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bwood99x
07-23-2010, 04:22 AM
I have created an LLC and have a Federal Employer ID #. Do any of you know what else is required to do lawn maintenance/landscaping in Florida? Also, since I am providing a service and not a product, Im not required to charge sales tax, correct? What if I do a mulching job and "sell" the mulch to the client along with my labor? I have had a few people work for me and I pay them a check out of my company bank account. Also, Ive had them sign 1099's (none of them have made $600 yet, including myself...who hasnt been paid $1 yet). Is there anything I am not thinking off in addition to these Questions?

Steve
07-23-2010, 03:28 PM
I have created an LLC and have a Federal Employer ID #. Do any of you know what else is required to do lawn maintenance/landscaping in Florida?

It is possible your town has some kind of license you need as a contractor but more often than not, it only applies to landscapers. You should check this out in your town hall though.

Also, since I am providing a service and not a product, Im not required to charge sales tax, correct? What if I do a mulching job and "sell" the mulch to the client along with my labor?

The tax laws are crazy. You will have to look this up online for your state and see what you need to charge sales tax for.

I have had a few people work for me and I pay them a check out of my company bank account. Also, Ive had them sign 1099's (none of them have made $600 yet, including myself...who hasnt been paid $1 yet). Is there anything I am not thinking off in addition to these Questions?

You have to be very careful when using 1099's. We have seen lawn care business owners get into trouble when they pay employees this way. You have to make sure the 1099's are used only for independent contractors. If these are employees, you have to pay them with a w2 form and withhold the proper taxes.

NewLeafca
07-24-2010, 11:19 AM
Also, since I am providing a service and not a product, Im not required to charge sales tax, correct? What if I do a mulching job and "sell" the mulch to the client along with my labor?

Here in CA you do not charge sales tax on services. You do have to charge sales tax on everything else. So if you are doing a mulching job and "sell" the mulch to the client you have to charge sales tax on the mulch. Also if you do any spraying here in CA the labor is not taxable. But you have to keep track of how much product you use on the lawn and charge a sales tax for the product. As Steve said the tax laws can get very tricky. I hired an accountant right off the bat so that they can keep track of everything legally for me.

I have had a few people work for me and I pay them a check out of my company bank account. Also, Ive had them sign 1099's (none of them have made $600 yet, including myself...who hasnt been paid $1 yet).

Paying employees is also another tricky situation if you use a 1099. I would pay them as hourly employees and have them sign a W-4. You also have to make sure you withhold the right amount of taxes from your employees pay.

I know of a guy here in town that started a service and it grew very quickly within the first year. He was doing great and making some good money. However, when tax time came around he found out that he was not charging sales tax on the right items. He also was paying his part-time employees as independent contractors and that came back to bite him. Needless to say at the end of the year he owed several thousand dollars in taxes that he couldn't pay. He had to sell off his equipment to pay the taxes and I got some great deals. He is no longer in business so just be careful and dot your I's and cross your T's.

wglyons
07-29-2010, 10:56 AM
I live in Florida also, and just started my business back in May.

Other than what you've done, as Steve mentioned, a local "Business Tax" may need to be paid. Mine, for my home-based-business, is $40 per year. That gives me the legal right to conduct business in the county, but I purchased the tax receipt from the city in which I live...

I applied to the State for a Tax ID. The state actually called me back and told me that it is uncommon for a landscape company to collect taxes, and that they were denying the application!!! In fact, lawn care companies are specifically excluded from having to collect tax in Florida. The way the lady explained it to me was this: when you go buy mulch to take to a property, pay tax on it. Now, the tax for the item has been paid. So, instead of figuring $15 for the yard of mulch, figure $15+tax as your cost, and include it in your service quote. For example, I charge $50 to deliver and spread a yard of mulch. I do not itemize the invoice to show 1) one yard of mulch - $20, 2) spread mulch - $30, I just have it listed as "Mulch - Delivered and Spread - $50...

This makes the process much easier and less painful in terms of quarterly paperwork...

I'm at the point of needing help and debating hiring someone, so I can't speak to your third issue as of yet...

Good Luck,

Greg

LawnMoore
07-29-2010, 04:10 PM
I also just filed my Inc. with the state of florida, i picked up my EIN # from the IRS moments later, i also asked them about said tax id # for buying and selling products, and the told me, if i am going to be a reseller of any products, thats is something that is to be filed in the "County" bracket, instead of a regular business license i would apply for my resellers license.. that what i understood, and this all happened yesterday evening

StartALawnCareBusiness
08-08-2010, 12:42 AM
Don't forget your applicator's license!!!

If you apply ANY type of chemical pesticide or herbacide in Florida you will likely be required to have proof of a chemical applicators license. Florida has some of the strictest laws in the nation when it comes to chemical application.

Good luck:

Keith
Start A Lawn Care Business (http://www.StartALawnCareBusiness.com)