Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Lawn Care, Landscaping, and Property Management Forums > General Talk

General Talk If it doesn't fit anywhere else, post it here.

Accountant/Sales Tax


General Talk

If it doesn't fit anywhere else, post it here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 03-29-2011, 10:59 PM
element009's Avatar
element009 element009 is offline
Senior Member
 
Join Date: Mar 2011
Location: Ocean County, NJ
Posts: 176
Rep Power: 4
element009 is on a distinguished road
Default Accountant/Sales Tax

Hi all,

1. My business is in NJ, and so part of this question is NJ specific. I had a meeting with SCORE (a free small business counseling service) and they told me that lawn care was not a service that required me to charge my customers sales tax. However, I've been doing more research, and now I think I actually do need to charge sales tax. Does anyone from NJ know the right answer to this. I'm just doing lawn maintenance right now (cuts and clean-ups basically).

2. I am just getting off the ground and trying to keep costs low. How much will an accountant cost me? Can I do without one in the beginning? Any advice would be greatly appreciated.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 03-30-2011, 04:58 AM
mathteacherj mathteacherj is offline
Junior Member
 
Join Date: Jan 2011
Location: Fort Wayne, IN
Age: 32
Posts: 9
Rep Power: 4
mathteacherj is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
I too have been looking into this lately. Keeping in mind that I'm in Indiana, here's what little understanding I think that I have. You should be able to get a tax exempt number where you will not pay taxes on the products that you buy for your company. (or at least the disposables) That tax, you charge to your customer and that is how the state gets paid. I THINK!!! :-)

And I'm thinking that my accountant is between 35-50/hour. Good luck!
Reply With Quote
  #3  
Old 03-30-2011, 09:47 AM
Paineless Creations's Avatar
Paineless Creations Paineless Creations is offline
Senior Member
 
Join Date: Jan 2010
Location: West Richland, WA
Posts: 205
Rep Power: 5
Paineless Creations is on a distinguished road
Default

Quote:
Originally Posted by element009 View Post
Hi all,

1. My business is in NJ, and so part of this question is NJ specific. I had a meeting with SCORE (a free small business counseling service) and they told me that lawn care was not a service that required me to charge my customers sales tax. However, I've been doing more research, and now I think I actually do need to charge sales tax. Does anyone from NJ know the right answer to this. I'm just doing lawn maintenance right now (cuts and clean-ups basically).

2. I am just getting off the ground and trying to keep costs low. How much will an accountant cost me? Can I do without one in the beginning? Any advice would be greatly appreciated.
I went round and round with this also. But after reading the DOR (Washington State) website I charge sales tax also. I know that does not help in NJ. But I thought I would share I charge sales tax. What I found out is that this is NOT a PERSONAL Service, Like haircutting,nails,chiro,doctor.. ETC.. Those items you do not charge sales tax
Reply With Quote
  #4  
Old 03-30-2011, 12:03 PM
Liberty Landscaping LLC Liberty Landscaping LLC is offline
Senior Member
 
Join Date: Oct 2009
Location: Woodbridge, NJ
Posts: 243
Rep Power: 6
Liberty Landscaping LLC is on a distinguished road
Default

Hey
I am in NJ too. I charge it. I asked my accountant and my lawyer both said I have to charge. On the accountant. You have to claim it as well as pay yourself or if you go for a line of credit IE a business loan, mortgage, auto loan you show income. That's what they all told me about that too. Good luck if you need anything message me.
__________________
Liberty Landscaping LLC
www.libertylndscpng.com
Woodbridge, NJ
Reply With Quote
  #5  
Old 03-31-2011, 11:22 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,688
Rep Power: 10
Steve has disabled reputation
Default

Although this can change, it appears normally, services that create capital improvements on a property are taxable, like planting a tree. Mowing a lawn tends to not be viewed as a capital improvement.

There is a bunch of information on this that you can read more on here

Informational Guide - Landscaping Services and New Jersey - Sales Tax

Tax Notes - Landscaping Services

Which says.

