Small Business Insurance/Tax Q's

[Bobby D]

I would like to purchase small business insurance. I primarily mow, but do quite a bit of hedge trimming (no trees), mulching, etc. I dont have any employees....yet. Any tips on how much this will costs and how much insurance I should get.

On to everyone's favorite. Taxes!! If I just run this as a part time business, do I need to file separately or can I just include it with my normal taxes. Any special attachments?

Any tips or help would be greatly appreciated.

[rkbrown]

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As far as the taxes, you will file a schedule C for the business.

[Bobby D]

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Do I really need to get any special licenses in order to operate, or file with the county and get a tax ID number? Even though it is a part time small business.

[Phil Nilsson]

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http://www.lawnservicing.com/forum/topic.asp?TOPIC_ID=877

[rkbrown]

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Bobby:

As to whether or not you need a business license, that depends on your local government. In my area we do not need a general business license, but I am branching into applications and irrigation, which both need licenses. As far as getting the Tax ID number, although not absolutely necessary, I think it is a good idea. Why ? First of all, it is necessary in order to get a commercial checking account with the business name on the account. A separate account will help in keeping your records straight. Also, its more professional. Having customers write checks to Taybritt Lawn and Landscaping is more professional that to Rob Brown. Also, as you grow, as Phil has mentioned before, you may want to add the convenience of offering credit card payment. As a commercial customer at a bank, they are able to help you set this up. These things help differentiate you from "Joe the Part Time Mower Guy" who shows up when he's sober, insists on cash payment since he doesn't report it, and has the old Craftsman that breeaks down every other day. Just my $.02