Shhhh wrote:

- quote -

Sounds complicated but it isn't. as a proprietor, there is
legally no difference between you and your business. Of
course we advocate keeping business and personal funds and
affairs separate of course.

So withdraw what you wish from your business account and do
with it what you will, even investing in the market. The
brokerage house will open the account in your name anyway
versus the company name. Results will be reported on
schedule d with your 1040.

ChEAr$,
Harlan Lunsford, EA n LA

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Shhhh wrote:

- quote -

[...]
- quote -

As a sole proprietor, no. You would open it in your own
name. Your company is not a legal entity separate from you.

IRS definition: "Draw account"
"If you are a sole proprietor or partner in a partnership,
the money or other forms of payment you take from your
business should be accounted for in a draw account. This
helps you know what amount of benefits you have taken from
the business during the year. You cannot deduct the sole
proprietor's own salary or any personal withdrawals made
from the business."

- quote -

As a sole proprietor, the "companies" [sic] money is your
money. Your capital gains or losses from investing are
reported on Schedule D.

-Mark Bole

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Shhhh" <123[at]456.com> wrote:

- quote -

Excellent idea.

- quote -

Good thinking.

- quote -

No brokerage is going to set up an account for an entity
that doesn't exist, and your d/b/a is not a legal entity.
While you've done an excellent job of separating your
personal from your business affairs, don't get carried away.
Just take the money from your business account and use it
for what you want.

While you're deciding where you want to invest, you might
want to take a look at IRS Publication 560. There are some
really good retirement savings possibilities available to
the self-employed.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

On January 6th of this year 2006, I started doing some work
from home as a Sole Proprietor, I have applied for Illinois
DBA license through the business registration form. I opened
a bank account in the name of the business to make sure even
though the businesses income and my income are one in the
same, I'd be able to keep better track of expenses.

I'm happy to say business is going quite well, I invested
$15,000 of my own money to get up and running and in only
two months have more than tripled it.

There's the back ground.... here's my question... business
is going quite well now, and I do not need any more funding,
and my expenses are quite low (as I am the only "employee").
I don't want this cash just sitting in a bank account.

Is it possible/legal to open a brokerage account in the name
of the company and take the cash out of the bank and trade
with it? (To be clear, I don't intend to take all the money,
I'll still have some backup in case of emergency)

If I do trade with the companies money, and lets assume
(dangerous I know) I'm successful does that money I made get
reported on my schedule "C" as income? How do I deal with
that?

I'm sorry, I realize I asked a lot of questions, but at
least to me they are important.

Thank you all so very much for your time,
Shhhh

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >