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Coleman_Kayak1 · Posted: Mon Mar 01, 2010 12:43 am Post subject: Legal Advice?

Okay, figure this ain't really the place to ask this, but I figured I had nothing to loose.

So for a couple years now, I've been doing yard-work here and there. I've had a couple machines and could usually bring in some money each month. It was all under-the-table, usually $20 or so. Nothing really big, just "I'll do it for x amount of dollars"

Well last year I got more and more jobs and I was eventually doing 5-6 jobs a week in the summer. I also managed to score a free riding mower, push mower, and a couple weed wackers, so now my grandpa can't give me crap about wearing out our personal ones Smile

Anyway, this year, spring, I've got plenty of calls about people wanting jobs done, some even wanted a monthly contract to mow. Here's where it gets sketchy. I would like to print "Palmer Lawn Services" on the side of my trailer with a phone number, and maybe on my equipment as well. But I know that to do that, I should really be registered as a business.

So I'm wondering how would I go about such a thing? I'm thinking this spring/summer I may bring in up to 5 grand, so It probably wouldn't be a bad plan to form a small business and file tax forms and the like. Does anybody have ANY advice or experience on this? Any help would be appreciated.
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1969 Aluminum V-Hull
1964 Evinrude Lightwin 3hp (Been in family since new)

1985 Gregor Octapon Pontoon Boat
1998 Yamaha C40

Under Construction: Motorized Sufboard
(Hopefully) 10hp Evinrude Powerplant

Calico · Posted: Mon Mar 01, 2010 10:13 pm Post subject:

Providing a service like lawn care should not require you to collect sales taxes so the business would be pretty simple accounting wise as long as you are only cutting grass and not selling it, fertilizing it (selling fertilizer) etc. You'd probably want to form an LLC for simplicity and personal protection if you do form a legal business. Your state's department of commerce should have all the info you need and probably a guided step by step worksheet on forming the business. You should be able to do it all online, at least we can in WI. It is pretty cheap to do so but accounting can add cost since your tax returns will get a little more complicated, the business needs to file a separate return. Search 'forming limited liability company oregon' for starters. A CPA would also be able to advise you on which direction to go.

There is nothing wrong with putting your name and number on your vehicle or advertisements right now as long as you are reporting your earnings. By doing that you are operating as a DBA or 'doing business as'. The state would know you as Colemen Kayak DBA Palmer Lawn Service. This should cost you nothing. The major problem with this is that you are personally liable for debt and damages incurred by your business because the business is essentially you. The LLC puts a separation between the business and yourself.

I would be inclined to just go the DBA route if I were only mowing lawns for Summer money and working alone, but that's just me and there are risks. Check with Oregon's dept. of commerce, they should have tons of info for you. Also if you have someone prepare your or your family's taxes you could ask them to point you in a direction.

Don't take any of this as advise, as I have zero legal credentials and each state is different.
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Strange but not a Stranger

Coleman_Kayak1 · Posted: Tue Mar 02, 2010 7:53 pm Post subject:

Thanks for the advice Calico. I contacted the Oregon Dept. of Commerce and they said.... well pretty much what you said. I did decide to go the DBA route, at least until it grows some more (I can dream) Very Happy

_________________
1969 Aluminum V-Hull
1964 Evinrude Lightwin 3hp (Been in family since new)

1985 Gregor Octapon Pontoon Boat
1998 Yamaha C40

Under Construction: Motorized Sufboard
(Hopefully) 10hp Evinrude Powerplant

Calico · Posted: Tue Mar 02, 2010 10:21 pm Post subject:

There ya go, best of luck to you. I'll give you plenty of referrals. Might be a long commute though Mr. Green

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Strange but not a Stranger

Coleman_Kayak1 · Posted: Wed Mar 03, 2010 7:32 pm Post subject:

May have to add a slight surcharge for travel time and gas money too Very Happy

_________________
1969 Aluminum V-Hull
1964 Evinrude Lightwin 3hp (Been in family since new)

1985 Gregor Octapon Pontoon Boat
1998 Yamaha C40

Under Construction: Motorized Sufboard
(Hopefully) 10hp Evinrude Powerplant

Dave JZ · Swabby Joined: 18 Dec 2005 Posts: 264 Location: Wymore, NE

When we had the farm we got on IRS website and had them issue us an Employee ID number. That way our expenses were deductable. It was free to have the IRS give us this number and it was all done online and you recieve the number right away. My advise would be make sure if you do that.... you know wether you'll have help or not that you will be paying. I found it was alot easier to to do all this ahead of time instead of changing it (I needed to change) This way proper taxes can be accounted for on employees. We found if we wanted to "license" the name we did business as it was about $150 for OUR STATE only. This only kept others in Nebraska from doing business with our name. As long as your reporting income and expenses there shouldn't be any issue.

Might want to check about that sales tax thing... wasn't there a labor tax put in place?? or has it been trashed by now??

I'd do it as cheap as possible until/if it becomes profitable.. if that happens then you can always change it that time.

Remember I'm no pro and you shouldn't listen to my advise...
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it's only what you make of it!!!

Dave JZ · Swabby Joined: 18 Dec 2005 Posts: 264 Location: Wymore, NE

On a side note: It is a good sign that individuals like yourself are thinking about starting businesses. In the past small business openings is a good sign that the economy is headed in a better direction!!
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it's only what you make of it!!!

Coleman_Kayak1 · Posted: Fri Mar 05, 2010 1:09 am Post subject:

No sales tax here in OR to begin with, and since I'm the only worker I don't think a labor tax would apply either? I don't know really.

Will look into that IRS thing.

Oh and about the economy. While it is a good sign I am starting my own business (or thinking about it), one of the main reasons I am is the lack of employment, at least in my area. Nobody is hiring Mad

_________________
1969 Aluminum V-Hull
1964 Evinrude Lightwin 3hp (Been in family since new)

1985 Gregor Octapon Pontoon Boat
1998 Yamaha C40

Under Construction: Motorized Sufboard
(Hopefully) 10hp Evinrude Powerplant

Wimperdink · Swabby Joined: 18 Dec 2005 Posts: 2328

Pay your quarterlies.... they catch up fast. Never do a payment plan on back taxes.... ugh Yes I've been there and done that. If you have nothing to loose, a DBA is the way to go.

Personally, I'd use word of mouth advertising and only accept cash at this point. Just me though.
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I make stuff up!