Hello, This is my first post here but Ive been searching for information online for weeks.
I have spoken to a couple professional accountants but I still have questions, and want to look here in the hopes that someone here has first hand experience with a similar situation.
My business is music engineering and live performances. About 2 years ago I decided to quit my hourly job and pursue music full time. I am able to support my family but for the past couple of years nearly all income was cash and I did not claim it. I realized the problems with this when I talked to a mortgage loan counselor in the hopes of purchasing a house within the next few years. I realized in the eyes of any bank I have basically no historical income and only my wifes income was all that would be counted.
So, I started a single member LLC. I have an EIN and a bank account. I was considering writing myself bi-weekly paychecks with pay stubs to bring to my bank when asked for employment verification and pay stubs in hopes this would at least allow my income to be counted for a small personal auto loan since I have no historical income represented for my LLC as is right now.
Does anyonoe have any advice or experience with a similar problem?
Any help is greatly appreciated!
Thanks for the advice Eddy,
I'm hoping to set everything up correctly in the beginning so that when tax time does come around I'm not tripping over previous mistakes. I do have an accountant that has been giving me great advice but in the end i know Ill need to hire someone.
Because my income is pretty much all accounted for and goes to my personal bills, Im looking for a less expensive (than quickbooks with payroll) way to print out these checks and pay stubs so that they look professional and not just personal. This will also be useful soon when I start having to issue checks to other people who will be under me as well.
Any advice on an online or offline basic accounting platform to use that can accomplish this?
It seems that many of the leading accounting software providers charge monthly payments, which I would really like to avoid. It also seems most charge a very substantial additional fee for payroll services. My needs are VERY basic right now and I am hoping to avoid expensive programs offering services, most of which are beyond what Ill likely use.
My name is Eddy. As a single member LLC, you can write yourself checks at anytime for the most part.
It will show the bank a consistent history. They will probably want to see 6 months of consistency though.
The bigger concern is making sure your taxes are being handled properly. Make sure get a good accountant in your area to take care of you.
--- Eddy Hood | http://ignitespot.com/blog | Twitter @ignitespot
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Hey, just wondering how you are doing with getting your LLC set up? I just joined myself, and I know I'm a few months late but thought I would put myself out there to make sure you don't have any other issues before year end. One detail I want to clarify for you - if you are a single member LLC you cannot pay yourself a "paycheck" as if you are an employee of your own company. Of course you can take out any money you want, you own the company! But, you should not be withholding social security and medicare and federal/state tax like you are obligated to do for your employees. Your bank will probably want to see 2 years of tax returns with self employment income to approve a mortgage. Good luck with everything!