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 > Business > General Business Discussions

General Business Discussions A place to talk about general business discussions.

The evil 5 letter word "TAXES"


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #11  
Old 07-17-2011, 01:35 PM
justin_time justin_time is offline
Justin
 
Join Date: Apr 2006
Location: French River, ON, Canada
Age: 28
Posts: 1,801
Rep Power: 0
justin_time is on a distinguished road
Default

I'd go buy some RRSP (Registered Retirement Savings Plan) and I'd ask your bookkeeper about it because there's a maximum amount you can claim. The rest I'd leave it in the account. You'll need to budget for the following spring.

That's my 2 cents, hope it helped
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


  #12  
Old 07-18-2011, 01:54 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,371
Rep Power: 10
Steve has disabled reputation
Default

Lawn care business tipsLawn Care Business Book
Quote:
I understand what your saying but wouldn't it be nicer to put the $300.00 toward a new weed Whacker instead of giving it to some politician to have a steak dinner ?
I really think you nailed this here. I bet you most people if asked would feel this way. However my take is, it's better to have money in the bank first off. Only buy equipment if you need it.

Money is your business's life's blood. You will need a healthy reserve for all those just in case moments. Like the truck transmission just went out. Or you got sick and needed to take a week, or 2 off.

When you have cash in the bank, you can get over a lot of hurdles that would knock out other smaller or newer lawn care businesses.

A three to six month emergency fund would be a nice goal to have.
__________________
- 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
  #13  
Old 07-18-2011, 06:01 PM
Ducke's Avatar
Ducke Ducke is offline
Senior Member
 
Join Date: Nov 2010
Location: The Duck Pond
Posts: 844
Rep Power: 4
Ducke is on a distinguished road
Default

OK I get the part about savings and using your capital for future loans etc.
Maybe I asked my original question wrong ?
Let see if I can elaborate on it a bit more.

If I am taking a monthly wage from my company and then what is left I am putting away in a bank account for the company.
Will I be taxed on what I make salary wise as well as what I make as an LCO ?
If so which is better ? (Tax wise ) a large yearly salary and a small profit in the company or a small salary and a large profit in the bank ?
or should I set an amount (lets say $2000.00) and anything over and above that figure I take to pay my taxes bills loan payments etc and then what ever is left over from all that is my pay (.25 ) and I still have my original $2000.00 in the bank account and then later as I make more Money with more jobs I can up the amount to $3000.00 so on and so on.
I have been doing some reading on this subject but most of the books I have read are from the USA, I finally got a book that is Canadian and that is what confused me even more.
I may have to break down and go speak to an Accountant

Thanks for all the advice it is helping to make something a little clearer.

Graham
__________________
Ducke's lawn Care and Introducing Duck's Seasonal Decor.
Reply With Quote
  #14  
Old 07-19-2011, 08:21 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,371
Rep Power: 10
Steve has disabled reputation
Default

Quote:
If I am taking a monthly wage from my company and then what is left I am putting away in a bank account for the company.
Will I be taxed on what I make salary wise as well as what I make as an LCO ?
If so which is better ? (Tax wise ) a large yearly salary and a small profit in the company or a small salary and a large profit in the bank ?
I am not an accountant but here is my view.

Whether you have the money in a company account or a personal account. The income from either is going to be taxed.

If you own the company, both your personal money and the company money is still contributing to your net worth. And it is always better to save your money and only buy what you absolutely need.

In the U.S. there are a bunch of different ways you can register a business. You can be a sole proprietor, have an limited liability corp, s-corp or a c-corp.

Now the c-corp is different from others as far as taxes go. The income from the c-corp is taxed and then the salaries paid out are taxed. So if you own a c-corp, you run into a double taxation. I think that is why the s-corps were created to help smaller business owners avoid this.

Does this help?
__________________
- 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
  #15  
Old 07-21-2011, 04:06 AM
picframer's Avatar
picframer picframer is offline
Andy
 
Join Date: Jan 2009
Location: Halifax, Nova Scotia
Posts: 2,885
Rep Power: 9
picframer will become famous soon enough
Default

Steve has it,

Here in Canada in your situation you are a sole proprietor and as such you are going to pay tax on the companies net income and your salary.

If I had time I would sit down and help you however I am going 7 days a week, remember you can apportion a part of your home as a business expense, that includes property tax's, lights, heat, telephone, internet, interest on your mortgage etc.

