Business License

[aperfectlawn]

I have just started my lawn service thissummer and don't have very much business. Next year I will get more business because my wife knows every realtor in town and they said if they need anything thay will call me. As well as my advertising and appartment proposals. I already know to get insurance, so I will get that in the spring. I was wanting to know if I should get a business license or wait until I have a lot of accounts. I will be part time for a couple of years. Someone told me you don't have to pay taxes on labor. And they said mowing is labor. Is this true? Does anyone know about Arkansas laws?

[justmjc]

Im not totally sure about your states laws, but I do know providing a weekly lawn maintenance does not require a license. Also, you will pay taxes on the amount of money your company makes, minus expenses including labor. Since you are only providing a service, you would charge no taxes on your services. You would however, if you got more into landscaping and charging based upon a product. Workers Comp is a cost which is usually paid based upon how much an employee makes. The more you pay them, the more you have to pay into workers comp. They work off a percentage. Talk to your cpa or insurance agent about how w/c works. They should help you out much better than I can through the message board.

[SCW]

Check your state laws on sales tax. In Texas, we have to charge sales tax on everything we do...even though the mowing is a service - it's one of those "exceptions" written into law.

[lawnchick]

sales taxes in NJ

I know that we DO have to charge sales tax on mowing services in NJ.

[mikeslawnservice]

Pennsylvania: No sales tax on services.