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Do I really need to register my biz?

Discussion in 'Introduce Yourself to the Community' started by JeffNY, Nov 18, 2007.

  1. JeffNY

    JeffNY Senior Member
    Messages: 484

    Im going to get commercial auto, and general liability, but do I really need a LLC, or DBA? Don't you have to make more than $6k before you have to claim it? Im sure i'll stay below that.

    So what do you think?
     
  2. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    As for filing: This is copied directly from the IRS website:


    You must file a tax return if you had net earnings from self–employment of $400 or more. This is your total self-employment income less the expenses paid in operating your trade or business, multiplied by 92.35%. For more details, refer to Topic 554, Self–Employment Tax.


    If you are using your name as part of the business name, you LIKELY would not need to file a DBA.
     
  3. Snowpower

    Snowpower Senior Member
    Messages: 636

    You plan on making less than 6000 this year plowing and you have a 50,000 dollar truck?
     
  4. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,533

    If you do not organize your business, ie an LLC, LLP, CO etc etc.
    How are/is you or an attorney going to be able to separate your personal assets from your business assets in the event of a lawsuit,or bankruptcy?


    Disclaimer,this is just an exampel of the reasons and are not limited to these
     
  5. daveintoledo

    daveintoledo Senior Member
    from nw ohio
    Messages: 115

    yes,,,

    you do , with the state and maybe local gov.... thats how they keep tabs and make sure business are legal and paying there taxes......
     
  6. PlowOrDie

    PlowOrDie Senior Member
    from ohio
    Messages: 164

    http://tax.ohio.gov/divisions/communications/information_releases/st200302.stm

    this is ohio's law...

    also, there are many more advantages of forming a legit company then there are not...

    snofarmer is right also - your life could be changed if anything were ever to happen.. so its best to just be legit..
     
  7. JeffNY

    JeffNY Senior Member
    Messages: 484

    $35k, and I kind of just do it for fun. I don't NEED to plow snow.
     
  8. 02DURAMAX

    02DURAMAX PlowSite.com Addict
    Messages: 1,229

    Why would you plow snow for fun...its not work all the wear & Tear on the truck if you don't have to plow..
     
  9. streetsurfin'

    streetsurfin' Senior Member
    Messages: 770

    You should register so noone else takes your name down the road and sullies your reputation.
    If you operate out of your home by parking your truck, plow or other equipment there, or receiving mail there, I would bet your local government requires a business license to run the business out of your home. I believe you may need to register to get that.
    Registering a fictitious name is probably the most inexpensive and least troublesome part of doing business.
     
  10. JeffNY

    JeffNY Senior Member
    Messages: 484

    Your right, I should sell it. Why ruin a good truck eh?
     
  11. VBigFord20

    VBigFord20 Senior Member
    Messages: 686

    Huh? Does that mean if you do less then $5000 worth of plowing you are not classafied as a plow contractor?

    It would be nice if they wrote the damn laws in English.

    EDIT: I read that entire page in the link... damn Ohio law, Dig a hole, thats sales tax, plant a tree in that hole, thats not sales tax, wtf? Guess its time to call the accountant.
     
    Last edited: Nov 19, 2007
  12. KenP

    KenP Senior Member
    Messages: 197

    Keep it and buy a new truck for cash every three years and you'll still be about 50K +/- uppayup
     
  13. daveintoledo

    daveintoledo Senior Member
    from nw ohio
    Messages: 115

    what it means..

    according to the accountant, it 5000 for your business, once you make 5 grand, your a subject to sales toax, thats not just for the year, but as soon as your business makes 5grand, you have to collect sales tax on oll taxable services at the rate of teh county where said work was performed...
     
  14. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,533

    Hear in MN there is no sales tax on services only goods.
     
  15. PlowOrDie

    PlowOrDie Senior Member
    from ohio
    Messages: 164



    you got it...
     
  16. VBigFord20

    VBigFord20 Senior Member
    Messages: 686

    Well since 3 of the 4 buildings I am going to plow are mine, I will make less then 5k so I guess I am ok.
     
  17. IMAGE

    IMAGE Sponsor
    Messages: 1,741

    ummm.... no.

    Snow Plowing is not taxable in MN, but alot of other services are taxable here in MN.

    Is lawn mowing a service? Yes. Is it taxable? Yes.

    There is a list here:

    http://taxes.state.mn.us/taxes/sales/publications/fact_sheets_by_name/content/BAT_1100109.pdf

    More lists for other industry's in MN here: http://taxes.state.mn.us/taxes/sales/publications/fact_sheets_by_name/sales_fact_sheet_by_name.shtml

    :waving:
     
  18. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,533

    Your link did not work?
    Now they do for me if I click on them in my replay above lol.
    There is no tax on snow plowing and all we are worried about is snow shoveling or snow plowing
    But thanks for the heads up.
    .
    Nontaxable services include:
    • landscaping (see Landscaping on page three)
    • installing sod
    • planting trees, bushes, or other types of plants
    • planting flower or vegetable plants
    • cleaning or maintenance of an outdoor pond
    • snow shoveling or snow plowing applying ice-melt or sand to driveways, sidewalks, or parking lots
    • services by a person who is not in the business of pro-viding these services. Being “in the business” includes but is not limited to soliciting sales, advertising, and en-tering into written contracts to provide services. For ex-ample: A person mows the grass for a next door neighbor for pay. Unless the person is employed by a business to perform this service or has established his or her own business, the charge is not taxable.
     
    Last edited: Nov 20, 2007
  19. 6feetdeep

    6feetdeep Senior Member
    Messages: 141

    You must be out to plow just for fun. If you go out and get comm. auto and liability insurance, then add in fuel costs, you wont have much left making less than $6k for the season. I could think of plenty of other things to blow money on besides getting up at the crack of dawn to clear someone elses' driveway/ parking lot, just for fun:dizzy:
     
  20. IMAGE

    IMAGE Sponsor
    Messages: 1,741

    Yeah I just wanted to make sure people didnt think ALL services were not taxed here.