Legality/Taxing Issues in Ohio

[asianchao123]

I'm 16 yrs old and am going to seriously start my business next season. right now i just cut two lawns and do limited side jobs. from april to early june, i'll be in school and only be working a few hours after school and on weekends.during the summer i will work as much as i need to. its not like i will be working from 7am to 8pm 6 days a week. i plan on having 8-10 weekly mowing accounts and doing numerous side jobs.

to be more professional, i have created a catchy name for my business along with a logo. i will put this on my fliers and business cards.

i'm wondering what i should do in order to have an actual business name listed on my handouts, etc. i don't want any problems.

also if i have 10 accounts in a 28 week season, with side jobs and snow removal, i could make a good $10,000 next year. i don't want to file taxes on that if i don't have to but people are always looking. plus its a win win for me becuase if i was working at a set 9-5 bus boy job making min. wage, i would have taxes pulled from that money so why not do work i love, get payed more and pay taxes on that. in the end thats more beneficial to me.

any knowledge on this subject would be helpfull. thanks.

[Chachi]

If you make it a real business and get a Fed. tax number and file the state paperwork you will have to pay taxes. The state paperwork in Pa is 125$ to file for your fictitious name so not sure what it would cost you in Ohio. Then comes insurance. I pay around $1,200 a year, but that also includes a vehicle and I have all my equipment covered(mowers, trailer, trimmers, etc) and its very nice insurance if someones property would get damaged. Also depending on your state you might have to charge a sales tax as well. I just figure the sales tax in on the total bid. ie: If i bid a job at 50$ that will include the tax. One thing you might want to do is find an accountant that will give you a free consultation to help you out with getting started.

[asianchao123]

thanks those ideas are helpful

[Steve]

At 16, you might just want to keep it simple and call your business John Smith Lawn Care, if your name is John Smith.

Have the checks made payable to you and file your taxes as a sole proprietor.

It's a bad idea to avoid paying taxes.

It's better to get into being legit early on. You will take your business more seriously when you do and you will be building the infrastructure for future growth!

[asianchao123]

that would work except i have a long italian name that wouldn't flow.

to be specific, i'm calling it "Superior Solutions Lawn Care & Maintenance"

i checked and in ohio i pay $50 to file my business with the gov. i still would be considered a sole proprietor. i have to get a service vendor's license once i reach the $5000 dollar mark for earnings in a year. this service vendor's license allows me to charge sales tax for my services. i then have to file the taxes.

Along the lines of not filing taxes, i never was going to "cook the books", i just wasn't sure if maybe you had to be 18. i'm a poster child for doing things the right way and being honest/legit.

thanks a lot steve. by the way, i really like the site. you do a great job. between visiting this site anybody in the industry has all the info/resources they would ever need.

[Steve]

Great! Keep us posted on your updates as you go.