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Question
How do I go about seperating personal income from my business income?
I'm going to college in the fall and I currently run a business, I need to remain under a certain income to remain eligable for financial aid or I may end up paying more for school then I'm making from my business putting me at a net-loss due to my business. I'm trying to decide on whether to make a corperation, LLC, S Corperation, I want all the income of my business to show up as company income and pay myself a salary, I heard a single owner LLC will require me to pay taxes on a 1040 meaning that it shows up as personal income so that's a no-no for me I think, but what other options are there? I want income made from my company to show up as company income, and my personal income to be a set salary I pay myself as the manager of the company - keeping my income below the max to be eligable for financial aid. Thanks for any help!
5 months ago - 1 answers
Best Answer
Chosen by Asker
You don't have to go to the trouble to start a corporation to keep these seperate. Just open a seperate bank account (and get a seperate credit card if you need one) and keep all business income and expenses going thru to bank account/ credit card dedicated to the business. This way you don't mingle the funds and its easy to see what you have spent and made. You can keep the business realted accounts in your name, even though they are dedicated to the business.
5 months ago
Asker's Rating: 