I know there are alot of people in every area who sell firewood for cash, and don`t have a legal business. I sell a few cords a year doing this. I am landscaper in the summer and am looking to sell wood for extra income in the off season, but I want to be a real business. I was wondering if you could help me with all the basic information of setting up business tax numbers, ins. , etc. I am lost in that aspect and in need of information. Thankyou
Firewood Business
- Thread starter Ianm
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cabinman
ArboristSite Guru
Landscaper huh,,..... you probably got a skidsteer,and a clam bucket,......... CHEATER,.............LOLOLOL, good luck,.
No, my boss has all that stuff, but where my wood is, isn't anywhere near his shop. He has a ton of sweet stuff that would be helpful to me but there is a distance between where my wood is and where he is located. Although I am allowed to borrow the F 550 and Chevy 3500 dump trucks when needed / and have in the past, but ends up costing me too much in fuel.
JackD_ME
ArboristSite Operative
Unless you have all the equipment (sounds like you don't) You'll need LOTS of money to buy it.
Then you'll need "working capitol" to keep things going while you are building your business up. A good business plan is a must if you hope to succeed.
Firewood is a "retail" business, you are selling a product so are you a salesman?
Go to your town office/city hall and start there but remember, you'll be sending 30% +/- of your hard earned $$$ to the State and Feds.
The other thing to remember is the work you do today won't be paid for until NEXT year!
Then you'll need "working capitol" to keep things going while you are building your business up. A good business plan is a must if you hope to succeed.
Firewood is a "retail" business, you are selling a product so are you a salesman?
Go to your town office/city hall and start there but remember, you'll be sending 30% +/- of your hard earned $$$ to the State and Feds.
The other thing to remember is the work you do today won't be paid for until NEXT year!
Blazin
Addicted to ArboristSite
Keep your daytime job, and sell some wood part time on the side for extra greeeeeeeeeeen-cash money-no checks-no paper trails... The glory of a magnetic sign on the door of your truck isn't always what is cracked up to be. 
Rftreeman
Addicted to ArboristSite
Ianm.........just sell the wood and pocket the money, unless you buy a fire wood processor and make a ton of money after it's paid for then to heck with all that real business stuff.
what's wrong with magnetic signs?The glory of a magnetic sign on the door of your truck isn't always what is cracked up to be.
Over here the states IRS sent me a form and I am registered as a retail merchant and collect sales tax. I fill out a few extra forms for my business and report the profit on my 1040's. Somebody that does taxes probably can help you out or if you call the IRS they would set you up. Its a matter of keeping records and doing the paperwork more then anything for me. By the time I figure expenses ,there isn't a lot to pay taxes on. Its more part of a way of existing then a profitable bussiness for me.
Human services over here assist people with heating cost. I am also a registered vendor with them which gives me a fair chunk of added sales to those who burn wood.
Human services over here assist people with heating cost. I am also a registered vendor with them which gives me a fair chunk of added sales to those who burn wood.
STLfirewood
Addicted to ArboristSite
There is not tax for labor here in Missouri. So give the wood away but charge labor to deliver it. Don't allow pick-ups and you don't have to worry about collecting taxes. You can go to your state ofice and register your business. They can give you then info on setting up a tax id number also.
Scott
Scott
Blazin
Addicted to ArboristSite
If you are not going to incorporate, you need to go to your county office and fill out a DBA (doing business as) and you will also need a "certificate of authority" to collect sales tax. I can't remember if you can do both at the county. With the sales tax certificate, you will be required to file a form quarterly whether you have collected any sales tax or not. Forgetting to file or filing late costs $50. If you are only going to do only a couple cords a year, it might not be worth the hassle.
ciscoguy01
Addicted to ArboristSite
+1
The best thing you can do if your going to start selling alot of it, is get a good saw. Sell your wood for around $5 a f/c less than everyone else. When you sell it take $X amount and put it in a kitty, like a payment for other equipment, the other should go toward what you spent on your equipment. You won't find alot of extra that you can spend foolishly for a while, but it's all part of the building process and getting a customer base. Once all this is done you'll start to see some profit and you can go from there. In NY there's definitely enough people that want firewood. If you sell to people in the city they pay alot more for it than the poor country folks in surrounding areas... The biggest and most important thing you can remember is DON'T GO DOWN ON YOUR PRICE!!!!! People will take advantage of you whenever they can you'll suffer the loss... I've prolly turned away 10 people this year with stuff like this. Hung up on a couple and told them to find wood elsewhere even when they came to my price level. It's okay, someone else will be willing to buy what they were complaining about. Remember also that $ for $ wood is the cheapest heat there is, remind the customer of that. Heck, I've even told them to call the oil company and give them their money, it's gonna cost'em alot more for #2 than for a full cord of locust... Good luck on your biz bro. I've had some people call me from downstate, not sure where your located but if you tell me I might be able to give you some numbers of people looking...
eh?
