Taxes What to do

Discussion in 'Business Operations' started by RD592, Sep 28, 2006.

  1. RD592

    RD592 LawnSite Member
    Messages: 70

    This is my first year in the lawn buisness. I do have an LLC company with no insurace. Note I am only part time. I have 8 accounts that I make a good profit on but all of my clients are residential and they pay me cash. I also cut two peoples lawns ( my moms and my neighbos) and dont charge them at all.

    I do plan on going to my CPA, but here is my problems. I dont have any invoices because they pay me cash, how much should I show, and can I claim my mom and my neighbors cuts as donations.

    I also would like to know how much of a lost I could have in my first year of buisness.

    Before I started my buisness I was really orginized and said I was going to invoice everything, but once I got started my clients would just come out with the cash and give it to me and they all said that they didnt need an invoice.

    I did spent about 10,000 dollars to get off and started and this year I made my money back.
  2. newz7151

    newz7151 LawnSite Silver Member
    from Tejas
    Messages: 2,419

    The first thing to do would be to not post incriminating evidence like this on a public forum.

    Next, try and go back and make invoices on all the cuts you did. When people tell me "oh, I don't need a receipt" , I tell them "You don't.. but I DO" .
  3. ATVracer

    ATVracer LawnSite Senior Member
    from Indiana
    Messages: 346

    So you spent 10 grand on equipment, took the time to make it an LLC, but didn't bother to spend a few hundred dollars to get insurance? Wow.
  4. RD592

    RD592 LawnSite Member
    Messages: 70

    Yes I did and I saved about 1300 bucks this year because of this. I may get some next year
  5. grass_cuttin_fool

    grass_cuttin_fool LawnSite Gold Member
    Messages: 3,526

    I dont give all my customers receipts, but I file each days work on an excel sheet and have a total of what I charged at the end of the year, Actually I have a sheet for each customer so that I have a record of the work for each account. Shop around for some Insurance, I dont know how much coverage that was 1300 bux but maybe look into a smaller policy, anything to help cover your butt. And remember ..........Ins is a cost of doing buisness and a deduction too, something else to help differ taxes

  6. SodKing

    SodKing LawnSite Bronze Member
    Messages: 1,641

    So, you don't keep records, don't have insurance, didn't pay ferderal or state or medicare taxes, can we then assume you didn't pay workers comp, Have no idea what went on this year but you spent some money starting up....

    This has failure written all over it.
  7. RD592

    RD592 LawnSite Member
    Messages: 70

    Failure? I can quit tomorrow and have a lot to show for it. I work solo and really dont have any overhead because my properties a all in one subdivision.

    Imdont know anything about running a business, but Im making really good money doing it even though I would give 25 percent of my total profits to the government.

    You may be doing things right but the people I talked that are doing very good in this buisness are hidding all their cash. Just like half the people on this site.

    Just my opinion.
  8. RD592

    RD592 LawnSite Member
    Messages: 70

  9. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Messages: 7,547

    since he is solo I think everyone would assume he didnt pay workers comp.
  10. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Messages: 2,988

    Better get yourself some insurance. One accident, and all that money you made back will be gone, and then some.

    Why would you form an LLC, a legitimate business, and then not keep decent records or use invoices?

    My agreements specifically state no payment will be taken at the time of service. All invoices are mailed to my customers, except for one who is a friend of mine. I give it to him personally each month.

    If they don't want an invoice, give it to them anyways. THEY can trash it, but you will have a copy.

    And FWIW, part of being legit is NOT hiding the money. A good CPA will get you a lot come tax time. No need to hide the money. That is for illigit dirtbags.

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