Accounting Question

[phillip]

If anyone can help me with a accounting problem that would be great.

Few questions, I'm starting a business that deals with me recieving payments and cutting checks to my clients, does this require a w9 form? and does this make it so I am only taxed on what I earn for myself

second, if me and my partner split the site earnings am I taxed on his portion and is there any way to avoid this because all the income comes through me first.

Any other advice you think would help me out is welcomed also

thanks!

 

[pfgannon]

second, if me and my partner split the site earnings am I taxed on his portion and is there any way to avoid this because all the income comes through me first.

A simple solution would be to just have your partner forker over half of the taxes to you to pay. I guess it depends on how much you trust your partner and vice versa.

Good luck.

 

[jened]

when you are paying your clients money, you'll need to send out 1099 forms

edit: and don't just trust our advice, spend a little money and do this right up front.

 

[mkrongel]

First you should be forming a corporation and being paid in the corporations name. The corporation should be a partnership with ownership split on how you split revenues (i.e. 50% to you and 50% to him or 70% to you and 30% to him, etc.) This way when you do your taxes the money left over is distributed to the partners based on their ownership.

You DO NOT have to issues 1099's to corporations, you DO have to issue to individuals.