Escrow Accounts And Related Tax I am starting an online company and I will be using the paypal account as an escrow to hold funds while jobs are being completed, then releasing the funds once the job is completed. I then will take a small percentage (11% to 22%) of the escrow amount as my commission.
My concern is that at year-end, PayPal will send me a 1099 saying I've earned a much larger amount (the total job amounts), rather than my actual earning of the 11% to 22% commission.
Since I intend to use this as an escrow account, what can we do to ensure that at year-end I will only get 1099 for what I actually earn as a business? Your help is greatly appreciated. |