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business account or personal

Discussion in 'Business Operations' started by jay albers, Feb 16, 2013.

  1. jay albers

    jay albers LawnSite Member
    Messages: 178

    little history first, i was running just the lawn business for about 4 years in which i had a business account with the business name.

    last year i got a full time job but still do the business on the side.

    i made less in the lawn biz but more over all.

    i'm wondering if i should have my customers just write there checks in my name and put it in my personal account instead of the biz name.

    I was wondering for tax reasons,
  2. knox gsl

    knox gsl LawnSite Fanatic
    Messages: 6,164

    Won't make a difference on taxes unless you're trying to avoid paying them.
    Posted via Mobile Device
  3. 93Chevy

    93Chevy LawnSite Fanatic
    Messages: 40,245

    You still have to pay taxes, so why wouldn't you keep a separate account? What is the big negative consequence, in your opinion, that makes you want to close your business account?

    It's going to be much more work separating everything, because you can't just accept income and not pay taxes and you'll have to do twice as much work when you pay any business bills
  4. jay albers

    jay albers LawnSite Member
    Messages: 178

    was hoping i wouldn't have to spell out my goals cocerning the goverment.

    i'll talk to my cpa.
  5. knox gsl

    knox gsl LawnSite Fanatic
    Messages: 6,164

    So are you wanting to take money in under the table and cash checks into your personal account? I guess at that rate you could drop business insurance and not be licensed through the state as well. It looks like you want professionals to condone you being a scrub to our industry.
  6. 93Chevy

    93Chevy LawnSite Fanatic
    Messages: 40,245

    Your CPA can only give you so much advice...talk to an attorney; they have attorney-client privelage. CPAs don't have that. Which means they can report you if they find out that you're hiding income under the table.

    Just a word of advice...if you want to avoid paying your taxes on business revenue, don't talk about it on a public forum.
  7. 205mx

    205mx LawnSite Silver Member
    Messages: 2,392

    I guess just take cash only. Use it for groceries and fuel and what not. I mean, in accept cash but I always report it. Only discount I give is $.50 cents for postage :)
    Posted via Mobile Device
  8. ringahding

    ringahding LawnSite Senior Member
    Messages: 611

    If this is not what you're going to do be doing for a living, you still need to claim all sales. I will save you the trouble of HITTING up a CPA (because my wife is not only my accountant, but many other small businesses).

    She runs into this all the time, where guys are trying to cut corners. I am the worst person to give advice so here is my best suggestion---->>>>Everything you do in life & business BE HONEST and Karma won't come back and bite you in the xxx

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