Ask HN: I was hit with a patent troll lawsuit, how do I deal with it?
I'm a one person company and have no idea what to do.
I'm a one person company and have no idea what to do.
1. I capitalized the LLC with $2,100 (mostly to avoid Chase fees) and want pay myself back. Should I account for this as a simple loan and transfer it back? So it's not counted as income.
2. I filed the LLC in Nov to give myself time to open up all the accounts and stuff and was careful not to do any "business" for the remainder of the year under the new LLC, hoping to avoid filing a return (I will only file my personal return for 2020). Is that correct? In form 2553 I entered the effective date as Jan 1 2021.
3. How do I distribute extra earnings outside of Payroll? I can simply transfer the money between my Chase accounts, right... the important thing is how to account for that dividend on both form 1120S and my personal return? I am careful to only pay my payroll through Gusto.
I know y'all will say hire an accountant or whatever, but I've managed pretty well doing this stuff myself. I was CLOSE to doing EFTPS payroll payments myself... but Gusto (so far) is money well spent ($25/mo).
Any suggestions? I've tried Envato, but there's a lot of crap to sift through, and the templates are usually too busy.
Up to 2015, I operated a credit card merchant account (First Data) where I would process event ticket sales on behalf of clients, and ACH transfer them their funds. Of the money processed, perhaps 3% is income. I no longer do this model (for many reasons) and use Stripe instead.
Naturally, First data sent me a 1099 saying I made a bunch of money. IRS knows that. I don't report 1099's on my returns directly, because I have an accounting system that includes all of that income.
So clearly, I can explain to a layman why this money is not income, but what is the proper way to respond to this letter and prove it, hopefully avoiding an audit?
Thanks.