State of Ohio sales tax

Discussion in 'Business Operations' started by riches139, Feb 2, 2005.

  1. riches139

    riches139 LawnSite Senior Member
    Messages: 369

    Something I learned today.

    You do not need a service vendors license for the first 5000.00 of sales.
    After 5000.00 you must have the license and collect sales tax.

    If you have the license at startup, like I did, you must collect tax on all sales.

    If you anticipate sales close or above that figure, best to get it from the start.
  2. lqmustang

    lqmustang LawnSite Senior Member
    Messages: 620

    Don't you love it how they give the part timers a competitive advantage, yet those of us that do this for a living have to charge (or collect) accordingly, making our prices slightly higher.

    KERRTURF LawnSite Member
    Messages: 129

    The way I understand it is that you have to NET over 5K. So, that means that the guy doing it for beer money gets to earn more than 5k as long as he takes his equipment writeoffs up front in order to get his income less than 5k. We (residents of Ohio) really should make our voices heard to the politicians. With taxes as high as they are here, it is almost impossible to grow a business here. That and with loopholes like this, make it extremely difficult to keep going.
  4. riches139

    riches139 LawnSite Senior Member
    Messages: 369

    Yes Lq. :realmad:

    Attaching a pdf file for all to read, somethings we charge tax for in our line of business may fall under different provisions.

    Attached Files:

  5. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Messages: 1,847

    just charge tax on everything you do... the dept isnt going to complain about recieving too much money.

    if you want to appear competitive, dont build tax into your prices... have a clause that states "all prices will be charged 7% OH sales tax" or the like. This also benefits you in another way. I think it was 2 years ago, tax was raised from 6 to 7%... I had about half my clients with 6% built into their rates... the other half were specified that sales tax was extra. well moral of the story, i ate the 1% on half my clients for about half a season because of how i worded it.
  6. Clapper&Company

    Clapper&Company LawnSite Bronze Member
    from NE Ohio
    Messages: 1,291

    Hey, I'm just starting to get int to the lawn care, and landscapeing big this year. Any hints or infor to help me?
  7. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Messages: 1,847

    Track all your times for every service... track drive time seperately... track all your non productions times for equpiment maintenance and estimates. You must know your numbers. This year, im even going deeper and tracking times by turf type for maintenance. Numbers are what makes a successful business
  8. Drew Gemma

    Drew Gemma LawnSite Bronze Member
    Messages: 1,508

    yes it is a crime but with the vendors permit you can also purchase goods to be resold tax free so their is a plus that those who don't have one get. Just one point plus it is one step to being legit. Who cares about the others I just focus on my bussiness and what I do everyone is out to screw you.
  9. starry night

    starry night LawnSite Gold Member
    Messages: 3,312

    Check with a CPA on this sales tax business. I may not be right but I think I am: You may not have to collect it for the first $5000 but someone has to PAY it. In other words, your customers owe it to the state even if YOU don't have to collect it. A sale is made.... a tax is due.
  10. starry night

    starry night LawnSite Gold Member
    Messages: 3,312

    Yep. Just found this:
    The Ohio sales and use tax applies to the retail sale, lease, and rental of tangible personal property as well as the sale of selected services in Ohio. In transactions where sales tax was due but not collected by the vendor or seller, a use tax of equal amount is due from the customer.

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