Discussion in 'Starting a Lawn Care Business' started by mowforyourmoney, Feb 27, 2006.

  1. mowforyourmoney

    mowforyourmoney LawnSite Member
    from kc
    Messages: 45

    ok does it really matter if your business is licesenced to get comercial accounts do they check to see if you're legit the reason i'm asking is cuz i'm a minor and i think my 'rents would have to get the license under their name and they are convinced that woud jack up their taxes ne advice would be greatly appriciated
  2. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Messages: 4,373

    I've been doing commercials for 16 years. My business only has a sales tax license. I have none with the local city, county, township, state.

    I do have an EIN with the IRS, and a state tax number, but that's it.

    CLARK LAWN LawnSite Silver Member
    Messages: 2,526

    your a minor so it doesn't really matter you cant sign a contract so dont bother with commercial and you need a tax id # to get insurance. and as for your parents taxes you wont be making a whole lot for the first couple years and after you deduct expenses and yes you will have expenses you may even be operating at a lower tax bracket.
  4. grassman1

    grassman1 LawnSite Member
    Messages: 11

    Can't you get insurance as a sole proprietor? I'm assuming that as a SP you don't need a tax ID#. Don't you just file taxes with your personal income with a schedule C form?
  5. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Messages: 4,373

    Don't listen to the people about signing the contract.

    I've never had a contract, other than the 2 Wal-Marts I do.

    If the place has a contract, you'll probably run it past your dad. Basically it'll be set up as your parents owning the business and you're an employee. That's the way I started.

    My first account was a commercial account, along with 50% of the accounts I had my first year.

    I've never believed in contracts and I've never been screwed by someone because I didn't have a contract.

    I will agree with Clark Lawn though that your parents will want to talk about it with an accountant, because they will be in a lower tax bracket, until your business starts making money, at which time, if you're still going to do the business and not go to college, you can purchase the business from them, or talk to the accountant again, since you'll probably depreciate equipment, and figure out the best way to hand the business over to you.

    At which time, they should be able to still sell it to you at a loss, so they're going to have very minimal tax increase, if not a decrease.
  6. Runner

    Runner LawnSite Fanatic
    Messages: 13,497

    Don't even worry about the commercial stuff, kid. There is too much other stuff to be had. As far as someone with a contract, and "running it by your dad", for you to work, it isn't going to happen. Anyone who would do this would have to be totally ignorant of labor laws (then why would they even diCUSS a contract), or they would just have to be plain stupid. Either way it is illegal, illegal, and oh's illegal. These labor laws are set in place for good reason. It saves a whole lot of injuries and lawsuits. NO company can hire a minor to run power equipment, for any commercial purposes. NO BODY...This includes the "family" clauses that get around the hourly rules for agricultural purposes. There have been some real good threads on here in the past for these things.
  7. daveintoledo

    daveintoledo LawnSite Silver Member
    Messages: 2,587

    this is a bunch of crap.... no walmart in the U.S. is haveing there property maintained without a contract....anyone with any knowledge knows this to be misinformation.....

    listen to runner, he is very experienced and understantds the laws, and like most good businessmen, doesnt break the laws either...

    in life, and business your either legal or a crook.... its up to you how you want to be viewed in the industry by your customers and peers, a crook , or a honest business person..... good luck
  8. daveintoledo

    daveintoledo LawnSite Silver Member
    Messages: 2,587

    just because a license isnt need in one area is wrong to think that its not needed in others, it varies form state to state, and within the state, from city to city and county to county..... many places you need a vendors license in every county you work in..... and some states require you to collect sales tax, some dont.... please check with your state and local authorities....and in most cases, you have to be an adult to get licensed...
  9. daveintoledo

    daveintoledo LawnSite Silver Member
    Messages: 2,587

    if your parents are claiming you as a deduction, and you can bet they are, then if you make too much and have to file.., they will loose there tax break... and probably loose more money then you have earned....

    im pretty sure this is right, if im not, please someone jump in and correct, me, taxes are not my best subject....
  10. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Messages: 4,373

    dave - you might want to re-read my post.

    I said "I don't have any contracts, except for the 2 Wal-Marts that I do", did I not??

    As far as labor laws, what you're telling me, is all of these mom and pop operations, whether it's LCO, gas stations, farms, machine shops, welding shops, whatever you can think of, every single one of them is running ONLY legal residents with OF AGE employees????

    There isn't going to be any one from the labor department busting down his' parents door insisting they see a birth certificate and making absolute sure that the kid is 18.

    Every kid that's under 18, you don't think the parents are running it as a tax break for themselves??? Give me a break....

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