For the small amount in will cost you talk to your accountant or get a really good bookkeeper.
__________________
Andy
Halifax, Nova Scotia

Last edited by picframer; 07-21-2011 at 04:09 AM.
Reply With Quote
  #16  
Old 12-21-2011, 12:34 PM
SECTLANDSCAPING SECTLANDSCAPING is offline
new member
 
Join Date: Jul 2009
Location: CT
Posts: 1,912
Rep Power: 0
SECTLANDSCAPING is on a distinguished road
Default

Around this time I have a general idea of what Ill pay in taxes. So what I do is buy all my tune up parts for equipment and trucks (belts, blades, plugs, filters, brakes, fluids, tools, tires, chains, trimmer line, bearings). I rather buy it now and get the deduction in a few months then buy it in spring and wait a year to get it back. This is all stuff your going to use either way. It will never hurt to have a extra set of blades a spindle or so on. There small expenses too but they add it.

Sometimes ill purchase equipment that ill need next year. My local mulch yard buys a new truck or loader at this time every year. That can be a gamble though if business becomes slow. Thats why I say get everything to maintain your current equipment now. Then when spring rolls around youll have everything tuned and ready to go.

That would be my advice. Spend what you can, dont spend it all so you make no profit. In a way taxes penalize you for saving and forces you to reinvest earnings.
Reply With Quote
  #17  
Old 12-22-2011, 11:01 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,371
Rep Power: 10
Steve has disabled reputation
Default

For those that don't understand this too well, what do you feel are the benefits to purchasing parts or equipment now? How much are they really saving? What is the difference if they buy it now or next year?
__________________
- 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
  #18  
Old 12-22-2011, 11:26 AM
SECTLANDSCAPING SECTLANDSCAPING is offline
new member
 
Join Date: Jul 2009
Location: CT
Posts: 1,912
Rep Power: 0
SECTLANDSCAPING is on a distinguished road
Default

Quote:
Originally Posted by Steve View Post
For those that don't understand this too well, what do you feel are the benefits to purchasing parts or equipment now? How much are they really saving? What is the difference if they buy it now or next year?
The main difference is if you buy the parts in march or when something breaks in the summer. Youll be waiting a long time to claim it on your taxes. So its coming out your pocket for a while.

The other factor is for every dollar you didnt spend on parts, youll now pay in taxes. I rather have a extra set of everything then a extra $500 tax payment. So either way the money is gone.

If you buy now. Youll be using end of the year surplus money and getting the money back in the form of a deduction in april.
Reply With Quote
  #19  
Old 12-23-2011, 01:45 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,371
Rep Power: 10
Steve has disabled reputation
Default

Quote:
The other factor is for every dollar you didnt spend on parts, youll now pay in taxes. I rather have a extra set of everything then a extra $500 tax payment. So either way the money is gone.
No matter when you buy it, such expenses are still tax deductible right?

The thing I get concerned with is newer business owners tend to take this and run with it and at the end of the year spend everything on stuff they may or may not need.

Ultimately buying parts and writing that expense off as a tax deductible expense really means you are still taking money out of your pocket to purchase the things.

Where something that you can write off as tax deductible is still costing you 70 cents on the dollar isn't it? Depending what your tax bracket is?

It's not like it is free right? If you didn't buy that say $100 part, you would still retain $70 or so after you paid taxes on that $100. So doesn't the question of whether you should buy something like that or not come down to, would you rather have that $70 per $100 in your pocket or would you rather spend it on a part and have a 30% or so discount because you are buying it with non-taxed money?
__________________
- 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
  #20  
Old 12-23-2011, 02:48 PM
SECTLANDSCAPING SECTLANDSCAPING is offline
new member
 
Join Date: Jul 2009
Location: CT
Posts: 1,912
Rep Power: 0
SECTLANDSCAPING is on a distinguished road
Default

Quote:
Originally Posted by Steve View Post
No matter when you buy it, such expenses are still tax deductible right?

The thing I get concerned with is newer business owners tend to take this and run with it and at the end of the year spend everything on stuff they may or may not need.

Ultimately buying parts and writing that expense off as a tax deductible expense really means you are still taking money out of your pocket to purchase the things.

Where something that you can write off as tax deductible is still costing you 70 cents on the dollar isn't it? Depending what your tax bracket is?