Quote:
Repair and Maintenance Services
The Sales and Use Tax Act currently imposes tax on charges for maintaining, servicing, and repairing real property. N.J.S.A. 54:32B-3(b)(4). Repair and maintenance services performed by landscapers are subject to tax under this provision. The following are examples of taxable repair and maintenance services performed by landscapers:

* Lawn mowing
At times, you will get an adviser who will err on the side of caution and tell you to charge sales tax on an item you don't need to. So it is important you do your own research to confirm.

Let me know if this helps.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #6  
Old 03-31-2011, 06:37 PM
element009's Avatar
element009 element009 is offline
Senior Member
 
Join Date: Mar 2011
Location: Ocean County, NJ
Posts: 176
Rep Power: 4
element009 is on a distinguished road
Default

Thanks for the help guys!
Reply With Quote
  #7  
Old 03-31-2011, 10:07 PM
ToastedToad's Avatar
ToastedToad ToastedToad is offline
Member
 
Join Date: Mar 2011
Location: Pac NW
Posts: 64
Rep Power: 4
ToastedToad is on a distinguished road
Default

Quote:
Originally Posted by Paineless Creations View Post
I went round and round with this also. But after reading the DOR (Washington State) website I charge sales tax also. I know that does not help in NJ. But I thought I would share I charge sales tax. What I found out is that this is NOT a PERSONAL Service, Like haircutting,nails,chiro,doctor.. ETC.. Those items you do not charge sales tax
I concur for Washington State. Most customers are shocked to see tax included for mowing services.
Reply With Quote
  #8  
Old 04-01-2011, 11:32 AM
Paineless Creations's Avatar
Paineless Creations Paineless Creations is offline
Senior Member
 
Join Date: Jan 2010
Location: West Richland, WA
Posts: 205
Rep Power: 5
Paineless Creations is on a distinguished road
Default

Quote:
Originally Posted by ToastedToad View Post
I concur for Washington State. Most customers are shocked to see tax included for mowing services.
Hey where in Washington are you? I am in the Tri-Cities
Reply With Quote
  #9  
Old 04-01-2011, 07:34 PM
Tom53 Tom53 is offline
new member
 
Join Date: Apr 2011
Location: Northwest Iowa
Posts: 57
Rep Power: 0
Tom53 is on a distinguished road
Default

I just did my last years taxes today, and spoke to the accountant about this.
In Iowa it IS a taxable service. There are 2 ways I can handle it. First put the sales tax on the invoice and collect it. Most people here would be shocked to see it, as they don't pay tax to the high school kids who used to mow for them. OR and this is how I will handle it, I just charge them the set amount and I just eat the sales tax on that amount. Not much for one small residential property, which is all I do for now, but it could really add up for those with a large number of customers or commercial properties. If I did commercial properties, it would be taxed on the invoice. I believe they would expect it.

The formula here is to divide the cost by 1.07 % to get the tax due.

Example a $40.00 job, customer pays me $40.00, and I keep my books and record that I keep #37.38 and the other $2.62 is what I will owe the state for sales tax on that job. We do not have to pay sales tax on snow removal though.
Reply With Quote
  #10  
Old 04-02-2011, 07:51 AM
turf&tree turf&tree is offline
Member
 
Join Date: Dec 2010
Posts: 67
Rep Power: 5
turf&tree is on a distinguished road
Default Sales tax

