Business Name

[Mike_Knight]

What is the name of your state (only U.S. law)? Wisconsin

Say the IRS is making a habit of levying my income as an independent contractor. Would having my clients make the check out to a business name instead of my name be a temporary reprieve until I have to file taxes under that name next year?

 

[LdiJ]

What is the name of your state (only U.S. law)? Wisconsin

Say the IRS is making a habit of levying my income as an independent contractor. Would having my clients make the check out to a business name instead of my name be a temporary reprieve until I have to file taxes under that name next year?

No, because you would have to get an EIN number for the business in order to open a bank account to be able to cash the checks, and that would tie you to the business.

 

[Mike_Knight]

No, because you would have to get an EIN number for the business in order to open a bank account to be able to cash the checks, and that would tie you to the business.

Although forming a corporation would work because the EIN wouldn't be my social security. But then I would be facing double taxation.

 

[tranquility]

Double taxation? Maybe, maybe not--depending on your entity. But, the filing of the request for the EIN will link you to the corp and may subject anything you receive from the corp/pship/scorp/llc to garnishment.

 

[Zigner]

What is the name of your state (only U.S. law)? Wisconsin

Say the IRS is making a habit of levying my income as an independent contractor. Would having my clients make the check out to a business name instead of my name be a temporary reprieve until I have to file taxes under that name next year?

Please explain why we should assist you in avoiding your legal requirement to pay your taxes...

 

[Mike_Knight]

Please explain why we should assist you in avoiding your legal requirement to pay your taxes...

I'm not trying to avoid it. I need time to earn more money. I've lost income this year and barely have enough to survive. I don't have enough money to form a corporation anyway.

 

[davew128]

Google "alter ego" and the come back and tell us why this wouldn't work.

 

[abys32]

You may have already heard that there are many advantages to opening a business in order to collect payment from clients, particularly as an independent contractor. A big advantage, if done correctly, is that it limits a client's ability to access your personal assets if you are ever sued.

You can elect s-status as a corporation to avoid double taxation, but you must be able to keep on top of all the paperwork. An LLC also has benefits that avoid double taxation.

I think that others are saying that there would still be a garnishment if you attempt to draw from the business bank account. That, I don't know. Also don't know if an EIN would *delay* the garnishment process. It might matter if there are shareholders or members other than yourself.