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matt3092
07-15-2011, 08:29 PM
Me and my buddy just started mowing this year. We want to get a business checking account so its easier to keep track of our money but we are not registered as a business. Do you have to be registered to get a business account? I appreciate any info.

vencops
07-15-2011, 08:38 PM
You do in my state.

IRRITECH
07-15-2011, 08:46 PM
You used to be able to go online and register a business and get a Fed ID #. Cost nothing and is quick (if I remember right). Yep, I'm not brain dead yet.

http://www.irs.gov/businesses/small/article/0,,id=102767,00.html

matt3092
07-15-2011, 09:21 PM
but if we go online and register a business and get a Fed ID # does that mean we will have to pay taxes?

IRRITECH
07-15-2011, 09:30 PM
Go talk to the bank, I believe you can open a business account with your SSN. However, that is your credit on the hook at that point.

nepatsfan
07-15-2011, 09:40 PM
but if we go online and register a business and get a Fed ID # does that mean we will have to pay taxes?

yeah...you dont want to do that....what a waste of money:hammerhead::hammerhead::hammerhead::hammerhead:

lnplawncare
07-15-2011, 10:06 PM
Just open a free personal checking account and get him a card to access the account as well. That way you both have cards to put gas in your trucks and mowers and other expenses, and you can just withdrawl money and split it to pay yourselves. Just DO NOT wire money to your other personal checking accounts, it is better to withdrawl and then deposit cash. Also, try to keep the account from ever having more than 10,000 in it. Also, try to not do commercial properties as the owner of the property is going to report your service as a business expense when he does his taxes and you may get a letter from the IRS. I did it when I first started out at first they acted like I was doing something illegal but I told them that me and my buddy drag race and we just wanted to start a little "fund" in case we need to buy new parts for our car and to pay for gas and what not and they bought it. Ive never seen a drag race in person yet alone driven a drag racing car and it worked...

Agreen-go
07-15-2011, 10:22 PM
but if we go online and register a business and get a Fed ID # does that mean we will have to pay taxes?

What makes you think you don't need to pay taxes in the first place?

MowHouston
07-16-2011, 11:44 AM
but if we go online and register a business and get a Fed ID # does that mean we will have to pay taxes?

You are self-employed and required to pay taxes anyhow. It doesn't matter if you have a personal account or business account.

Before you get into this any further, you should visit IRS.GOV and read up on what your responsibilities will be.

If you don't understand your full expenses, which include your taxes, you are going to have a rude awakening in the future.

Good luck.

Patriot Services
07-16-2011, 03:28 PM
By the sound of it I will venture to say your not even 18 yet? If not you will need a parent to open an account for you. Secondly you can't put a business name on personal checking account. At least in Florida they will check you are a registered business prior to allowing you to open a business account.
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SouthSide Cutter
07-16-2011, 09:11 PM
The Bank has you get a Fed # and register at Court House then you can set up business account. This is for IN. Around here all cks to you , you can cash. Any check to business you have to deposit in a business account then draw it out. Alot of places only right checks to a business now around here so you have to have a business account.

MarkintheGarden
07-16-2011, 09:17 PM
Me and my buddy just started mowing this year. We want to get a business checking account so its easier to keep track of our money but we are not registered as a business. Do you have to be registered to get a business account? I appreciate any info.

Let me get this straight, you want a business account but you don't want to own a business. You want to make money, but not pay taxes, I guess you are also going to want to charge the customers but not mow their lawns.

cpllawncare
07-17-2011, 05:32 PM
I have a Business account that is a DBA Account. My Business is a Sole Proprietorship so you can try to set it up that way, if your state will let you. Just do some research and find out.Doesn't have anything to do with taxes at least not here.