Greatly Appreciated
  2. JayD

    JayD LawnSite Silver Member
    Messages: 2,062

    Off the topic, but just wanted to post that I am folding up and going back to electrical job. I will be letting go of some almost new toys, trailer 6x14 with many goodies on it. Just bought much of this last year and this year . PM me if you need anything.
  3. phillie

    phillie LawnSite Senior Member
    Messages: 861

    Sole Proprietor is good for now and will be unless you grow a lot. Go ahead and get your tax ID number. Even if you have to do taxes, if you cant pay taxes on money you havent made. I am pretty sure that to have ownership of the business, the clerk would have done a search before they gave you the paperwork. Dont forget insurance, if your working for people on their property you will need general liability insurance. You might want to check your state insurance requirements, possibly 1 million in coverage.
  4. schmidt78

    schmidt78 LawnSite Member
    Messages: 41

    Thanks you both. JayD Ill keep the equipment in mind but dont look to buy anything until Feb. or March and i have a shopping list of what i want.
    Phillie thanks for the answers. so i should go ahead and get a tax id #. i understand about the insurance. im just worried of things going wrong before it even starts.
    Thanks you
    greatly appreciated.
  5. ralph02813

    ralph02813 LawnSite Bronze Member
    Male, from Charlestown, RI
    Messages: 1,041

    Every state is different - sole properitership is fine for now as was said by phillie - if your operation grows, then incorporation might be in order as it allows you to be an employee of the corporation, and keeps the payment of other employees cleaner if and when you get there and decide to get a new corporate tax id from the feds.
    I am not sure what tax number you are referring to as the one you already your ss should work as a sole P. If you are thinking of the resale tax number, I have found that unless you are doing a lot of resale stuff, it not worth the paper work.
  6. cpllawncare

    cpllawncare LawnSite Silver Member
    Messages: 2,659

    I would recommend sitting down with an accountant and discuss your situation with him, he can give the best advice for these matters. Not trying to dis anyone on here just trying to get you in the best position, your going to need an accountant anyway for advice in the future, might as well get him now while your getting started so he has the full picture of the business from the beginning.
  7. schmidt78

    schmidt78 LawnSite Member
    Messages: 41

    Thanks for the advice from the both of you. The number I'm talking about is the one that the government can identify your business from everyone else. its like a SS number for businesses. I was thinking i should. Could you give me a ballpark on how much one is. If you don't know that's ok. Ill find out this week.
    Once again thank you for your help.
  8. JDiepstra

    JDiepstra LawnSite Bronze Member
    Messages: 1,510

    I am not an expert on this but I am pretty sure as a sole proprietor with no employees there is no need to get a tax id number. You should be able to use your ss#

    Edit: I just went back and the that "ralph" posted basically the same thing as I did. Again, I am pretty sure you will not need a tax ID number as a sole proprietor, but not 100% sure
  9. schmidt78

    schmidt78 LawnSite Member
    Messages: 41

    Thanks ralph02813 and JDiespstra. that works out. :)
  10. JCLawn and more

    JCLawn and more LawnSite Fanatic
    from MI
    Messages: 5,281

    You get a tax id number when you get your Inc or LLC. When your just a dba you use your SS as your tax I'd number on your schedual c when you do taxes. Make sense?
    Posted via Mobile Device

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