This year I am thinking about starting my own lawn care business. Right now I am 17 years old and so far the only two questions I have are insurance and taxes. Do you think that insurance is needed and if so how much will that cost and what type should I get. Also do I then have to file taxes at the end of the year.
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Well I'll be the first to say it, use the search and look for 'insurance' and 'taxes'. Lots of threads on those.
Now to answer your questions.
Insurance is a must. You might never use it but when you need it its better to have it then not. $1 million for general liability is pretty good if you're doing residentials, more for commercial. The way I look at it is like this; You need enough insurance incase you break everything on site and a little extra. I like being safe.
Taxes depend on what your state or county collects and how much you make. Look up your states dept of revenue on google. There should be a page that can help you out.
Hope that helps a bit.
I found a link to get you started.
http://www.state.sd.us/drr2/businesstax/bustax.htm
Now to answer your questions.
Insurance is a must. You might never use it but when you need it its better to have it then not. $1 million for general liability is pretty good if you're doing residentials, more for commercial. The way I look at it is like this; You need enough insurance incase you break everything on site and a little extra. I like being safe.
Taxes depend on what your state or county collects and how much you make. Look up your states dept of revenue on google. There should be a page that can help you out.
Hope that helps a bit.
I found a link to get you started.
http://www.state.sd.us/drr2/businesstax/bustax.htm
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if its people you know well, don't worry about it right now. If they don't claim you, then the government can't find you. Insurance is pretty cheap.
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ya, I'm 18. I am thinking about insurance this year. I need it for commercial businesses. My first year last year with my own mower was a success and now I am upgrading from a 42inch 17hp residential toro(got it for $30 in gas money) to a 60inch 21hp diesel woods with a 12 bushel hopper. I am excited for this year. You have to pay taxes on businesses though. You will get caught if you don't.
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im not too sure, the people I've talked to have told me that i don't have to since its a cash business?
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Insurance is a must! But if it was me in your spot i'd place it on the backburner. I ran w/o insurance for 7 yrs before I got it. Get your "company" base started and settled in and you should be good to go.
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if they pay you cash, then no. If they pay with a business check, then yes. You are technically suppose to with every one, but Obama can find me out. A couple my clients gave me a 10-99.
Amen. That's why anyone with a truck and a mower is now a "landscaper", living the dream in America.:usflag::dizzy:
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I'm not saying that it's right but depending on what he starts out doing he might be able to get away without insurance or paying taxes if hes only got a handful of clients and they are neighbors or family.
I went without insurance my first year because I was just doing my family but whenever I got a call to do a one-time mow (not my favorite kind of thing) or small landscape job I'd freak out because I thought I might wreck something and have to pay for it.
Anyways, if you're taking the biz seriously, you have to do it right and follow the rules and best biz practices. Get insurance and pay taxes.
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He's 17! He can't sign on a loan, much less any form of business papers. Give him a break. This is a high school kid that wants to start a business, not a 40 year old going and getting a loan, making it official, etc. Do you tell the 10 year old down the street that he needs to claim his snow shoveling money? It makes no sense.
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Ok then tell me at what age should he report his income then?
I know when i had a job at the age of 15 i sure as heck paid taxes.
Why shouldnt he?
Secondly my post wasnt aimed at the op but more so at the people saying dont worry about insurance or taxes.
Also what difference does it make if your 17 or 40 and starting a business.
I would think the same rules apply especially seems how he will be 18 in less than a year.
What happens when a rock shoots outa the mower and seriously hurts someone?
Im pretty sure his parents wont be to happy with that lawsuit.
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I know when i had a job at the age of 15 i sure as heck paid taxes.
Why shouldnt he?
Secondly my post wasnt aimed at the op but more so at the people saying dont worry about insurance or taxes.
Also what difference does it make if your 17 or 40 and starting a business.
I would think the same rules apply especially seems how he will be 18 in less than a year.
What happens when a rock shoots outa the mower and seriously hurts someone?
Im pretty sure his parents wont be to happy with that lawsuit.
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taxes are illegal. plain and simple.
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My point is that he is starting a high school business. If he is (or his parents are) worried about a lawsuit, they will undoubtedly help him out. But trust me, coming from a 17-year-old, it's a lot harder than "go out and get insurance/file business materials." I did a cost-benefit on it... after advertising, vehicle insurance (that is, if they'd even let me have it... typically you have to be ~25 before you can drive on commercial insurance), liability insurance, and business filing, i'd surrender at least 66% of what I'm making.
The problem is that I can't do enough volume to justify it.
tl;dr he's a minor. OP, do what you can. If your parents don't believe that you'll do much the first year (believe me, mine didn't), they'll :nono: when you ask for commercial insurance, financing, or any of the other fun things that go along with running in this business.
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Welcome to life [email protected] Its not easy running a legit business but if your in it for the long haul you need to. Not doing taxes and not having insurance can screw your chances up tremendously. As a 17 year old mowing a lawn you have the same risks as anyone else out there, people arent dealing with taxes and insuraunce fot sh*ts and giggles.
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The boy needs to learn about taxes early so he can be all growed up and do the right thing when he votes--thats the real world we live in--telling him he don't need to pay taxes now will make him beat himself up later when he invests a bunch of money on lawn mowers and drops out of school to mow grass..then he finds out he has to pay 1/3-1/2 of his income...pretty messed up--
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do you know the reason why the lagher-curve(means when taxes go up, revenue from taxes go down) is so when then taxes are raised? People stop paying taxes. Taxes are a joke. For one, no one knows the tax code. You can go to three different accountants and get three different amounts you have to pay. The whole thing is stupid. I think we should either go to a low flat tax, or just a sales tax. I went to a place to buy parts one time and the guy said, "You want to pay sales tax or not?" He has been in business forever. I thought that was pretty funny.
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I'm not saying that you pay taxes for fun. I'm simply saying that they make it so hard that some people, including me, would rather take the risk. When did you start your business
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If your going to be in this business, you need to run it right from the start. If you cannont afford to do that, then you need to find a different line of work IMHO.
Too many people out there trying to fly under the radar. Sure they may get lucky and never have an issue, but I am proud to say my business is legit, and feel I have a real business. Be a step above just a high school kid cutting the neighbors lawn for gas money.
Too many people out there trying to fly under the radar. Sure they may get lucky and never have an issue, but I am proud to say my business is legit, and feel I have a real business. Be a step above just a high school kid cutting the neighbors lawn for gas money.
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