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I am a psychotherapist who, as of this month, will i work…

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I am a psychotherapist...

I am a psychotherapist who, as of this month, will i work exclusively as a consultant w/ a 1099. I have accepted 3 'fee for service' "positions" and see clients at 3 separate offices that each has an owner. I want to become an LLC for ax purposes and will discuss with my accountant. What I am wondering is if there is any legal/or tax reason that any of the owners would be reluctant to pay an LLC versus me directly. And whether they even have to know if I get the business in my first and last name. If they make the check out to me and I deposit into my business account, with the same name is ***** ***** acceptable practice or does the check have to specify my name with "LLC" at the end of it?

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

I am going to make anywhere from 90k to 115k.

Submitted: 4 months ago.Category: Tax
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11/25/2017
Tax Professional: Tax.appeal.168, Tax Accountant replied 4 months ago
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,558
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
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Hello. Thank you for choosing this Q&A service for assistance. My name is***** am reading over your inquiry. I will respond to you shortly.

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Customer reply replied 4 months ago
ok
Tax Professional: Tax.appeal.168, Tax Accountant replied 4 months ago

Q: What I am wondering is if there is any legal/or tax reason that any of the owners would be reluctant to pay an LLC versus me directly.

A: No, there is no legal or tax reason why the owners would not be able to pay your LLC in opposed to paying your directly. If you want to be paid through the LLC, you would need to provide them with that information on the Form W9. As you have not yet formed the LLC, you will complete the Form W-9 using your name and social security number. When you form the LLC, you can complete another Form W-9 and ask the owners to make the payments to the LLC instead of making the payments to you as an individual. In order for them to make payments to the LLC, as mentioned previously, you will have to complete a Form W-9 showing the information for the LLC. I am answering your other question under separate cover.

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Customer reply replied 4 months ago
Okay, and how much would I potentially save with an LLC versus just 1099.
Customer reply replied 4 months ago
How much does it cost to become an LLC, and do I need an attorney or would an accountant suffice?
Tax Professional: Tax.appeal.168, Tax Accountant replied 4 months ago

Q2: If they make the check out to me and I deposit into my business account, with the same name is ***** ***** acceptable practice or does the check have to specify my name with "LLC" at the end of it?

A2: To keep things simple and clean, if you are wanting the payments to be made to the LLC, the checks should reflect the name of the LLC and not your name as an individual. The IRS frowns on checks made payable to an individual being deposited into a business account. If there was ever an issue, the IRS would look at this as commingling funds. Something that you should not do. You should always keep your business income and expenses separate from your personal income and expenses. Depositing a check with your name on it into the business account is not a good idea.

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Tax Professional: Tax.appeal.168, Tax Accountant replied 4 months ago

It is not that expensive to form an LLC. The typical rates to form an LLC are between $400 and $600. While I can;t provide you names of companies that provide this type of service, you can google forming an LLC and some companies that provide this type of service will show up. When you write 1099, you mean a sole proprietor. At the following link you can view the comparison between an LLC vs. being a sole proprietorship.

https://www.legalzoom.com/articles/llc-vs-sole-proprietorship

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Customer reply replied 4 months ago
Just one more quick clarification- what if the name of the business is my actual name?
Tax Professional: Tax.appeal.168, Tax Accountant replied 4 months ago

Using your name is ***** ***** if you are going to form an LLC, you will need to have the letters LLC behind your name, and the checks will have to reflect the same info.

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