Here in Ohio we have been charging it for about 18-20 years. The state came to us back then and told us we had to charge for it. It is based on each counties tax rate that you would work in. 95% of the customers are ok with it. Some opt to pay cash and do not get taxed by me. But yes if you are buying the products like fert and mulch you do not pay sales tax on it at the p.o.p
But need to charge the customers for the tax. I also set up an equipment repair company on the side and do not pay tax on equipment or parts as well.
They are assuming I will be reselling them through that business.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Meet with Accountant tiedeman General Business Discussions 1 01-30-2007 08:09 AM
Success at sales Steve Show Off - Picture Post - Photo Gallery 0 01-24-2007 05:27 AM
sales tax (?) Tandem Gopher Software Support Archived Question & Answers - Read Only 4 04-01-2005 11:18 AM
different sales tax weed-eat Gopher Software Support Archived Question & Answers - Read Only 1 05-14-2004 08:05 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Facebook
element009
03-23-2011 09:36 AM
Today 12:08 PM
by Knaubone
37 9,843
Ideas on a large bid
Knaubone
Today 11:57 AM
Today 11:57 AM
by Knaubone
0 16
Repair or replace the...
lxarth
12-17-2014 05:07 PM
Today 10:21 AM
by lxarth
8 248
Stander Vs. Zt
totalscape
Yesterday 07:57 PM
Today 09:35 AM
by rmccutchan
3 68
what do you "love" to...
calebmoss
07-06-2011 10:05 PM
Today 12:52 AM
by rmccutchan
31 9,021
I'm BACK!
SuperiorPower
12-16-2014 11:08 PM
Yesterday 11:33 PM
by SuperiorPower
7 241
These are the days on...
ExtremeLawncareServices
03-22-2014 10:12 AM
12-19-2014 09:45 PM
by ExtremeLawncareServices
189 16,699
Georgia Boys!
Chilehead
12-18-2014 10:23 PM
12-19-2014 09:36 PM
by Chilehead
2 110
Employee job training...
brookline
12-15-2014 08:15 PM
12-19-2014 07:48 PM
by SuperiorPower
9 343
Hello from Md
homey
12-17-2014 06:55 PM
12-19-2014 06:00 PM
by homey
5 194
Has Obamacare helped or...
Steve
12-18-2014 04:37 PM
12-19-2014 05:43 PM
by stevef1201
3 133
What Fertilizer to Use?
acrajchel
04-07-2014 02:56 PM
12-17-2014 01:11 PM
by Steve
23 3,004
Grass hopper mower
ExtremeLawncareServices
12-05-2013 09:51 AM
12-17-2014 09:40 AM
by SuperiorPower
34 6,154
Peco Bagger
AGPS
11-18-2014 02:20 PM
12-17-2014 09:13 AM
by SuperiorPower
15 1,355
New to Gopher Haul-from...
323k13l
12-12-2014 10:34 PM
12-15-2014 02:58 PM
by Steve
3 319
hi
creteland
12-12-2014 09:06 AM
12-15-2014 01:45 PM
by Steve
5 315
New addition to my small...
googus
12-12-2014 07:36 PM
12-15-2014 07:47 AM
by googus
4 388
Ferris IS700Z
rmccutchan
12-14-2014 01:10 AM
12-14-2014 11:41 PM
by rmccutchan
4 284
Charge what the market...
Billy Goat
12-09-2014 12:39 PM
12-14-2014 06:39 PM
by biglee
20 833
Hi from IL
steveinil
11-25-2014 02:07 PM
12-12-2014 07:18 AM
by steveinil
4 832
Utility Company Right of...
eastsidelandcare
12-11-2014 04:54 PM
12-11-2014 04:54 PM
by eastsidelandcare
0 296
leaf removal
Double J LLC
10-03-2014 05:24 PM
12-11-2014 04:50 PM
by eastsidelandcare
33 4,127
suggestions on full lawn...
Brian3137
12-10-2014 07:18 PM
12-11-2014 03:41 PM
by Steve
6 417
new to me box truck
jrayb39667
03-06-2014 11:20 PM
12-11-2014 09:43 AM
by Sprinkler Buddy
18 3,411
Hello from SW FL!!
5StarLawnscaping
12-05-2014 02:35 PM
12-10-2014 02:45 PM
by WesleySnips