Keep your daytime job, and sell some wood part time on the side for extra greeeeeeeeeeen-cash money-no checks-no paper trails... The glory of a magnetic sign on the door of your truck isn't always what is cracked up to be.
The best thing you can do if your going to start selling alot of it, is get a good saw. Sell your wood for around $5 a f/c less than everyone else. When you sell it take $X amount and put it in a kitty, like a payment for other equipment, the other should go toward what you spent on your equipment. You won't find alot of extra that you can spend foolishly for a while, but it's all part of the building process and getting a customer base. Once all this is done you'll start to see some profit and you can go from there. In NY there's definitely enough people that want firewood. If you sell to people in the city they pay alot more for it than the poor country folks in surrounding areas... The biggest and most important thing you can remember is DON'T GO DOWN ON YOUR PRICE!!!!! People will take advantage of you whenever they can you'll suffer the loss... I've prolly turned away 10 people this year with stuff like this. Hung up on a couple and told them to find wood elsewhere even when they came to my price level. It's okay, someone else will be willing to buy what they were complaining about. Remember also that $ for $ wood is the cheapest heat there is, remind the customer of that. Heck, I've even told them to call the oil company and give them their money, it's gonna cost'em alot more for #2 than for a full cord of locust... Good luck on your biz bro. I've had some people call me from downstate, not sure where your located but if you tell me I might be able to give you some numbers of people looking...
eh?I am from washington county thanks for the tips. I currently sell face cords with my 1/2 ton pickup and borrow my boss`s 1 ton dump to deliver full cords, but im looking to pick up my own 1 ton cause its to much in fuel to borrow his truck bring it to my woodlot deliver the wood then bring it back to him he lives about 20 miles from me
blunt
ArboristSite Operative
I cant offer any advice but would just say good luck and go for it. I was tempted to do what your thinking ... there is a thread floating around somewhere I started asking similair info. I decided to stay working for the man ... but its summer here in NZ and come winter the firewood bug will be all consuming again.
Hugenpoet
Addicted to ArboristSite
When you say you are a landscaper in the summer, presumably that is working for someone else, otherwise you would theoretically have the framework of the Corporation/LLC/Sole Propietorship, etc. already established which could simple carry on the two activities under the banner of one enterprise.
Before you go out and create a situation that results in increased paperwork and expense, talk to someone you know who has experience with operating a business-maybe your accountant, or just a friend who owns a business to find out if you really want or need a formal corporate structure to accomplish what you are trying to do.
Everyone who is working legally has a tax ID number, for individuals it is your Social Security # for Corps/LLCs it is an FID number. There is nothing to stop you from setting up an unincorporated firewood business and keep records of income and expenses and be perfectly legal from a tax standpoint, just fill out the Schedule for your tax return and file same with your 1040. This would eliminate the expense of forming a corporation and the annual expense of filling an annual report with the Secretary of State of your State of incorporation/organization-often requiring a fee of $450 to $500 per year as well as the requirement to file separate federal and state income tax returns for you new entity. You could still secure hazard and liability insurance-either as an umbrella policy on your homeowners or as a separate policy to protect yourself from lawsuit and to insure the value of your equipment. If you found that the business developed into a true going concern with the requirement for additional employees and equipment as well as the increase in potential liability, then might be the time to consider the next step.
Just my 2 cents.
Hugenpoet
Before you go out and create a situation that results in increased paperwork and expense, talk to someone you know who has experience with operating a business-maybe your accountant, or just a friend who owns a business to find out if you really want or need a formal corporate structure to accomplish what you are trying to do.
Everyone who is working legally has a tax ID number, for individuals it is your Social Security # for Corps/LLCs it is an FID number. There is nothing to stop you from setting up an unincorporated firewood business and keep records of income and expenses and be perfectly legal from a tax standpoint, just fill out the Schedule for your tax return and file same with your 1040. This would eliminate the expense of forming a corporation and the annual expense of filling an annual report with the Secretary of State of your State of incorporation/organization-often requiring a fee of $450 to $500 per year as well as the requirement to file separate federal and state income tax returns for you new entity. You could still secure hazard and liability insurance-either as an umbrella policy on your homeowners or as a separate policy to protect yourself from lawsuit and to insure the value of your equipment. If you found that the business developed into a true going concern with the requirement for additional employees and equipment as well as the increase in potential liability, then might be the time to consider the next step.
Just my 2 cents.
Hugenpoet
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