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    5 Replies Latest reply on Aug 3, 2015 5:10 PM by palmerpa

    Too much cash

    palmerpa Adventurer

      I would like some advice on how to balance my taxes as an entrepreneur. I just formed my LLC from a sole proprietor. I also have my EIN. After 5 years of making just under $10,000 per year I'm ready to file my taxes. I did go to the IRS and was told since I had been under $10,000 per year and did not have a EIN I was o.k.

      My problem is that I have well over $50,000 in cash and I want to open a business account without being penalized or under any scrutiny of tax evasion.

      My taxes for this year are do December 31. How can I inject this cash into my company.

        • Re: Too much cash
          Moderator Cath Guide

          Perhaps now is the time to make an appointment with an accountant and ask for professional help?  You do not want to make mistakes when you file your taxes and have to redo them or possibly face fines.

           

          Does anyone want to jump in here and give palmerpa some of your expertise? 

           

          Cath

            • Re: Too much cash
              palmerpa Adventurer

              Would you refer an accountant that I could consult with, or perhaps BA has some advisors on what I should do.

              I was thinking about purchasing equipment with the extra money and using that as an asset.

                • Re: Too much cash
                  SBC Team Guide

                  Hi Palmerpa,

                   

                  I would suggest talking with someone at your local Bank of America branch.  Some branches have dedicated Small Business Bankers who should be able to answer many of your questions and provide guidance.  You might want to call ahead to schedule an appointment, so you don't have a wait at the branch.

                   

                  I think a face-to-face meeting with someone would be very helpful to you.  If they can't help you at the branch, they can probably recommend a quality professional to refer you to.

                   

                  Also, when you say "$50,000 in cash", I hope you mean in a bank account somewhere.  You definitely don't want to be sitting on $50,000 in actual cash.  Too many things can go wrong there.

                   

                  Best of luck,

                   

                  Small Business Community (SBC) Team

              • Re: Too much cash
                proqyr inc. Adventurer

                Since you likely already paid taxes on this revenue as a sole proprietor, you should have no trouble moving it to your business as a personal investment in a new enterprise. The only way that I see that you might have issues is that if this income was cash receipts and no taxes have been paid to date on it. If that is the case, you should consult a qualified accountant as soon as possible.