cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Not applicable

About mixing business and personal funds

I'm a young kid, and the company I work for made me get an LLC 1099.

this whole past year I have been using my LLC debit for EVERYTHING! I found out the other day its a no-no to do this... please can anyone help me?? how do fix this?

 

peace, love, and happiness. 

 

Thank You!

 

Solved
Best answer 01-02-2019

Accepted Solutions
Established Community Backer ***

Re: About mixing business and personal funds

Kudo's on starting out early with your own business.

 

Like any sport, or computers, or hobby, you need the basics, and in this case that is called accounting. Small business accounting is not hard, and the truth is you already know most of it. What you do not know is the terms that, IMO accountants created as job security. There are free into to accounting classes all over the net, make use of them, and ask questions here to clarify what you need.

 

True that you do not mix business and personal finance in one accounting file.

in QBSE, mark the transactions that were personal as just that personal. In the future just take a lump sum out of the business as a personal transaction, and spend it as you need to for personal stuff.

4 Comments
Established Community Backer ***

Re: About mixing business and personal funds

Kudo's on starting out early with your own business.

 

Like any sport, or computers, or hobby, you need the basics, and in this case that is called accounting. Small business accounting is not hard, and the truth is you already know most of it. What you do not know is the terms that, IMO accountants created as job security. There are free into to accounting classes all over the net, make use of them, and ask questions here to clarify what you need.

 

True that you do not mix business and personal finance in one accounting file.

in QBSE, mark the transactions that were personal as just that personal. In the future just take a lump sum out of the business as a personal transaction, and spend it as you need to for personal stuff.

Established Community Backer ***

Re: About mixing business and personal funds


@graves wrote:

the company I work for made me get an LLC 1099.

 

 


If you work only for this company and they determine your work, then you are an "employee", not a "contractor". 

Contractor' earnings are reported to the IRS with a 1099 form, while employees earnings are reported with a W2 form

Some businesses decide their workers are contractors so they don't have to pay the employER's share of payroll tax, which is about 10% of the wages. This is against the law as the employer doesn't get to decide.

If you are an employee they can't make you get an LLC. 

You can fill in a form to ask the IRS to determine whether you are an "employee" or a "contractor". This may upset the company you work for, but most companies abide by the law.

Established Community Backer ***

Re: About mixing business and personal funds


@Malcolm Ziman wrote:

 This may upset the company you work for, but most companies abide by the law.

Yea you think?  ROFL, and may lead to a new job search.

 

The nice part of this situation is that if the IRS were to find out, and determine that he is in fact an emploee, the fines and penalties do not fall on him.  The way the job market is today for young people, I would keep the job.

Not applicable

Re: About mixing business and personal funds

Yes, for the first year I was a w2 employee. then they made me switch saying it will be better for me anyway, so I did.

I don't want to make anyone mad or lose my job I'm just looking for the best way to to go about it. Thanks for the help guys! 

Need to get in touch?

Contact us