Posts by Kimberly Harris6

Raymond Martinez10 said:Not really—and honestly, I don't see the issue here. What law is being broken? 🤷

I don't know... I'm just repeating what I was told. But if we’re going to be pedantic about it, then practically no business could function without employees, right? Everywhere you look, a CEO is authorized to represent the company, not to handle every single operational task themselves. It’s all nonsense. I guess we’ll find out the hard way when an IRS auditor or a state inspector actually shows up at someone's door.🙂

Raymond Martinez10 said:That answer doesn't sit right with me at all. There are hundreds of companies across the US with zero employees generating massive revenue—it would be impossible if a CEO was strictly limited to "representation" without performing actual duties.
BTW—I know a firm right here in the States that handles all its accounting without having a single employee on the payroll. 😉

I don't know... maybe they'll get away with it for now. Has there even been an audit or an inspection yet?

Grace Ruiz12 said:Everywhere I turn, when I ask what specific business activities I can actually run under an LLC with no employees, people just give me these vague, non-committal answers that don't help at all, so I'm turning to you guys instead. If a woman works in accounting for another company and decides to launch her own bookkeeping firm—acting as both the owner and the director, but without being technically listed as an employee of her own LLC—is it possible for her to take on clients for bookkeeping services while she isn't officially on the payroll, perhaps just as a temporary setup until the business picks up enough steam to justify her transitioning over completely?
I'm looking for a straight answer here..

I actually called Microsoft to ask about this, and the advisor told me that if she’s also the CEO, it wouldn't fly. Since a CEO is authorized to represent the company, they aren't strictly just there for bookkeeping tasks, so if an auditor showed up, it wouldn't pass inspection. Basically, according to the consultant, you’d need to actually hire someone in the company if you're going to be processing paperwork for clients..

vividbadger71 said:Hey there,

So, here’s the deal. A buddy and I are looking at launching a business next year—basically a full-service cleaning and landscaping outfit, both inside and out. It’ll just be the two of us to start, though who knows where we'll be in a few years. Since we’re planning to register the business under a pretty broad category of services, I wanted to see if there's any wiggle room regarding the bookkeeping. Specifically, if we register under accounting services, could my wife handle all the books for us? She’s got the degree and some extra certifications, so it seems like a solid way to save some cash—professional accountants can get pretty pricey. Also, quick question about the setup: if we launch this together, does one of us have to officially be the CEO? If that’s the case, it would probably be him, since I’m planning to stick with my current 9-to-5 for a bit until we build up a steady client base. If we’re both founders, but he’s the only one listed as the director—meaning I wouldn't be "on the payroll" until things really pick up—would he just be paying his own payroll taxes and social security? I'm honestly a little fuzzy on how that logistics side works. Thanks in advance for the help! Cheers

To have internal bookkeeping, you don't need to be registered as an accounting firm; you just need to employ an accountant. As for the CEO situation, the company can list a responsible officer or director in its official filings, provided they are technically employed somewhere. Whether they are employed by your specific company or working elsewhere doesn't matter. However, if they aren't officially "employed" in a way that qualifies for standard benefits/contributions, they'd have to pay those high self-employment taxes, which usually isn't worth the hassle. Furthermore, the person listed as the director in the corporate registry doesn't strictly have to hold a dedicated position within your firm; they can be employed in another role for which they are qualified, as long as they are actually performing that work.

http://www.usa.gov/business

Timothy Morgan38 said:Oh, thanks a million... so, full name followed by the company name, then my Social Security number, right?

Thanks... now I get to go bury the IRS in paperwork...😂

Why don't you try digging through the IRS website yourself? You can actually see all the mismatched forms they send out. They really love making things complicated for the sake of "compliance."😉

Timothy Morgan38 said:Quick question regarding power of attorney...

I have my certificate from USA Swimming naming me as the authorized representative for my firm... so, since I’ll be the one handing in the paperwork on behalf of my clients, when I fill out the proxy form, do I list my company and its EIN, or do I list myself as the authorized individual along with my own SSN???

Any help would be appreciated. The "overly helpful" lady on the IRS helpline didn't exactly have a spare second to assist me...

You are the proxy, so you list your own details because you're the one signing everything electronically. You can just add your company name after your name—that's how we handle it—and it clears without an issue every single time.

James Patel2 said:To pull tax cards for previous years, you have to set the listing date to December 31st of the year you need. For example, use 12/31/2010, then 12/31/2009, and so on. Every prior year closes out on January 1st and rolls over as either a debt or an overpayment, which is why you have to list them this way. The IRS e-file system is efficient because you can generate forms directly from accounting software and upload them straight to the portal. Additionally, a single firm using one digital certificate can manage all their clients through the electronic system... all they need to submit to the IRS is the client's power of attorney and the specific e-file authorization for that individual. ☕

I can't believe this... I just tried doing that again, but it’s still not working. It clearly says:
It’s impossible to search for the Klan during that specific timeframe. You can only run a search for the current year or the previous one. Why is the system set up this way?

So, none of that matters then...

Raymond Martinez10 said:Ask the agent at the FBI to pull those files so you can finally get the full picture

We already tried asking, but they just brushed us off, claiming everything was fine and that her colleague would handle pulling them. They basically told us we could check back whenever we happen to be heading that way for something else...

Patrick Peterson49 said:So, if an audit ever pops up, what actually counts as proof that I filed my forms through the IRS portal? Is it just that instant receipt you get right after hitting submit, or do I have to wait until they actually process everything... do you guys usually print out those submission confirmations or nah? 😕

I always print my submission confirmations, and they’ve always been sufficient for me. Usually, all the forms eventually get processed and logged, but honestly, why is my status still showing up this way? I was looking at my account again yesterday... one form is still listed as "pending" from April 27, 2010, and another is stuck as "pending" from April 29, 2011. Why bother stressing over it? I have the confirmation that it was sent, the taxes are paid, and the estimated payments are handled. I don't see how anyone could penalize me at this point.

