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office set up help-for MD

Discussion in 'Business Operations' started by rockcreeklawnser., Jan 7, 2003.

  1. rockcreeklawnser.

    rockcreeklawnser. LawnSite Member
    Messages: 18

    I hope someone from MD. can help me.
    Started the new business in march. andstayed pretty busy all year. I kept good records on quikbooks pro.My questions are more in the lines of... where do I file for tax I.D.? DoI have to register a business name or entity,and where.(business is sole proprieter. And consist`s of mainly mowing,mulching and light landscaping.Nothing that I would need a bus. license for,according to county court house.) My biggest problem is that I failed to get all of this squared away early in the year.Thus I never paid any kind of quarterly taxes. Which now have to be addressed,and paid.(even if there will be late penalties.)
    So if any one from md. can give me any help in any of these areas I would greatly appreciate it.
  2. dhicks

    dhicks Member
    Messages: 770

    I live in Frederick County and a business license is not necessary in our county. However, if you are collecting sales tax you will need a permit to collect and report sales tax. Reporting is done quarterly. For more information, go to http://business.marylandtaxes.com/taxinfo/salesanduse/default.asp

    Unless you made a ton of money, quarterly payment of income tax is not required. HOWEVER, before you come to this conclusion, get an industrial strength consultation with your tax person or accountant. I only pay once per year since I have multiple income sources. If your income is only from mowing etc, you may need to report quarterly.
  3. rockcreeklawnser.

    rockcreeklawnser. LawnSite Member
    Messages: 18

    Thank you for your reply.I will check into it.
    Thanks again!
  4. Potomac Lawns Inc.

    Potomac Lawns Inc. LawnSite Senior Member
    Messages: 412

    I live in charles county and my bussiness is set up as an s-corp, but here you do not need a license either, what part of md are you from?

  5. rockcreeklawnser.

    rockcreeklawnser. LawnSite Member
    Messages: 18

    potomac lawns,
    I live in Frederick county also. A question about sales tax,do I need to collect sales tax on a mowing job,isn`t that selling a service?Do I have to charge sales tax on materials for a job such as mulch?Or do I just transfer the 5% from where I paid for the material?
  6. Green Finger

    Green Finger LawnSite Senior Member
    Messages: 839

    In the state of Maryland you only pay taxes on the cost of goods or materials. ie mulch, seeds, plant materials, ect. Not labor services. Mowing grass falls under labor.

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