EINs

You can shop around for business accounts but if you are running the "company" under your own name there is not an issue plus you don't need a DBA. The main thing is to keep your business and personal accounts and expenses separate. Do not intermingle the two. It makes life for taxes easier and when they do question you about something you will have more on your side for proof.

 

I was thinking I could start putting money in the business checking account now, and when I had the money to start, I would be pulling money from the already established business,,so to speak. My plan/goal is to start out contracted to a company, and use their authority. My plan/goal is to do this for no more than 6mo's than, move onto getting my own authority.

 

Awe,my dad ALWAYS used to say that EVERYDAY!

 

The money going into your business acct has to be "paid" to your company name. I wouldn't advise paying double taxes on it. When you open a business acct you will have to supply ppwk for the business . I recommend a credit union,better int. rates and free checking. Also if you get financing for your truck with them,much better rates. "One stop shopping"

 

This Company Name thing you speak of... Your saying to open a Business Checking account I have to have a company name? Does that name have to be INC, LLC or Co. ? I am kind of confused why I have to have a name but, I am thinking that the business account is linked to the tax system, hence is why you have to have an EIN to open one. So, if I was to be contracted to a company, using their authority, would that be the name I would use? Definitely glad I asked my original question...thanks for all the reply's.

 

If you are going to lease to a company then you will be a Sole Proprietor, INC, LLC, is a waste of time and money for most owner operators, and not to mention its a hassle. When I set up my EIN I used my name (first and last) and a DBA. (Doing Business As)

 

Okay, that makes sense, had no plans on getting an LLC or Inc or Co. anyway. Guess I got more confused with what Charlie's Girl said. Do taxes have to be paid on money in that account, quarterly or whatever?

 

No, you will be running under a Sole Proprietor, you can fund your business account know if you wish, the only taxes that you will pay is on what is earned thru that business after all deductions have been taken.

 

That's what I thought and that is why I figure starting a business account and putting money into it now won't hurt anything. I am still looking into who I want to set up my account with, may look into credit union's but have NO plans on financing anything. This will be a strictly cash business, well cash out of my pocket anyway.

 

That's the preferred way of doing it, you will be light years ahead everyone else that doesn't have the patience you do.