7 657
Echo pb200 blower fuel...
googus
12-06-2014 09:03 PM
12-09-2014 06:35 PM
by Steve
3 508
Are you prepared for the...
Steve
12-02-2014 04:13 PM
12-09-2014 06:22 PM
by Steve
7 931
Email Address Name
Just Cuts
12-07-2014 09:49 PM
12-08-2014 03:15 PM
by Steve
3 452
Inspection form
stevef1201
12-07-2014 10:38 AM
12-08-2014 03:10 PM
by Steve
1 450
Truck, Trailer,...
hawthornelawncare
12-23-2011 01:01 AM
12-08-2014 12:37 PM
by jrs.landscaping
108 34,250
Back Pack Blower
Ian Lovejoy
11-09-2014 08:41 AM
12-07-2014 06:35 PM
by stevef1201
24 1,743
Innovation by mandate
bayoubandit
11-29-2014 01:33 PM
12-06-2014 03:27 PM
by SGL1
12 997
Trying something new,...
ExtremeLawncareServices
09-21-2014 10:07 PM
12-05-2014 11:06 AM
by Steve
9 2,290
Good help is hard to find
Hanks Lawn Care Services
11-19-2014 03:27 PM
12-04-2014 01:32 PM
by stevef1201
15 1,477
How many hours is too...
Just Cuts
12-04-2014 09:00 AM
12-04-2014 01:02 PM
by Just for Cuts
6 633
Does this sound like a...
googus
12-03-2014 07:47 AM
12-04-2014 12:37 PM
by Steve
5 714
New website
Chilehead
11-20-2014 04:39 PM
12-04-2014 12:27 PM
by Steve
14 1,254
New website
SGL1
12-02-2014 10:55 PM
12-03-2014 11:17 PM
by BLC7
19 888
Websites, how long...
Dan Tanner
03-09-2014 08:29 AM
12-03-2014 11:12 PM
by SGL1
21 3,267
I Want to buy old...
ExtremeLawncareServices
10-10-2014 11:04 PM
12-03-2014 10:36 PM
by ExtremeLawncareServices
8 1,892
GPS trackers for...
Billy Goat
12-02-2014 06:09 PM
12-03-2014 07:17 PM
by Steve
8 734
My site is on fronts page
tbtigers03
11-14-2014 05:58 PM
12-03-2014 06:31 PM
by SGL1
17 1,480
Hiring Subs over Temps
Billy Goat
12-02-2014 06:26 AM
12-03-2014 01:24 PM
by Steve
3 661
Thanksgiving cards
Steve
11-10-2008 11:57 AM
12-02-2014 11:11 PM
by SGL1
11 9,554
New parking area
ExtremeLawncareServices
11-07-2014 09:47 PM
12-02-2014 02:17 PM
by jrs.landscaping
12 1,508
Pressure Washing...
WesleySnips
07-31-2014 07:13 PM
12-02-2014 08:47 AM
by SGL1
6 1,531
old contracts
bayoubandit
11-29-2014 11:10 AM
12-01-2014 11:20 AM
by Steve
3 728
Hi to you NOTHERNERS
stevef1201
11-11-2014 05:56 PM
12-01-2014 10:54 AM
by Steve
9 1,301
Lawn care truck
Steve
10-10-2009 03:40 AM
12-01-2014 10:45 AM
by Steve
32 15,218
Intuit Quickbooks...
CDLAWNCARE
11-30-2014 10:19 AM
11-30-2014 10:19 AM
by CDLAWNCARE
0 637
» Popular Tags
4wd apartment bid apartment lawn care estimate applying bid bob villa bush care commercial decorating deliquentaccounts demonstration ditches edging employee problems ferris first truck four wheel drive gopherhaul grass hardscapes hills hiring how much to charge how to hydraulic installation introduction landscape services lawn lawn care lawn care busines plan lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care seo lawn care website lawn care website seo managing a lawn care business mulch mulch price past due patio install per hour charge podcast profit on employee reo scag v-ride scripts shell snow snow plowing sprayer starting a business starting a lawn care business start up lawn care business steve sulky toro tractor auger trailer mate pro tree truck new used landscape turfgrass consulting up sell employee walk behind won't return wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 01:17 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 01:17 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy