Shhhh wrote:

[..]
- quote -

As Tad Borek replied, the "fictitious business name" statement usually
requires publication for a period of time in a newpaper of record, and I
think is handled at the county level (at least here in Calif.) The main
purpose is make sure you don't try to commit fraud while hiding under an
anonymous name. You do not actually have to operate a business to make
this filing, just be thinking about it.

Getting a business license at the city or state level is a separate
matter, and can require payment of a revenue-based license fee or tax.

Back to the OP: as a sole proprietor, you and your business are one and
the same for all legal and tax purposes. If you keep separate business
bank accounts, and you should, it is simply like keeping your money in
different pockets, it's still all yours, but you can keep track of it
better.

Whether or not any of your clients issue you a 1099-MISC at the end of
the year is not your problem (unless they falsely report a larger amount
than they paid you, or use the wrong box on the form). You are
obligated to report for tax purposes all income you receive whether
reported to you on a 1099-MISC or not. Whether they use your SSN or
your EIN (which is tied directly back to your SSN) on the form is also
irrelevant.

-Mark Bole

Shhhh wrote:
- quote -


I'm not familiar w/IL, but it seems that might just be a tax-related
form. Find out from someone what it takes to have a valid "DBA" - doing
business as - name for a sole proprietorship. Here in SF you file with
the county and publish a notice in the newspaper for four weeks. Taxes
are a separate issue - you get a tax certificate from a separate authority.

Point being it's unclear whether that tax form is also a DBA filing or
whether it's just a form for tax-oversight purposes. I wouldn't be
surprised if you have another step to do. You could check off
"Corporation" on that form but of course, that's not the form for
creating a corporation.

Definitely open a separate account for your business -- go do it right
now! Here in SF you need a copy of your DBA filing, otherwise you can
only open an account in your name (which may be fine - it's cheaper at a
lot of banks, most charge for business checking but not personal
checking. The down-side is your checks will read your name, not a
business name).

The 1099 income becomes relevant at tax-prep time. In the tax software
I've used, you enter all 1099-MISC income separately, and associate each
1099 with a Schedule C (Schedule C is the one you'll use to figure your
sole-pro income). Make sure that you don't double-report those revenues,
when you report your sales on Schedule C. If you're tracking total sales
and they're $40,000, and $17,000 of that was reported on 1099, you
didn't have $57,000 in income...it's $23k, with $17k flowing over from
those 1099s. This is mostly a tax-software issue really and it's very
easy to avoid with Quickbooks, as long as you have QB set up right...it
just spits out a report at year end showing all the things you enter on
Schedule C. If you don't have QB specially set up for your biz (chart of
accounts, items, etc), it's worth figuring that out or paying someone to
do it.

-Tad

I agree. You should open a different bank account with the name of the
business (or your personal name as for a sole proprietorship it makes
no difference). So if you do not have an official business name with a
federal ID number, I am almost certain you can just open a different
personal checking account (I'd open one at a different bank from your
personal checking account). Keep all tte business money in the seperate
account and pay all business expenses through the account. I feel this
is even more important tha using quick books as this would really keep
your expenses seperate and you could easily track business expenses
come tax time. Although quick books is great to use if you have a lot
od expenses but either keep the business account seperate.

I am a young accountant. If anyone with more experience has any
comments with what I wrote above, please email me directly
amallin[at]gmail.com as I am looking to develop my knowledge base so that
I can start my own practice on the side one day.

Aaron Mallin


BB123 wrote:
- quote -

- quote -

Thatn's for your reply... Yes I filed this form in the name of my company
using this form... http://www.revenue.state.il.us/taxforms/Reg/REG1.PDF

is there any other forms I need for sole proprietorship? I don't believe so.


Thanks for your thoughts/and suggestions and please keep 'em comming.
Shhhh

In article <pq-dnca55YJdr6HYnZ2dnUVZ_vKdnZ2d[at]comcast.com> ,
"BB123" <123[at]456.com> wrote:

- quote -

No problem since you and your business are one and the same. You
do, however, have the option of asking your customer to issue you
a corrected 1099. In fact, you should do a good job up front
explaining to the customer how and when to pay you. For example,
when you generate an invoice, clearly state who to write the
check out to, and where to send it.

- quote -

This is called commingling, and it is a really bad idea. If the
business gets audited, the audit might stop at the business if
everything is in order. But if you commingle, the audit will
certainly dive into your personal life.

It is very easy to get a business checking account. Just go to
your local bank, and bring a copy of your assumed name filing
(unless your business name includes your entire full name).
You did legally register & publish that business name, didn't
you?

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

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