View Full Version : Buying a Trailer
09-19-2010, 06:55 PM
So i've recently acquired a couple customers and want to get a trailer to haul my equipment before i completely destroy my wifes SUV. I have not gone "legit" yet with company. Would you guys recommended going "legit" before buying a new trailer so i charge it to the company so i can then claim it on my taxes and get a refund for it next year? Would i even be able to to that? thanks for your help.
09-19-2010, 08:48 PM
Why not go ahead and become "legit?" It really doesn't take much and you will be so much further ahead with your ability to bid commercial jobs and take advantage of tax breaks as your accountant advises.
Aside from all that, a trailer will make a huge difference to your business. Not only will you be able to load/unload faster and haul supplies more effectively, the perception your customers will have of you as a professional lawn care company will increase when they see a commercial duty trailer hauling commercial quality lawn care equipment.
09-20-2010, 08:34 AM
Well said Keith. Get legit. Getting caught not being legit is not worth the fines in the long run. Check on craigslist for a trailer. I got mine there and it was only a couple years old. Best investment I have made for my business, 1st thing I bought for it. Get business insurance, very valuable to have. Don't worry about not having enough customers right now, that will change pretty quickly in a year or two. Advertising goes along way. Door to door flyers, canvas streets your already on, get your company name on google maps, I can't tell you how much that has impacted my business, have a website that will rank for you. For example in the keywords say things like "your town, lawn care, landscaping, mowing, mention other towns you service, other services you offer etc. It's not that hard to get the business to grow, so don't hold back on getting legit. Alot of people if they don't see on the advertising that you are Licensed and insured, they move onto the next company. Good luck!
09-20-2010, 12:50 PM
I went with the trailer 1st, and it wasn't long before i had some customers! soon after went legit.
enclosed trailer: more expensive up front but you can leave all your equipment in it at home and at the job site without anyone knowing what's inside it, and it's harder to just walk up and steel something out of. plus it gives you room in your garage, and eventually advertising space!
You CAN'T simply get a refund on you taxes! period.
if you made $2000.00 all summer, and you paid 2000 for the trailer, you would have made $0.00 in profit(key word). you would then pay taxes (both local and Fed) on your profit for the year. still being zero!
the business did pay for the trailer, but no-one will be refunding you anything. so basically your not paying taxes ("writing it off") but you still had to purchase the trailer. plus when you sell it you may owe taxes too.
You may wish to look into use-tax too, its a hokie scam the govt likes to use. once you have written off the purchase of the trailer, each year you use it for your business they can charge you a use-tax. Generally Feds, let you decide what the value is and you pay a percentage of that, if you don't ever pay it and they come knocking on your door, they decide the value, back date it to the 1st time you wrote it off, and charge you their ammount. Either way make sure you're commited, before going legit, if you are get it done! get your stuff together, and get an accountant to help you, or take some classses (small business) in the cold seasons.
10-25-2010, 11:57 PM
or trade in the suv for a silverado.. your wife can drive it and you can landscape
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