Anybody Have A Small Business Account?

[Andeyhollawho]

Ok I got a question. I put up a thread about mystery shopping and I'm getting some great feedback on it but this is a whole different question so thus a new thread.

Mystery shopping is a independent contractor situation so you are responsible for your own taxes. Is it a good idea to open a small business account for this or is it a waste of time below a certain amount of money?

And how hard is it to open a small business account? Experiences? Best situations?

 

[shanebp1978]

Mystery shopping is a independent contractor situation so you are responsible for your own taxes. Is it a good idea to open a small business account for this or is it a waste of time below a certain amount of money?

And how hard is it to open a small business account? Experiences? Best situations?

It's not hard, you usually need to have an actual registered business, a DBA, to open a business checking account. But as an independent contractor your name is your business and your SSN may be used as a EIN. I would talk to your local banks and find out their requirements.

 

[cooliojones]

Unless u make a ton from it, just keep good records and that should be enough.

 

[Raptor ES]

a separate checking account is fine. You can run it as a sole proprietorship.

 

[kjxxxx]

a separate checking account is fine. You can run it as a sole proprietorship.

Unless the money is consistent and it's not a hobby (you make a living from it then you are fine just with what Raptor says. In fact I think that's the best way. At the end of the year if they don't give you a 1099 the you should still be able to use their records to generate your income that would go on the 1099. If that wont be available and you have the money in a separate checking account then you can use then the total deposits from them is the number you will use on the 1099.

If you make a bunch of money and this is going to put you in a higher tax bracket then you could put it in a company then file as a C-Corp then keep the income trapped in the corp at 15%. When you are at that stage you ask about C-Corp and we can go into it more then.