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DaveNay

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This is a question for those of you running a small business. Currently, I am using Quicken Premier Home & Business 2004 to track our personal and business accounts. However, earlier this year we finally incorporated (S-Corp election) and I am not sure if I want to keep the personal and business stuff mixed. I know that as an S-Corp, we still file the company under our personal taxes, but I'm not sure if tracking them mixed is the best. What software do any of you use, and what is your opinion regarding hte mixed mode of Home & Business. Should I just upgrade to the latest version, or switch to QuickBooks for the business?

And Bob....I know you don't look at your car engine, so I assume you don't look at your companies accounting, so any smart ass comments are going in the circular filing cabinet. :D

P.S. Since there seems to be quite a number of small business owners, anyone think this could be a category for Doc to create?
 

Melensdad

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Actually I do look at the accounting, but the company is a C Corp not an S Corp and my other interests are in LLPs not corporations. I'd help if I could, but I don't know the S Corp rules.
 

DaveNay

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B_Skurka said:
Actually I do look at the accounting, but the company is a C Corp not an S Corp and my other interests are in LLPs not corporations. I'd help if I could, but I don't know the S Corp rules.

Believe it or not, S corp tax rules are probably 99.9% the same as C corp, the biggest difference is everything comes through to our personal taxes, and is not subject to corporate income tax.
 

REDDOGTWO

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First item is that the S corp is a separate entity. Period. You do not mix the books with it. Period.

The S corp files its own income tax return. This is on the federal and state level. The rules for deductibility follow pretty much what the C corp can do.

There are exceptions to this, one being deductibility of health insurance for the owners.

The S corp does not pay any taxes except in some extreme cases.

The owners of the S corp list the income and certain deductions on their return. The individuals pay the tax on the income of the S corp based upon their individual rates.

The S corp should have its own checking account etc. and should be completely separate from any other entity.
 

DaveNay

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REDDOGTWO said:
First item is that the S corp is a separate entity. Period. You do not mix the books with it. Period.

The S corp files its own income tax return. This is on the federal and state level. The rules for deductibility follow pretty much what the C corp can do.

There are exceptions to this, one being deductibility of health insurance for the owners.

The S corp does not pay any taxes except in some extreme cases.

The owners of the S corp list the income and certain deductions on their return. The individuals pay the tax on the income of the S corp based upon their individual rates.

The S corp should have its own checking account etc. and should be completely separate from any other entity.

So I take it your suggestion is to have separate data files for personal and business? That is how I am greatly inclined to do it.
 

REDDOGTWO

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Absolutely, if not the IRS, with the mixing of records and funds will disallow the corporation completely.
 

DaveNay

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REDDOGTWO said:
Absolutely, if not the IRS, with the commingling of records and funds will disallow the corporation completely.

Ahh...I never said the funds were mingled. There are absolutely separate accounts. I was just looking at it from the software point of view. :thumb:
 

REDDOGTWO

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Even the books have to be by themselves. A lot of the software programs will have options for different companies.
 

mtntopper

Back On Track
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Quicken Premier Home & Business 2004 to track our personal and business accounts

Quicken Premier Home & Business should have the capability to separate personal and business accounts as two different entities or accounting systems. Keep separate records for both home and business to satisfy the IRS rules and maintain the validity of your business entity.
 

XeVfTEUtaAqJHTqq

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Interesting thread. I just went solo as a computer consultant/programmer last month. I've been waiting until after tax season to pester my accountant about what he thinks I should do.

As a programmer/consultant that typically works on small projects (corporate websites and front end apps to databases) do I need to incorporate? I really don't work on anything that involved life/death or financial risk so I'm not sure I have to worry about liability issues too much.

I've got to get my butt in gear and start working on the quicken stuff.

Any advice is appreciated.

PB
 

bczoom

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OK, my 2 cents.

I've been involved in several S corps and now acting as an independent (and PB, I'm in a similar business as yourself).

For a S Corp - Yes. Keep separate books. TurboTax will prompt you through it. Just keep aware of what's going on so you don't get any surprises on you're K-1.

As an independent. This is kind of new to me.

I've been using EFTPS. It's fast and easy. Computing the $ is up to you and they don't offer an algorythm. I just use my % from 2005 and add the 15.3% for FICA and I think I'm in the ballpark.
 

XeVfTEUtaAqJHTqq

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BC - Just to clarify, did you incorporate? Was this strictly a liability issue or were there other factors that influenced you?
 

DaveNay

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bczoom said:
I've been using EFTPS. It's fast and easy. Computing the $ is up to you and they don't offer an algorythm. I just use my % from 2005 and add the 15.3% for FICA and I think I'm in the ballpark.

If you are doing estimated quarterly payments, I believe that is more than close enough.

That's why they are called estimated. :pat:
 

MadReferee

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PBinWA said:
Interesting thread. I just went solo as a computer consultant/programmer last month. I've been waiting until after tax season to pester my accountant about what he thinks I should do.

As a programmer/consultant that typically works on small projects (corporate websites and front end apps to databases) do I need to incorporate? I really don't work on anything that involved life/death or financial risk so I'm not sure I have to worry about liability issues too much.

I have been doing just this for the past 15 years. My consulting business is just a sole prop and I plan to stay that way. My consulting income is declared on a schedule C. Because I have a home office some expenses are divided up between the regular house and the business. My accountant does all that for me. Right now I see no advantage in going to anything other than a sole prop.
 

XeVfTEUtaAqJHTqq

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MadReferee said:
I have been doing just this for the past 15 years. My consulting business is just a sole prop and I plan to stay that way. My consulting income is declared on a schedule C. Because I have a home office some expenses are divided up between the regular house and the business. My accountant does all that for me. Right now I see no advantage in going to anything other than a sole prop.

Thanks Mad! Now I owe you for business advice and plans for my clamp-on forks (80% completed)!

Someday, I'll have to take a trip east and spend two weeks taking people out for beer! I know I owe BC a few too!
 

OhioTC18

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My wife started a business, got incorporated and used the S corp thingie a few years ago. At that time, she looked at Quicken and Peachtree but decided on DacEasy. Now the company she is with is using ComputerEase. She always kept our books separate. Ours was ours and the corp's had it's own.
Anyone want to buy my 49% ownership of a company that has shown no activity or profit in the last 10 years? ;) . Maybe some day we'll dissolve it. We have not filed corporate taxes for 8 years with the IRS's blessing.
 
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