Raymond Martinez10 said:This is spot on. Until the clerk actually processes the entry, nothing moves—and from what I can tell, if they don't get to it within a certain window, the whole thing glitches and you have to start over.
The ledger doesn't reflect anything until the clerk "finalizes" the posting. I once sat around waiting for my state tax credits to clear for over a month because of this exact nonsense.

I’m dealing with a total mess right now. A clerk hasn't processed our City Hall forms from back in 2009 and 2010. Because of that, the tourism board is still being billed under their subscription because all the payments—both the liabilities and the deposits—went through, but the actual credits haven't been applied to the account. We even tried physically bringing the City Hall forms and the printouts from the IRS website showing they were "pending processing," only for the woman behind the desk to tell us, "Oh, you don't need to hand those in. It's fine." Then she adds that her colleague just hasn't cleared the digital files yet... so what am I supposed to do with that? She wouldn't even take the physical copies we brought! And keep in mind, we actually went down there a few months ago just to give them a heads-up.

Timothy Morgan38 said:Sixty whole days of waiting... and I bet they’ll drop the official guidelines at 11:45 PM on the 59th day. 🙂

Can anyone clarify how far back we can go when opening a card for an individual tax account? Are we limited to January 1st of this year, or can we look further back into previous years?

I’ve been looking into this for my clients, mostly backtracking through this year starting from January 1st, 2010. Anything prior to that hasn't worked for me... but you might want to give it a shot and see.

Timothy Morgan38 said:Since there’s clearly enough interest here to warrant a dedicated space, I’ve split these posts into their own thread. It should make things a lot easier to follow...

Moderator lili p.

Does anyone know if you can actually file a DOH form—or basically any final tax return for sole proprietors—through the IRS online portal?

While I’m sitting here waiting for my new security key from the bank to arrive in the mail, I’ve been digging through the IRS digital filing manuals... and I honestly can't find a single option for small business owners to submit their returns online.

Just to clarify: since the rule change on January 1st, does everyone making over $800,000 have to use the electronic filing system, or is that strictly for corporate income tax filers?

As of right now, you can't file a Schedule C through the IRS site. You can handle sales tax, excise tax, and various other business filings there, but nothing for those specific year-end forms... unless they decide to update the system soon.

Looks like the gears are finally turning...🙂

I have to say, our entrepreneurship forum... lately, it’s been absolutely buzzing with great questions and even better, more useful answers. It looks like everyone is finally back from summer vacation... hats off to you all. Keep it up.

Nathan Campbell4 said:Sorry in advance if I'm being lazy here—I’m sure the answer is already out there somewhere, but I just can't be bothered to hunt for it myself.
So, I'm looking into starting an LLC. My plan is to be the sole owner, but I'd hire someone else to serve as the CEO/Director, and then I'd probably have two other employees on board. Since I already have a full-time job, is it actually possible to keep my current position without any issues? Also, if I'm listed as the owner, who takes the fall if the business goes belly up—me or the director? And regarding fines from inspections—whether it's something minor like smoking in a non-smoking area or something much more serious—would I be held liable, or would that responsibility fall on the director instead?

Thanks so much!

A legal entity is the company; the responsible party is the director.

wearyraven41 said:Hey everyone,

I'm trying to figure out what the monthly overhead looks like for an LLC if the business isn't actually doing anything at all. What kind of drain am I looking at?

We’ve already touched on this in the forums if you want to dig through the archives for more details, but let’s be real: you have to account for those monthly maintenance fees on your checking account. Why does anyone think a basic bank account comes for free? $6.75$55.00 for the U.S. Chamber of Commerce membership? That’s what they want us to pay just for the privilege of existing? Honestly, that would be a steal if they actually did anything of value. But let's be real—if they aren't actually working for us, why are we even footing the bill? I feel like I'm forgetting something here, but I can't quite put my finger on it.

Joshua Howard said:And how exactly is that supposed to help me? I don't have a crystal ball😁

Besides that, I included everything I could think of that I might one day want to do, but here we are... I've officially started chasing the impossible.😁

Look, I get it. I really do. But at the end of the day, there’s no way around it: you just have to pay up.

Joshua Howard said:Are we talking just about the re-registration, or the whole package?
They're really taking him for a ride.😁

It’s always better to include as much as possible during the initial registration. Why bother later when making changes usually ends up being incredibly expensive?

Joshua Howard said:Does anyone know how long this whole re-registration process actually drags on if you use a notary public?

And what's the standard procedure for adding a new board member or director to the books?

It's probably best to check directly with a notary.

Charles Howard74 said:Hey, I could really use some insight here if anyone knows the deal.
So, my LLC isn't currently set up for this specific line of business. But, out of nowhere, I landed a massive gig involving Export, and we’ve already hammered out all the terms and I've actually started working. The first shipment is slated for about 20 days from now, but let's be real—with how slow things move with the government here in the States, there's zero chance I'll get my business registration updated by then.
Am I asking for trouble if I send an invoice and file the Export paperwork for a foreign client when my registered activity doesn't technically cover it?

What kind of legal headaches am I looking at for my LLC?

Thanks!

You can technically start performing the activity on the day you actually file the request for re-registration—you don't necessarily have to wait for the official approval to come through. So, if you submit the application now, you shouldn't be in violation of any laws, provided you meet all the other standard requirements for that line of work. As for the consequences? There will definitely be a fine, though I couldn't tell you exactly how much.
You should probably take a look at something like the Uniform Commercial Code or relevant federal trade regulations to find the specific clause you're worried about.