A Business Question

[Dale Probst]

Tom,
Couple of suggestions: check out your local Small Business Development
Center for advice. Second, consult a tax specialist not a CPA. Enrolled
agents get way more training on tax preparation than CPA's do. 
Best,
Dale
Dale Probst, RPT
Ward & Probst, Inc.
email: wardprobst@cst.net
(940)691-3682 voice
(940) 691-6843 fax


-----Original Message-----
From: owner-pianotech@ptg.org [mailto:owner-pianotech@ptg.org] On Behalf
Of Tvak@AOL.COM
Sent: Tuesday, December 04, 2001 9:41 PM
To: pianotech@ptg.org
Subject: Re: A Business Question



In a message dated 12/4/01 8:22:41 PM, cedel@supernet.com writes:

<< I agree with Wim that if there is something you really should be
doing to 
be
legal, then do it. >>

Absolutely.  I don't want to do anything that's not totally above board.
As 
I had mentioned, I did actually register a business with the county
several 
years ago, and therefore I do have a business license, but I don't
really do 
business under that name any more; I use my own name.  I have considered

changing the name of the business to my own name, but...

<<As my CPA
says, in my case my business and I are essentially the same entity.>>

That's how I feel.  If I want to do business under my own name, do I
have to 
register my name as a business?   I don't want to do anything illegal,
but it 
seems redundant.  If a client writes a check to me, I would have to
deposit 
it in the business account, but if my Mom writes me a check (for my 
birthday), it goes in the personal account?  Seems like splitting hairs.

Tax-wise I do claim all my income, so the first check I would claim, the

second I would list as a gift.  Why pay for a checking account to
separate 
things out when they are separated at tax time anyway?  

I guess my question was whether there was some tax advantage to doing it
that 
way.  If I could see an advantage to it, maybe it would make more sense
to 
me.  Or maybe what Wim is suggesting is that legally I have to.  I've
been 
operating on the assumption that a check written to me is a check
written to 
me.  Not to a business.  I provide a service, but it's me who's
providing the 
service.  It goes in my ledger, in which I keep track of every check (I
do 
claim everything.) and it goes into my personal checking account, just
like a 
payroll check would if I worked for an employer.  And then I spend it.
My 
business expenses are deducted against all my income at tax time.  I
also 
have income from performing and teaching.  I itemize them each in
separate 
categories, but my tax man just totals them up, and subtracts my
deductions 
from the total.  Now, I've already come to the conclusion that I need a
new 
tax guy, but am I going to jail for this?

Clyde, you said you deposit your checks in the business account and then
pay 
yourself a salary.  Cash goes in your pocket and you deduct that amount
from 
your weekly salary check?  Is it because of the sales tax issue?  It
seems so 
overly complicated.  

I've never been much of a businessman.  I don't mean to pry into
anyone's 
personal financial doings, but now I'm thinking I may be doing this all 
wrong.  I certainly want to do things the legally correct way, but
Clyde's 
system seems like robbing Peter to pay Peter!

I think I need to talk to a new accountant about all this.  Or perhaps a

psychoanalyst.

Tom Sivak