I'm a financial advisor and my broker dealer pays me all my commissions and fees throughout the year. My broker dealer will provide me with a 1099 at the end of the year. So of course, they do not do any tax withholdings
for me. It's up to me to take care of my own quarterly tax payments
. So I’ve set up an S-Corp. I pay myself a salary and withhold the appropriate taxes, on which I file on a quarterly basis with the Fed and State.
I’ve also been told that I have to have the commissions and Fees dropped into my personal bank account and not my S-Corp bank account due to FINRA regulations. That any securities commissions have to be paid to an individual not an entity.
I have set up and use Quicken to track my personal finances and Quickbooks to track my S-corp finances.
It is real easy with Quicken to track the commissions and fees as are deposited into my personal account. I then enter those deposits as accounts receivable chart of accounts entry then transfer those funds into my S-Corp account.
With Quickbooks, I then create an invoice for each deposit into my personal account using my Broker-dealer as the customer and receive the payment as an account receivable chart of accounts entry.
My question has two parts
1) Is that the correct way handling the commissions and fees using Quicken and Quickbooks? Or is there a better way.
2) How is 1099 income treated at tax at the end of the year and filing income taxes
and what do I have to do so the commissions and fees pass through to the S-Corp so it is not double counted as income to myself?