Sole Proprietorship... 1099

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 recieve a 10-99 from customers I know how much I've recieved. 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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Reply to
Shhhh
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They will send the 1099 with the information that you supply them with on the W-9. N Owen To reply, please change "ONE" to numeral

Reply to
N Owen

There would be no consequence since your social security number would be on the 1099 regardless of how it is styled. You should open a bank account for the business. You will need to setup a DBA and file it locally to open an account in the name of the business.

Reply to
Mike Wellman

If your business name is not your real name you need to file an "assumed name certificate" at your county (usually). Then open a checking account in "your name" D/B/A"assumed name". Since both your business and your use the same SS# it make no difference how you get the 1099s or even if you do or don't get them. Makes no difference if you deposity d\checks payable to you in your business account, etther. MF

Reply to
ed

You are NOT an employee of your own sole proprietorship -- you are (potentially) an EMPLOYER. Armed with this information here a couple of questions for you all.

Not really an issue, except for bookkeeping.

Actually, you SHOULD have a separate account for your business activities. Makes it easier to track income and expenses of your business. Moderator: Comingling of funds is outright stupid and brings a smile to face of the most vicious auditors because they know they are going to get to "clean your clock"!

Reply to
Herb Smith

You will be filing schedule C and if you make a profit of at least $434 you will also file schedule SE to calculate and pay estimated tax. Did you take out a separate EIN for your business? While not required, ever since 911 many banks will not let you open a business account without the EIN. Any 1099s you receive either in your own SSN, which goes on top of Schedule C, or for the EIN if any, and that EIN goes in the EIN box of Schedule C, are just part of income. The

1099 is just an information reporting form, and unless they withheld tax, you do not even attach to your tax return. If you are in business, one way to help prove this is intended to be a real profit-making business is to act business-like, including keeping good books and records, and having separate business accounts. __ Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
Reply to
Arthur Kamlet

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As far as a separate checking account for the business, this is always recommended. It helps to segregate personal and business items in case of audit, and helps you view the business AS separate, even though in your case, proprietorship, there is no legal difference. However banks are wont to want to charge for a business checking account, seeing all kinds of fees in their eyes. So if you can get a personal and esp a free, personal checking account in your name only, that will suffice. Every penny counts. ChEAr$, Harlan Lunsford, EA n LA

Reply to
Harlan Lunsford

This is excellent advice, I actually intend to use washington mutual to house my business account, as they have several no fee business accounts. Thanks, Shhhh

Reply to
Shhhh

Thank you all for your superb advice, looks like I was on the right track, but it's comforting to know there's no real problem with me accepting 1 over the other. Getting that account is now tops on my list! Thank you all, Shhhh

Reply to
Shhhh

In my case my bank gives me a personal account for my business, in addition to my regular personal account. Their charges for business accounts are higher, but there is no cost for either of mine. Stu

Reply to
Stuart A. Bronstein

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