I work as a web designer, and some projects I would prefer doing under my
real name, rather than under a fictitious business name, because I know the
client in person, or the client is outside the scope of my target market.
When they write checks to me, can they write checks to my real name, or am I
required to receive checks under my fictitious business name only? When
filing taxes, would I report this income under Schedule C for my business, or
as other income of some sort?
Would really appreciate advice.
Thanks
I called the IRS today and asked them, they said as long as I am a
sole-proprietor, with no employees, it doesn't matter whether I use my real
name or fictitious business name. I would file only one Schedule C, because
my business and name are not seperate from each other in the legal sense.
In many states, it doesn't matter whether checks are made out in your name or
your business's name. What matters is the account into which the check is
deposited. I deposit all business-related income into my business account and
I track it in Quickbooks. That way, I have a record of all income and
expenses for tax purposes. Just be consistent with each client. Either have
them issue all checks in your name or all in the business name. That way, if
you are paid $600 or more and need to receive a 1099, the business will send
only one. The IRS doesn't care how the check is issued; they just want their
share.
Some of my larger clients include both my name and my business's name on
their checks, perhaps for their accounting purposes. That may be an option
you want to consider.
I have found all revenue checks must be made out to the name associated with
your company federal ID or your personal social security number. This
fulfills the requirement to the payor who is required by federal tax law to
issue a non-employee 1099-misc for any TOTAL payments exceeding 600 USD in
any given year.
If you wish to use two different business names then you should get two
federal business ID numbers. This of course will require you to file TWO
annual tax returns. For example if you are self employed, ie you do not have
a corporation in place, then your personal 1040 would include TWO scheule C's
one for each business name and federal ID number.
ak2 | Window Shopper | 3/5/2013 - 10:53 pm
I called the IRS today and asked them, they said as long as I am a
sole-proprietor, with no employees, it doesn't matter whether I use my real
name or fictitious business name. I would file only one Schedule C, because
my business and name are not seperate from each other in the legal sense.
BizResearcher | Window Shopper | 2/19/2013 - 12:12 pm
your business's name. What matters is the account into which the check is
deposited. I deposit all business-related income into my business account and
I track it in Quickbooks. That way, I have a record of all income and
expenses for tax purposes. Just be consistent with each client. Either have
them issue all checks in your name or all in the business name. That way, if
you are paid $600 or more and need to receive a 1099, the business will send
only one. The IRS doesn't care how the check is issued; they just want their
share.
Some of my larger clients include both my name and my business's name on
their checks, perhaps for their accounting purposes. That may be an option
you want to consider.
targetmgt | Window Shopper | 2/17/2013 - 11:20 am
your company federal ID or your personal social security number. This
fulfills the requirement to the payor who is required by federal tax law to
issue a non-employee 1099-misc for any TOTAL payments exceeding 600 USD in
any given year.
If you wish to use two different business names then you should get two
federal business ID numbers. This of course will require you to file TWO
annual tax returns. For example if you are self employed, ie you do not have
a corporation in place, then your personal 1040 would include TWO scheule C's
one for each business name and federal ID number.
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