Sole Proprietorship... 1099

Oct 23, 2006 2 Replies
B

Hello all,



I recently started a sole proprietorship and advertise (mostly posters, some professional journals etc.) with my companies name. We're basically a hired gun that does business services for other companies. I am the only employee (my wife sometimes pitches in). Armed with this information here a couple of questions for you all.



I have been keeping track of all my income via quickbooks so even if I do not receive a 10-99 from customers I know how much I've received. What would be the consequences of someone sending me a 10-99 in my actual name instead of the companies name? Since it is a sole proprietorship would there be an issue at all?



So far I've simply been using my personal bank account for both personal and business use. Since I am only a sole proprietorship can I open a business checking account, to make my life easier? or would I need to form my business a different way in order to accomplish this?


Thank you all, BB123


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T

Sure, home a business account for your sole proprietorship. On a W9 the first line of the form says NAME AS IT IS ON TAX RETURN (or similar wording). The second line is your dba name. All of your 1099s should be in your name. The business will contribute net income (revenue less related business expenses) to you personal tax return.

You should work with your accountant to make sure you set up your bus> Hello all,

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"BB123" wrote

Nope, no issue at all, as the 1099 reports that ~you~ received a certain dollar amount. And wow, ~you~ reported that amount (and other amounts) on your Schedule C.

You can, and probably should open a separate business bank account. Typically called "d/b/a accounts", talk to your banker about it. And then make all business deposits to that account, and write all ~business~ checks form that account. Transfer amounts to your personal bank account for your personal expenses.

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