Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
What Kind of Joint Bank account Should we get for our corporations?
My corporation is doing business with another corporation for real estate leasing. I am a real estate broker so I accept the rent from students and the other corporation will manage the funds/pay the bills/pay the salaries through that same account. Because we will both be on the account, how do we avoid tax implications from falling on me 100% ?
Basically we just want to make sure we get taxed properly and not too much.
2 Answers
- FredLv 58 years agoFavorite Answer
No, you cannot do this; both the IRS and the bank will not allow it. It is "mingling funds". The company that collects the rent will have to issue a check to the management company for "Management Services".
Also, it is a violation of GAAP, Generally Accepted Accounting Practices.
Two corporations requires 2 sets of books and 2 tax returns.
"I am a real estate broker so I accept the rent from students "
If all you are doing is accepting the rent, you can be an officer on the other company without having any ownership. This would allow you to collect the rents and deposit them in the management company's bank account.
- OldladyLv 78 years ago
Your corporation is not going to do well if you come on a site like this asking for legal/financial advise rather than paying professionals. You need to talk to an accountant or a lawyer who specializes in small corporations. It's worth the money for a one visit advice session.
Source(s): Retired attorney
