Separate business/personal accounts?

[J. R. White]

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A corporate structure =96 an =93S=94 corporation =96 is cheap and easy.  =
And the
laws governing small =93S=94 corporations reveal all sorts of ways to =
take money
out of the business without paying income taxes, all legal.  I operated =
as a
proprietorship for a long.  Then, I incorporated, a number of years ago, =
and
have wished I did it sooner.  It=92s simpler, truly a lot simpler.  =
Don=92t be
afraid to incorporate. =20

JRW

P.S.: It=92s a convenient estate planning vehicle, too!

=20

  _____ =20

From: pianotech-bounces@ptg.org [mailto:pianotech-bounces@ptg.org] On =
Behalf
Of Piannaman@aol.com
Sent: Tuesday, January 03, 2006 7:52 PM
To: pianotech@ptg.org
Subject: Re: Separate business/personal accounts?

=20

Richard,

=20

I've been using my personal checking account for business for the last 4
years and have had no problems.  I keep track of all expenses and income =
as
I go.  My business name is Dave Stahl Piano Service(my name is in the
business name), which, in CA at least, allows you to deposit business =
checks
into your personal account. =20

=20

I'm to the point where I should probably worry about audits, and who =
sees my
accounts.  It's all pretty straightforward and simple as it is, though.  =
I
feel like a money funnel.  Money passes through me and into other
hands--IRS's and landlord's, mostly(BTW, can anybody explain to me what
"Service" they perform?...isn't it false advertising to call themselves =
a
"Service" if indeed they offer nothing for the money taken from those =
who
actually earn it?).  If I'm lucky, I can bank a bit and have some left =
over
for a vacation.

=20

All money for estimated taxes goes temporarily into savings until the =
time
comes to write the dreaded quarterly check. =20

=20

It's worked for me so far.  When my tax accountant suggests a change, I =
will
consider doing something else.

=20

Dave Stahl

=20

In a message dated 1/3/2006 8:58:07 A.M. Pacific Standard Time,
deanmay@pianorebuilders.com writes:

Hi Richard

=20

By being self employed you place yourself in a category of being higher =
risk
for an audit. I=92ve been audited twice. If you co-mingle the funds then =
they
will automatically be going through all of your personal records as =
well.=20

=20

The fewer records they go through, the better, IMHO. Since having 2 =
audits
(none of which turned up anything significant and the second one they =
did go
through all of my personal records) I now pay as much as I can by cash =
for
personal expenses. None of their business so I am not keeping any =
records.
Every time you write a check, use a credit card, use a drug =
store/grocery
store discount card, make an ATM withdrawal, you are leaving a paper =
trail.
Don=92t kid yourself that you have nothing to hide. One of the things =
they
didn=92t like in my personal records was how much I gave to charity. Now
nobody knows.=20

=20

=20

Dave Stahl

Dave Stahl Piano Service
650-224-3560
http://dstahlpiano.net/ <http://www.dstahlpiano.net/>=20


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