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Old 08-22-2012, 02:26 PM
32vld 32vld is offline
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$600 limit then 1099

My first commercial account this year. They told me that they can no longer pay me with a check made out to my personal name. Once the $600 threshold is reached they would have to 1099 me. Even if they were to pay me cash because they would be writing off my services as a business expense. Per their accountant.

So I opened a savings and checking accounts in my business name. I always had kept my business money in separate personal accounts from my family money.
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Old 08-22-2012, 03:29 PM
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grandview (2006) grandview (2006) is online now
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So you were skimming cash. If your in business and you didn't have a business account?
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Old 08-22-2012, 10:44 PM
XYZLawnPros XYZLawnPros is offline
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Tell the IRS politely "NO THANK YOU. I decline your offer.I am happy with the contract I had with you Previously."
Unless of course you like living with the barrel of a gun down your throat 24/7.
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Old 08-23-2012, 12:07 AM
32vld 32vld is offline
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Quote:
Originally Posted by grandview (2006) View Post
So you were skimming cash. If your in business and you didn't have a business account?
No.

I had an account in my name that I used only for my business. No co mingling with any other family income.

I'm a Sole Proprietorship. To me whether I have the check made out to my name or a business name does not matter.

Tax time my income still gets reported to IRS and the sales tax still goes to the state.

But I learned that it matters to the IRS. So now I have an account in my business' name. Actually two accounts savings and checking.

The reason I posted this is being I learned something new and there must be other people here that are unaware and will get their banking straightened out.
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Old 08-23-2012, 04:49 AM
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grandview (2006) grandview (2006) is online now
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More about your checking and saving account. You put the checks from your customers in the checking and do your taxes. Then your putting the left over in a saving account?
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Old 08-23-2012, 06:08 AM
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BPS## BPS## is offline
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The first of the year is approaching.


Get all your ducks in a row now and incorporate, going operational 1/1/13.
Sole Prop any thing is flirting with problems.
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Old 08-23-2012, 06:14 PM
32vld 32vld is offline
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Originally Posted by grandview (2006) View Post
More about your checking and saving account. You put the checks from your customers in the checking and do your taxes. Then your putting the left over in a saving account?
No and no.

And no more on this subject.
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Old 08-23-2012, 06:23 PM
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treysoucie treysoucie is offline
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Quote:
Originally Posted by XYZLawnPros View Post
Tell the IRS politely "NO THANK YOU. I decline your offer.I am happy with the contract I had with you Previously."
Unless of course you like living with the barrel of a gun down your throat 24/7.
This to the tenth degree... Dont give the federal government any money if you can help it.
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