It's not like it is free right? If you didn't buy that say $100 part, you would still retain $70 or so after you paid taxes on that $100. So doesn't the question of whether you should buy something like that or not come down to, would you rather have that $70 per $100 in your pocket or would you rather spend it on a part and have a 30% or so discount because you are buying it with non-taxed money?
This is why I said spend what you can. If you were thinking of adding a new push mower go for it. I wouldnt go get a ztr so I didnt have to pay taxes. It would be very unwise to just blow money not to pay the tax man.

Yeah you could deduct it the following year. Thats why its a preference. Spend now when you have a surplus of cash or spend in the spring before money is coming in. The only problem with spending in the spring is your waiting a year to get the tax deduction vs a few months.
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
"Part Timers", "Low Ballers" & Self Employed doug1980 General Talk 22 07-24-2011 05:32 PM
Starting a Lawn Care Business with "Lawns of Wealth" startlawnbusiness Promote your products or services 0 09-08-2010 03:29 PM
Have you seen "Simply Mowing" door hanger/flyer template? akg62 Starting a lawn care business. 1 04-17-2009 02:02 PM
NEEDED: 1 landscaping company to profile LocalAdLink's "Geo-targeting" advertising Green_Day Promote your products or services 10 04-08-2009 09:48 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Help With Snow Blowing...
Robertf31
09-13-2014 10:55 PM
Today 09:04 PM
by Robertf31
7 247
Getting lowballed!
PineHillLawn
06-27-2012 07:23 AM
Today 05:18 PM
by jrs.landscaping
21 4,609
Tribulations of working...
stevef1201
09-13-2014 08:37 AM
Today 05:16 PM
by stevef1201
3 189
Non-Stop Summer?
SouthallMowing
Yesterday 10:51 PM
Today 05:12 PM
by brian'slawncare
2 96
Lowballers scrubs &...
Darksteel
01-13-2014 07:35 AM
Today 04:34 PM
by SGL1
52 6,351
Poll - net income
Dan5082
11-15-2010 08:08 PM
Today 03:53 PM
by jrs.landscaping
9 2,976
thinking about throwing...
veteranslawncaresystems
09-09-2014 10:31 PM
Today 03:41 PM
by Steve
12 596
Compare this summer to...
Steve
09-03-2014 12:52 PM
Today 03:39 PM
by Steve
13 885
Hello
Robertf31
09-12-2014 10:34 PM
Today 03:17 PM
by Steve
2 215
Newbie......Again
Jibber
09-13-2014 12:17 PM
Today 02:54 PM
by Sprinkler Buddy
2 186
snowplowing
jshak40
09-01-2014 07:20 AM
Today 02:41 PM
by Steve
19 1,081
Replacing a Shindi T-27
Dan Tanner
09-13-2014 12:59 PM
Today 02:31 PM
by Steve
1 155
need help with starter...
GoGreenerKS
09-12-2014 04:23 PM
Today 02:25 PM
by Steve
3 234
Brake job!
kslawn
08-30-2014 07:49 AM
Today 02:16 PM
by Steve
12 929
Hello
jawnebgoode
08-28-2014 08:37 PM
Today 02:15 PM
by Steve
3 730
Employee uniforms
Gerardo_Landscape
01-21-2014 11:11 PM
Today 02:12 PM
by Steve
5 844
Greetings from the north
Northwoods Outdoors
09-13-2014 08:55 AM
Today 02:07 PM
by Steve
1 170
darleneh
darleneh
Today 12:33 PM
Today 02:07 PM
by Sprinkler Buddy
1 40
My 1st bid
WesleySnips
06-11-2014 03:13 PM
Today 02:05 PM
by Steve
29 1,616
Price to apply fertilizer
SS.Lawncare
Today 11:10 AM
Today 01:56 PM
by SS.Lawncare
3 70
New Aerator
Chaz
09-09-2014 11:43 PM
Today 01:50 PM
by Steve
9 446
Yearly contract Pricing
jrob0691
08-21-2014 08:57 AM
Today 01:23 PM
by stevef1201
8 1,104
Scag turf tiger hydrolic...
ExtremeLawncareServices
09-04-2014 10:55 PM
Yesterday 03:06 PM
by ExtremeLawncareServices
8 641
