Legality

[dwilcox]

Can anyone help me out with what all I need to get done on the legality side of a business like this. First off I'm only starting off with residential mowing, as a part time seasonal thing. What do I need to get as far as licenses and things like that. Step by step, what did you have to get? Business license, tax number ect... I know lots of kids who mow peoples yard & get paid decently for it, is that illegal? When your mowing other peoples yards for money, when does it switch over to a business? The only differance between this year and last is I will have a truck and a trailer full of equipment and more people I will be mowing for. Anyway, what do I need to get if it were to be a real business.

[Woody]

Dwilcox:

Yes, if you make money doing ANYTHING and fail to pay taxes on it, it is illegal. Keep yourself out of hot water, and follow the rules, and you will benefit from it greatly. My first suggestion is to swing by....

Ohio 1 Stop business Center

You don't state your age. You may need to put the business in someone else's name if you are under 18 years old, but since I am not a lawyer, I can't give you any legal advice. Also, it is good to seek out an accountant to help you along the way as well. See if your parents or relatives know someone who will help you out in these areas in exchange for having their lawn mowed, etc.

What part of Ohio are you in?

Woody

[dwilcox]

Taxes

I'm just north of Columbus, and I'm 21. I've worked for the Scotts company for several years doing everything from call center customer service and training, to actual groundskeep at the Scotts International building. So do I need to get any licenses.. like a venders service license? If I wasn't technically a business, just someone who would mow your yard, would I just have to keep receipts and records, then report those earings when I did my taxes?

[Woody]

If you perform a service for compensation, you ARE a business. No way around that. In Ohio, you are REQUIRED to have a Service Vendor's License if you are going to mow lawns for money. If your sales exceed $5,000 in a one year period, you are REQUIRED to collect sales tax for the state.

Now, let's get something straight here. You are REQUIRED BY LAW to report ALL INCOME for INCOME TAX purposes. PERIOD. Not doing so will FOR SURE catch up to you one day. And when it does, you WILL pay a fine for it, AND pay the owed back taxes. Not to mention, you can end up IN JAIL. NEVER F'CK WITH THE IRS! IF YOU DO AND GET CAUGHT, YOUR LIFE WILL BECOME A LIVING NIGHTMARE BEYOND YOUR COMPREHENSION! Should you think I am kidding, I have a friend that was on the verge of spending 5 YEARS IN PRISON, only because he had the authority to WRITE A CHECK for a company! The owner of the company was the one who screwed up, not my friend. Anyhow, he had to do like 8 interviews with IRS agents, and they interrogated him for hours about the goings on at the company. Eventually, the company owner took full responsibility, had to sell EVERYTHING HE OWNED, including his house, and was made to pay full restitution AND FINES. Nothing like spending 10 years of your life working to pay back the IRS.

You are not required to keep reciepts at all, but if you don't, you will have to pay taxes on pretty much ALL of your income. Keeping reciepts is in YOUR best interest, as it allows you to write off some of the income, and thus, not pay taxes on that portion.

What you need to do is go to the website I listed, figure out the TYPE of business you want (Sole Proprietor, LLC, Corporation, etc.), fill in the info, then download the "kit". It it will have every form you need. As a sole proprietor, you can use your social security number as your "tax id", but you would be better off actually getting a federal id. my business is an LLC, which basically gives me personal asset protection, with simplicity in tax reporting. Here in Ohio, if you form either a corporation or a LLC, your business name is automatically registered with the state. For a sole proprietor, you will need to register your "fictitious" name, or DBA (doing business as) name.

You should really consult with an accountant on this. I personally have one myself, and he is a good friend of mine. I trade work for his services, which is a good deal for both of us.

Woody

[mcmav101]

Any idea where to go for some info like that in Indiana.

[Woody]

Mcmav101:

Try doing a search for the Secretary of State's office in Indiana. Nevermind, I did it for you.

Indiana Secretary of State's Website

It doesn't look like it is as complete as the Ohio S.O.S.'s link I gave before. Try giving the Indiana S.O.S a call and see if they can give you some idea.

Woody

[Ground Works]

Ohio

If u are in ohio go to that 1 stop place that woody posted and u just input your business and it will set u up with all the forms and stuff u need it is a great resource

Lin