Читать книгу Start & Run a Landscaping Business - Joel LaRusic - Страница 13

To legally operate a business, you must take care of the obligatory bureaucratic red tape. Consult with municipal and state or provincial authorities to make sure you have all the necessary licenses and permits. Here are some of the considerations that generally apply:

• Business license. You will have to register and pay an annual fee for a business license. You may also need a special permit to run your business from your house.

• Fictitious business name registration. Most jurisdictions require that you register a “fictitious” business name (that is, a company name that does not include your surname or the names of your partners).

• Vehicle permit. Check to see if you must have special commercial vehicle permits in your area.

• Contractor’s license. In the United States, you may need to have a separate license if you decide to expand beyond general maintenance (lawn care and gardening) into landscaping. This is not the kind of license that requires you fill out a form and hand over some cash. Instead, it involves a test that generally requires you to show that you have worked in the field for a number of years. (This is not a requirement in Canada.)

• State/provincial tax registration. In the United States, tax laws vary from state to state and even within a state. Check with the tax department or an accountant. In Canada, you will likely not have to register for provincial tax unless you become a reseller of goods. Services are not taxed at the provincial level.

• Federal tax registration. In the United States, as a sole proprietor you probably don’t need to register federally (unless you have employees). If you do have employees, you may need an Employer Identification Number (EIN). Check the IRS website, www.irs.gov, for more information. In Canada, most businesses must register for the GST. Contact your local tax office for all the instructions.

• Employee taxation. If you have employees, you will be responsible for withholding and remitting applicable deductions. Once you hire employees, you definitely should get professional advice to be sure you are complying with all existing regulations. The penalties for non-compliance can be severe, and ignorance is no excuse.

• Workers’ compensation. If you have employees, you must register with workers’ compensation in your area and pay a percentage of wages to cover employees if they are hurt on the job. If you have no employees and are running a sole proprietorship, you usually can choose whether or not you want workers’ compensation. You may want to compare workers’ compensation rates with those of private insurance companies, which provide coverage 24 hours a day, not just on the job. This is the kind of coverage you need if you are self-employed and your business relies on you.