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Starting a lawn care business. How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.

Starting this summer


Starting a lawn care business.

How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.
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  #11  
Old 01-06-2011, 07:29 PM
Jack Jack is offline
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Quote:
Originally Posted by Steve View Post
I would try to look at your customer route and pack as many of the customers you can in on one or two days. Make the routes as tight as possible.

The less driving you do, the more profits you will make.

As you grow, expand into mowing on more days.



What did you find?
I just learned that Landscape Architecture is a whole other field of work, and that what the license was for. I think that I will stick to res. this summer, would $1 million in insurance really be needed? I was thinking more like 500k. Also, is it just like any other insurance? Pay Monthly, 6 month, or yearly?
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  #12  
Old 01-06-2011, 08:22 PM
Hedgemaster Hedgemaster is offline
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Quote:
Originally Posted by Jack View Post
I just learned that Landscape Architecture is a whole other field of work, and that what the license was for. I think that I will stick to res. this summer, would $1 million in insurance really be needed? I was thinking more like 500k. Also, is it just like any other insurance? Pay Monthly, 6 month, or yearly?

Yeah, the whole "licensing" thing gets confusing because it varies wildly by state.
Here in PA, you don't need a license to mow lawns, but you do to apply weed control type fertilizers and such. And yes, landscaping is a whole different ball game with all sorts of extra things you need to be aware of - at least here in PA.

Also, for someone like myself, who is currently doing small home repairs as well, I need to register with the state, as all home improvement contractors who expect to make over $5,000/yr must pay/register bi-annually - otherwise, you may not legally operate your business - can't even advertise. The PA# that you are assigned must be placed on EVERYTHING that bears your name. Business cards, contracts, bids, any advertisement you run, your truck (if your name appears on it)...

I know that for that registration I mentioned above, the state mandates a minimum of $500,000 liability insurance to be carried. Note that the difference in your premium between $500,000 and 1 Million coverage is literally a few dollars, and it doesn't even pay to buy "less". You'll find this out when you start calling for quotes. Also, every company is different as far as payment plans are concerned. I noted that the "cheaper" policies often wanted payment in full for the year up front, while other ones offered several payment options. Most times if you pay monthly they add a few dollars as a service charge, but it's sometimes easier to spread it out like that. I'm paying mine off in 3 consecutive, monthly payments, and I'll be done for the year.




TAX NOTE!!!

As Steve mentioned it previously, I will mention that you need to determine if lawn care is a taxable service where YOU live. Here in PA, it IS taxable, believe it or not. It's absolutely INSANE the way they break things down...
mowing grass - taxable

Here... I know it may not apply to you, and don't let it overwhelm you, but I'm sure someone reading will be interested in hearing this tax insanity.

"From PA Code 55.6. Lawn care services."
Quote:
Examples of taxable services. The following are examples of taxable lawn care services:

(1) Fertilizing lawns.

(2) Mowing, trimming, cutting or edging lawns.

(3) Dethatching lawns.

(4) Applying herbicides, insecticides or fungicides to lawns.

(5) Raking grass on lawns.

(6) Applying treatments for weed, pest, insect or disease control to lawns.

(7) Watering lawns.

(8) Applying lime to lawns.

(9) Aerating lawns.

(10) Providing lawn evaluation, consultation or soil testing services on lawns, if purchased in conjunction with other lawn care services, regardless of whether the costs of the lawn evaluation, consultation or soil testing services are separately stated on the invoice.

(11) Overseeding, sodding or grass plugging of existing lawns.

(12) Trimming or pruning shrubbery when performed in conjunction with other lawn care services.



Examples of nontaxable services. The following are examples of services which are not taxable lawn care services:

(1) Seeding, sodding or grass plugging to establish a new lawn. Seeding, sodding or grass plugging in conjunction with building construction will be presumed to be a new lawn.

(2) Trimming, pruning or fertilizing trees.

(3) Planting or removing shrubbery or trees.

(4) Providing lawn evaluation, consultation or soil testing services, if not purchased in conjunction with other lawn care services.

(5) Designing lawns or landscapes.

(6) Applying herbicides or fungicides to shrubbery, trees, flowers or vegetables.

(7) Maintaining shrubbery, flower or vegetable beds, such as by mulching, tilling, weeding or fertilizing.

(8) Separately stated charges for leaf raking.

Hope I didn't scare you with this post!
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Old 01-06-2011, 08:36 PM
Growing Green Growing Green is offline
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Those taxes are ridiculous! Freakin gov't needs to chill out on all this tax bull crap. Ugh!

Matt
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Old 01-07-2011, 11:12 AM
xpertlawnman xpertlawnman is offline
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Is it any wonder the population of "Taxylvania" shows no growth year after year. Who in their right mine would move here with all of the money you have to shell out for taxes. The real estate taxes in my area are insane, and the local school board just raised them again. I thought all of this gambling revenue was going to be used to reduce our property taxes. Then they just raised the tolls on the PA Turnpike by 10%, it cost me close to 5 bucks to go 50 miles to see my inlaws for the holidays. Sorry for the rant guys.
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Old 01-07-2011, 06:26 PM
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Quote:
I think that I will stick to res. this summer, would $1 million in insurance really be needed? I was thinking more like 500k. Also, is it just like any other insurance? Pay Monthly, 6 month, or yearly?
I would think that could work.

As far as payment, you might find you get a break if you pay more upfront than if you pay monthly.
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