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

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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: 4 months ago.Category: Tax
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12/5/2017
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 4 months ago
Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 2,175
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
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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.

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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 4 months ago

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

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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 4 months ago

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Customer reply replied 4 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, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 4 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

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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 4 months ago

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

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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 4 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.

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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 4 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/

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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 4 months ago

Does this information help clarify your question?

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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 4 months ago

Please let me know if you have any outstanding questions

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