To tax or not to tax

Discussion in 'Business Operations' started by kandalawncaremgr, Jan 10, 2013.

  1. KeystoneLawn&Landscaping

    KeystoneLawn&Landscaping LawnSite Senior Member
    Messages: 774

    Pa doesn't make things easy! Some things are and others not. For example taxable; lawn mowing, fertilization, overseed.....edging, ....Non-taxable; establishing new lawns, prunning or trimming shrubs and trees, pest aps to shrubs- trees- gardens, separately stated charges for raking leaves. Snow plowing or removal is not chargeable, unless removing snow from a roof or gutters. If I'm in doubt of a taxable service, I charge sales tax...............Another crazy tax law in PA. If a taxable item is delivered, the delivery is taxable. If the item is non taxable, the delivery is not taxable! IMO, delivery should stand on its own, either it is taxable or not!
  2. Darryl G

    Darryl G Inactive
    Messages: 9,500

    On a related note: I recommend anyone with a start-up business consult with both an attorney and an accountant. You want to make sure that you are indeed operating legally, that the language in any of your contracts/agreements does not violate state or federal law and that you have your accounting set up properly. If you choose to do your own bookkeeping, I recommend you have your accountant do your taxes for at least the first year or two. Any such professional fees are tax deductible.
  3. kandalawncaremgr

    kandalawncaremgr LawnSite Member
    Messages: 224

    Thanks for all the responses. I contacted a cpa and Im going to bring him a list of everything we do and he will tell me what's taxable and not, so I will be abiding by all the taxe rules and laws.
  4. KeystoneLawn&Landscaping

    KeystoneLawn&Landscaping LawnSite Senior Member
    Messages: 774

    Excellent! I would also recommend doing some sales tax research on your own. Actually, I'd recommend researching as much as you can find on your own about all legal obligations. Never trust just one source of info.
  5. kandalawncaremgr

    kandalawncaremgr LawnSite Member
    Messages: 224

    I'm going to take your advice. So for the next two months of down time I'm hitting the books. Lol.
  6. Roger

    Roger LawnSite Fanatic
    Messages: 5,943

    The choice to "charge sales tax," is not yours to make. The state has their rules, and each county may have their own rider on the state sales tax. The collection is done by a state agency. Undoubtedly, you need to apply for a license to do the collections. As stated above, you never "charge" sales tax, you only are collecting it on behalf of the state (uncompensated, I might add). It is your responsibility to make the collection and then remit to the state as required (e.g. monthly, quarterly, or ???). You will get all the information on where to remit, and the procedure to remit, when you get the license. In PA, all this is done electronically -- not even a choice of doing it by paper.

    Getting your sales tax collections in order is on the same level as insurance, licenses, and other things you mentioned. It is all part of operating a successful business.

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