Pricing and Tax

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

  1. hotpan

    hotpan LawnSite Member
    Messages: 67

    I am new to business, but i have learned from others to only work in high end neighborhoods. In Louisville, the majority of these neighborhoods are houses bunched up close together, with very small yards. It would only take 15 minutes for 2 of us to mow, trim, edge, blow, etc.. Maybe even less than 15 minutes. Do i still charge the minimum $30 on yards so small? Also, do you guys charge tax to the monthly charge?

    Thanks for your advice!
  2. Roger

    Roger LawnSite Fanatic
    Messages: 5,941

    Any tax considerations depend upon your local laws. Nobody CHARGES taxes, rather as a service provider (contractor), you are merely collecting taxes on the part of a taxing agency.

    You must consult the taxing agencies that govern your area, from state to local municipalities. Even though your state may have a sales tax imposed, it may or may not, apply to lawn care work. In my state, only certain services within the lawn care business are in the categories for taxing. It varies so much, that if I lived about two miles away, and worked those neighborhoods, I would be collecting an extra one percent tax.

    Your accountant who is helping you set up your business should be able to give you all the details, or at least point you to the resources so that you can learn for yourself.
  3. green giant

    green giant LawnSite Member
    Messages: 2

    I'm across the river starting my own lawn care company and the questions you've asked havn't been stupid- they've helped me out a lot.
    Good luck- I'm not on here much ,but you can e-mail me if you need help- maybe we can ex-change some ideas.
  4. Precision Lawns

    Precision Lawns LawnSite Senior Member
    Messages: 283

    Your minimum price is a minimum for a reason. We charge our minimum even if the yard only takes us 6 minutes from gate down to gate up. We've had some customers question it, but most of them understand the concept of minimums and let it go. If you're willing to lower your minimum for smaller lots, then it's not really your minimum, is it?

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