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
09-13-2014 09:14 PM
by ExtremeLawncareServices
116 7,809
getting ready to start
calebmoss
05-23-2011 09:35 PM
09-11-2014 12:21 PM
by Steve
34 11,094
Stihl pull cord replace
SGL1
09-03-2014 09:22 PM
09-10-2014 12:25 PM
by Steve
9 650
Softball field
kslawn
08-15-2014 09:28 AM
09-10-2014 12:16 PM
by Steve
18 1,377
Lawn Route Templates
Landscaper1165
08-30-2014 01:52 PM
09-09-2014 08:05 PM
by Landscaper1165
4 858
New truck and trailer...
Johnny Rocket
05-14-2012 03:41 PM
09-09-2014 07:23 PM
by Matther777
18 6,451
What gets you bad press?
Steve
09-09-2014 11:48 AM
09-09-2014 07:21 PM
by Matther777
2 362
Signs on your snow plow?
Steve
01-15-2007 01:07 AM
09-09-2014 11:42 AM
by Steve
19 6,102
Exmark Lazer Z S-Series...
BLC7
08-22-2014 10:18 AM
09-08-2014 08:08 PM
by avetslawncare
12 1,151
New to the business
flamingyouth87
09-05-2014 11:52 AM
09-08-2014 11:55 AM
by Steve
3 560
Hello from Ohio
kurtwin
08-28-2014 05:06 PM
09-08-2014 11:51 AM
by Steve
7 842
Facebook
element009
03-23-2011 08:36 AM
09-07-2014 07:35 AM
by avetslawncare
24 7,607
Help pricing cut down 7...
Bradcook21
08-26-2014 11:17 PM
09-06-2014 02:09 PM
by Bradcook21
8 924
billing matters
sbuchanan8154
09-05-2014 09:56 AM
09-05-2014 03:00 PM
by Steve
3 536
Thoughts
googus
09-05-2014 07:28 AM
09-05-2014 02:23 PM
by Steve
2 498
Backflow Tester
flowcheckllc.2014
09-03-2014 04:37 PM
09-05-2014 02:15 PM
by Steve
3 575
Collections & collection...
jscarolina
09-03-2014 04:39 PM
09-04-2014 03:14 PM
by Steve
2 599
Sod
RosalesLawnCare
08-27-2014 03:47 PM
09-04-2014 02:42 PM
by RosalesLawnCare
4 847
Lawn needs top soil What...
jymie
08-26-2014 11:01 AM
09-03-2014 12:07 PM
by Steve
7 919
Hello! New here and...
CaliforniaFriendly
08-29-2014 11:30 AM
09-03-2014 11:15 AM
by Steve
4 822
Trailer tires
J.A.S.LawnService
09-01-2014 10:17 AM
09-02-2014 03:27 PM
by Steve
3 735
Mowing 7 acres
avetslawncare
08-31-2014 04:24 PM
09-02-2014 03:11 PM
by Steve
5 810
New to the industry-...
Lsmain
08-31-2014 10:53 AM
09-02-2014 02:58 PM
by Steve
1 736
Walk Behinds and Texas...
SGL1
08-26-2014 03:53 PM
09-01-2014 11:36 PM
by SGL1
7 920
Stihl engine isn't...
Marcintosh
08-12-2014 08:30 PM
08-28-2014 09:28 PM
by Marcintosh
12 1,222
Say Hello !!!
Steve
03-19-2007 11:18 AM
08-27-2014 08:33 PM
by kurtwin
1,187 333,638
How do I approach...
Bradcook21
08-21-2014 01:48 AM
08-26-2014 05:08 AM
by Billy Goat
12 1,331
» Popular Tags
4wd apartment complex auger birdscaping blades charge christmas lighting collections credit card processing customers decorating ditches exmark ferris first truck fundraiser georgia gopherhaul grass gravely growing a lawn care business holiday lighting how much to charge how to bid husqvarna john deere quik trac kansas city kawasaki landscape services lawn lawn care lawn care business podcast 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 leaf leaf removal lighting brass outdoor lights marketing mulch estimate new and restored landscapes new buisness past due podcast promotion pto redmax rotating running a business savannah scag season seo small engine repair snow sprayer starting a business start up lawn care business stihl top dresser toro toro grand stand trailer trimmer rack turfgrass consulting walker
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 09:36 PM.


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

All times are GMT -5. The time now is 09:36 PM.

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