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Old 02-04-2009, 04:05 PM
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There are a number of reasons why you should have all the customers pay the S Corporation and not you. One is the fact that the S corporation was created specifically to offer you protection against possible lawsuits.

Another reason is that the Business would clearly be in the name of the S corporation and not you. So, officially you should not be accepting any checks written on your name. In the future, you should not accept any checks in your name, instead have your all your customers write checks in your name.

As for the tax year 2008, if you have had any checks that were written in your name, simply deposit these into the S corporation's bank account. In the event you receive a 1099-Misc in your name for the amounts written on your name, you would claim this income on your Schedule C of your tax return and claim a deduction in the same amount, representing the checks that you had deposited into the S corporation name. The net impact would be Zero on schedule C.
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