Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I have a Corp that is a holding co. I am looking to take…

Customer Question
I have a Corp...

I have a Corp that is a holding co. I am looking to take over a few family businesses that my family runs but does not want to do marketing, accounting etc. They just want to be an employee of the business. Do I need separate bank accounts for each one or can keep the books on each virtual and into the holding co. account?

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

Not that I can think of..

Submitted: 7 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 4 minutes by:
12/5/2017
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 7 months ago
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,637
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
Verified

Welcome to JustAnswer!

My name is ***** ***** I will be able to assist you today.

Q: "Do I need separate bank accounts for each one or can keep the books on each virtual and into the holding co. account?"

A: Since your business is incorporated, the IRS requires that you keep a separate business bank account. It doesn't matter if your business is a corporation or a partnership or an incorporated sole proprietorship.

___

If you have a separate account for your business transactions, then you have a clean record at the end of the year. Remember to keep all your invoices and receipts to match up to your checkbook and bank statement entries and you will be in good shape when income tax time rolls around.

Ask Your Own Tax Question
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 7 months ago

Please let me know if I was able to answer your question clearly or ifyou have any additional questions.

Ask Your Own Tax Question
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 7 months ago

If you have no further questions please take a moment to accept and rate my answer by clicking on three stars or higher.

A positive rating of five stars is always appreciated.

Thank you!

Ask Your Own Tax Question
Customer reply replied 7 months ago
Hi Chad- I think there is a misunderstanding. I have a checking account open for the C corp./ holding co. My questions is IF I acquire these other businesses do I need to keep an ADDTIONAL business checking account for each one or can I sweep all the monies into the present corp. account. I use quick books and would keep track of expenses of each company separately
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 7 months ago

You should keep separate accounts for each individual business.

Therefore If you acquire these additional businesses you should keep separate/additional bank accounts unless the companies you are acquiring will be part of your current company

Ask Your Own Tax Question
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 7 months ago

You are able to create separate companies on quick books and keep track of income and expenses separately.

Ask Your Own Tax Question
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 7 months ago

If the other businesses are also separate corporations then, you must keep business finances separate because the business is considered a separate legal entity.

Ask Your Own Tax Question
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 7 months ago

Below is a link to the quick books resource center for further verification

https://quickbooks.intuit.com/r/financial-management/the-importance-of-keeping-business-and-personal-finances-separate/

Ask Your Own Tax Question
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 7 months ago

Does this information help clarify your question?

Ask Your Own Tax Question
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 7 months ago

Please let me know if you have any outstanding questions

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Chad EA, CDFA®, CFP® Your Own Question
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,637
2,637 Satisfied Customers
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA

Chad EA, CDFA®, CFP® is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Lev Question on an LLC that hold real estate only, not taxes
Hello LevQuestion on an LLC that hold real estate only, not taxes as an S-Corp or Partnership. Owner of the Real Estate Purchased the property to start a business in it. The property was renovated and… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
IRS Tax Question: Setting up an accountable plan. What is
IRS Tax Question: Setting up an accountable plan. What is the best way to do this for employees of an S-Corp? I own an S-Corp and want to make sure that i am properly reimbursing myself for mileage, h… read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
CERTIFIED FINANCIAL PLANNER ®, Professional
Master's Degree
2,637 satisfied customers
My business partner and I are forming 5 companies. We will
My business partner and I are forming 5 companies. We will be 50/50 owners of four of them and own 66% of the 5th (the remainder will be owned my another individual). All companies will be based in Wy… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,450 satisfied customers
I am self employed and my wife is beginning a job that pays
Hi, I am self employed and my wife is beginning a job that pays her commission only. They will not deduct any taxes. I am thinking about forming a LLC and put us both under that. … read more
abci168
abci168
Principal
27 satisfied customers
If a trust has two business that are LLCs (in the State of
If a trust has two business that are LLCs (in the State of Ohio) and elected Sole Proprietor as the Taxation but now one of the businesses wants to hire an employee. Can that be done? Can a business t… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
An LLC is created. This LLC is purchasing a property
An LLC is created. This LLC is purchasing a property renovating it, using some of it as an office and then renting the rest out. The owner is considering having his single member S-Corp own the LLC. I… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have a business value question. We are a 4 man LLC
I have a business value question. We are a 4 man LLC software consultancy firm with an exiting member so we wish to buy out his shares. We elected as an S corp. this year. Our only assets are cash in … read more
Jonathan Tierney
Jonathan Tierney
MBA
295 satisfied customers
I will have 3 S corps. I'm trying to figure out how to
I will have 3 S corps. I'm trying to figure out how to organize things. Right now, there is income from different products going to the different companies. Company A: Gets income from one an in-house… read more
Jonathan Tierney
Jonathan Tierney
MBA
295 satisfied customers
I have a client that is an Scorp. Years ago the owner 50%
Hello, I have a client that is an Scorp. Years ago the owner 50% shareholder with his wife built a building and part of the financing was a loan from the Scorp. During a down turn in business the loan… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I own an LLC that is service oriented (Healthcare), and files
I own an LLC that is service oriented (Healthcare), and files a schedule C. I an thinking of purchasing rental properties in THIS LLC ' S name. I would be doing nothing with the properties except rent… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have inherited a personal C corp from my mother as stock.
I have inherited a personal C corp from my mother as stock. I own 95% stock, my sister owns 5%. Its a personal service corp (engineering) which incidentally I have run for 20 years and still run. Asse… read more
socrateaser
socrateaser
1,031 satisfied customers
I have owned a c corp (sole owner) for about 6 years, providing
I have owned a c corp (sole owner) for about 6 years, providing security/administrative services. I have taken a minimal salary the past few years in order to grow my business, cover payroll, etc. Aft… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I founded a company late last year, as a C-corp. We are not
I founded a company late last year, as a C-corp. We are not generating any revenue but only paying out expenses to developers. Problem is we did not create a separate bank account for the company but … read more
Phillip Bell, EA
Phillip Bell, EA
Tax Advisor
Bachelor's Degree
191 satisfied customers
I have an established s corp and am opening a new division
I have an established s corp and am opening a new division by starting a LLC wholly owned by my s corp. What is the proper structure for this type of arrangement. Do I keep separate books for the LLC … read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
THIS IS FOR RLWEA-- Question about bookkeeping method for multiple
THIS IS FOR RLWEA-- Question about bookkeeping method for multiple businesses As previously shared I have seperate LLC's for each rental that I took back from investor who stopped paying. My bookkeepe… read more
RLWEA
RLWEA
Enrolled Agent
Bachelor
69 satisfied customers
I want to expand our auto custom painting business to include
I want to expand our auto custom painting business to include vinyl sign graphics, but I want to use a more marketable name for the vinyl sign element. Can I use a dba for the vinyl sign part and run … read more
CPAforHire
CPAforHire
Bachelor's Degree
67 satisfied customers
I currently own an S-Corporation. I was wondering if my wife
I currently own an S-Corporation. I was wondering if my wife can set up a seperate LLC and we can hire her company as a consultant vs making her an employee. I was thinking about doing this so that sh… read more
Jon Andrews
Jon Andrews
CPA
2,926 satisfied customers
Hi. I am the owner of NY S Corporation. I am the only employee
Hi. I am the owner of NY S Corporation. I am the only employee of this corporation. I live in NJ. The online payroll company I use is prompting me for my NJ Employer registration number. Do I need a N… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x