Landscape Business Taxes & Licenses

Plant: Flowering Quince

Term: Self-employment Taxes

Flowering Quince, Chaenomeles speciosa • Plant type: Shrub • USDA Hardiness Zones: 4b to 8a • Height & Spread : 6 to 10’ • Exposure: partial shade to full sun • Bloom Color: Pink, Red, White • Bloom Time: Late winter, Early spring • Growth Rate: average • Landscape Uses: Border, Espalier, Hedge,

Massing, Woodland garden

Self-Employment Taxes• People who are self-employed do not have

Medicare Taxes, or Social Security Taxes with-held from their paychecks.

• They still are responsible for paying these taxes to the IRS (Federal Government)

• The self-employment tax rate is 15.3%. The rate consists of two parts: – 12.4% for social security (old-age, survivors, and

disability insurance)– 2.9% for Medicare (hospital insurance)

• You must pay self-employment taxes to the IRS if your income is $400 or more

Self-employment Taxes• Estimated Taxes• Federal income tax is a pay-as-you-go tax. You

must pay the tax as you earn or receive income during the year.

• You generally have to make estimated tax payments if you expect to owe tax, including SE tax, of $1,000 or more when you file your return.

• Taxes can be paid on-line and must be paid quarterly: Apr 15, June 15, Sep 15, Jan 15.

• The IRS can asses penalties and interest if you do not file on time

Local Taxes• Fauquier County asses two taxes on small

businesses:– Personal Property Tax

• You must keep a list of equipment on file with the treasurer’s office

• You are taxed on the value of the equipment• Pay every June & December• Includes tools, vehicles, facilities, & furniture

– Business License Fee• Based on your previous years income• No tax on businesses earning less than $25,000• Due in March

Business license

• Fauquier County requires all individuals or companies engaged in business here to obtain a license.

• Businesses must apply for a license within 30 days of business start up.

• Business licenses run from Jul 1 to Jun 30• Must reapply every year

Failure to pay taxes

• Failure to pay taxes is a crime called “Tax Evasion”

• If you start a lawn or landscape company on your own, you need to take taxes seriously

• Penalties can be severe• Get help from the county or the small

business administration if you plan to be more than a kid with a push mower