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Discussion in 'Lawn Mowing' started by gglawns, Mar 23, 2005.

  1. gglawns

    gglawns LawnSite Member
    from Midwest
    Messages: 38

    My friend and I started our own mowing company and I just bought a new truck the other day that we are going to use to haul the equipment around. We split everything else down the middle, how should we split the cost of the truck down the middle. I will be using it as a work and personal truck, that is where the problem is. any suggestions would be greatly appreciated.
  2. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Messages: 5,407

    Did you get your agreement in writing w/ the assistence of a lawyer? That would be my first concern w/ a partnership. You don't want to have arguements or misconceptions down the road. For the truck it sounds like you are going to have to keep track of the mileage and just use the $.36 per mile rule. I am sure some other guys will have better ideas.
  3. gglawns

    gglawns LawnSite Member
    from Midwest
    Messages: 38

    Ya that is what I was afraid of. I really dont want to count miles, it will be such a hassle and im sure i will forget one day when im in a hurry. Counting miles is kind of a last resort, keep the ideas coming. thanks
  4. jc1

    jc1 LawnSite Silver Member
    Messages: 2,062

    I would track miles also that way if the partnership goes bad your truck doesnt become half of his truck. Get a lawyer and write up an aggrement on how you will operate whos in charge or has final say and how things will be split if you go your own ways.
  5. LB1234

    LB1234 LawnSite Gold Member
    Messages: 3,208

    Speak to the attorney with rules and such b/t you and your partner...and make sure you right up how YOU own the truck and agree the business pays you 'x' amount for the truck. Speak to an accountant about how to write off the truck...you do not necessarily have to do mileage but it seems as if that is what you are going to have to do. There is also something about percentage of business use versus business use. In other words...you keep all your receipts for truck expenses (oil changes, tune-ups, repairs, etc.). Then lets say you traveled a total of 100 miles this year and 60 were for business use. The business would then pay you 60% of the total equipment costs...again, check with your accountant on the rules and regs for this.
  6. MudslinginFX4

    MudslinginFX4 LawnSite Bronze Member
    Messages: 1,170

    Your business can lease your truck from you. I have 2 personal trucks that we also use for business everyday and one full-time work truck. The two personal trucks ECM Lawn leases from me.
  7. TeamFla

    TeamFla LawnSite Member
    Messages: 27

    My partner and I are in a similar situation. I am the partner that uses the truck at times, what I do is put gas in the truck, more than I really use for personal running to make up the difference.Hopefully you have a partner that is willing to be fair, payup yet equal.
  8. WisconsinMower

    WisconsinMower LawnSite Member
    Messages: 13

    You are going to want to track the mileage and gas that you use not only to be reimbursed through your company but also when it comes tax time these are all a write off. Your truck is also for personal use so you cannot write off the cost of the truck though. I recommend you get a log book so that you can write down the mileage and the date that you put the miles on. Just remember that the little bit of extra work that this takes is all cash in your pockets.
  9. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Messages: 5,407

    I am just thinking about the future. From what I have seen, partnerships can be disasterous if they are not set up correctly. If you are going to do this full time and full force, I would get everything in writing from a lawyer. This essential to your success. I would plan for your success down the road if you really want this to work. I would also get advise from an accountant to get you started on the right foot. The consultation will probably be about $250, but it will be well worth it. It would be hard to guestimate finding a percentage that you use the truck for work. It also seems like this could be a problem later down the road if you and your partner have a dispute on the percentage. This percentage should fluctuate and hopefully grow. Would it be possible to split the cost of the truck and just use it for business? and possibly just buy something cheap for you to ride around in?
  10. mattydjakd

    mattydjakd LawnSite Member
    Messages: 50

    get it in writing, get it in writing, get it in writing, get it in writing....friends now, who knows what later.

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