PDA

View Full Version : Concern About Profit


aduttonater
01-15-2011, 09:46 PM
I am moving forward to becoming more legit with my services. Right now I am currently establishing a company name with the city. I've been reading up on information based on "taxes" that will occur quarterly as I continue working my business.

Now here's the question.

I've been currently earning profit with the business, but after wages and expenses I am pretty much just working as an individual for a company myself. The is no major overhead profit.

Once I become legit and start having to pay these taxes, won't I loose more money?

Will this become a liability for me, in the fact that I will not be making as much money as I am now?

jymie
01-15-2011, 09:59 PM
When you go to the store, you pay taxes. It is added on after they ring up the purchases. You incorporate the tax into your charge for your services. Paying taxes helps the economy. Always pass the tax cost onto the customer.

Steve
01-16-2011, 02:16 AM
Now here's the question.

I've been currently earning profit with the business, but after wages and expenses I am pretty much just working as an individual for a company myself. The is no major overhead profit.


What do you mean by overhead profit?

Once I become legit and start having to pay these taxes, won't I loose more money?

Well, I would say you will be left with less profit because you would be paying a % of your profits out as taxes.

Will this become a liability for me, in the fact that I will not be making as much money as I am now?

If you mean will paying taxes become a liability for you? Sure it will. It will be something that is paid and subtracted from what you are able to take home.

I guess anyone who doesn't pay taxes is making more money, but there is a down side to it. It is illegal. So when you factor in the liability of getting caught not paying taxes, that can REALLY effect your income.

What's your thoughts on all that?

aduttonater
01-16-2011, 06:44 AM
I will just charge what I normally charge, then add sales tax either in the bid, or start using different receipts to where I can show how much sales tax they have to pay in addition to the regular cost.

Are there any benefits for paying taxes? I'd like to know if I can get a return for next years filings.

jasonw
01-16-2011, 08:06 PM
The worst part is here in California I have to pay taxes on my business profit then pay income taxes on my personal income from the taxed profit. We get taxed like 38 times on the same money every year.

jymie
01-16-2011, 08:08 PM
They tax you when you earn it and they tax you when you spend it.

jasonw
01-16-2011, 08:39 PM
They tax you when you earn it and they tax you when you spend it.

They tax you three or four times when you think about earning or spending it. Its like the City tells me they charge me to flush the toilet then the water agency charges me to fill the toilet back up. Double taxation blows.

Steve
01-17-2011, 02:46 AM
I will just charge what I normally charge, then add sales tax either in the bid, or start using different receipts to where I can show how much sales tax they have to pay in addition to the regular cost.

Are there any benefits for paying taxes? I'd like to know if I can get a return for next years filings.

Do you have a sales tax certificate? You may need one in your state to be able to collect sales tax.

Also, you need to check if lawn care is a taxable item. It may or may not be.

If you are going to be legit, you need to follow the laws. It's the only way to grow, unless you want to constantly be worried and looking over your shoulder.

aduttonater
01-18-2011, 08:09 AM
Do you have a sales tax certificate? You may need one in your state to be able to collect sales tax.

Also, you need to check if lawn care is a taxable item. It may or may not be.

If you are going to be legit, you need to follow the laws. It's the only way to grow, unless you want to constantly be worried and looking over your shoulder.


I don't have a sales tax certificate, and I'm not sure if Lawn Care is. I am going more of Yard Clean Up Landscaping, but for sure I don't want to be looking behind my back. I'm going to file for $10 downtown either today or tomorrow. Then I have to wait about 2 weeks before I'm officially legally able to work in the city.


They tax you three or four times when you think about earning or spending it. Its like the City tells me they charge me to flush the toilet then the water agency charges me to fill the toilet back up. Double taxation blows.

Yeah Tax Blows! But I'm thinking about trying to use this to my advantage. Maybe tell customers that they are supporting the economy and the growth of a new small business in their area. Plus I want to draw up some bid sheets and start charging customers individually for the services that I offer. Then I can bid higher on each shrub we hedge, tree we trim, and area of weeds we remove instead of giving one big price for it all. Plus a hauling charge, and even service charge for showing up to the job site to start the work.

bruces
01-18-2011, 02:41 PM
where I live,going legit allows you to write off expenses for your business,cell phone,truck,mower,gas,advertising,lunch for clients,parts,and the list goes on and on .I can also pay into and actually collect unemployment insurance as a business owner,we couldnt do that around here very long ago but things have changed a little .Get yourself a good accountant or bookeeper ,and ask questions on what you can deduct and how to work the system to your advantage,huge companies take every advantage they can,so should you ,and it might be possible the government ends up owing you money at the end of the year .

Steve
01-19-2011, 01:03 AM
I'm going to file for $10 downtown either today or tomorrow. Then I have to wait about 2 weeks before I'm officially legally able to work in the city.

Let us know how the process went.