Small Business Owners Thread
- Thread starter Aychamo BanBan
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Intrinsic
Person of Whiteness
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Yeah, I've reached out to my accountant and advisor also. I mean I get that there's some banking / financial regulations related to transaction amounts and whatnot. It didn't come off as unique to that bank, but that's also a reason for my question. I'll see what the other people have to say also before responding.
This is from Wave, for what it is worth. And their product has been great for keeping my accounting and generating invoices. I've got everything running out of there pretty smoothly.
This is from Wave, for what it is worth. And their product has been great for keeping my accounting and generating invoices. I've got everything running out of there pretty smoothly.
Sanrith Descartes
Veteran of a thousand threadban wars
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Assuming you have an accountant, let him/her/they handle this for you. Its what you pay them for. If the bank is asking, it "could" be due to IRS prompts.
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Intrinsic
Person of Whiteness
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Yep, agreed. He has the email I received and is reviewing it for me.
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Sanrith Descartes
Veteran of a thousand threadban wars
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The type of entity your company is can also make a difference. Sole-proprietorships/LLCs are disregarded entities in the eyes of the IRS so it all flows to your 1040 via the schedule C. So flushing cash between business and personal accounts isn't a "huge" deal. S-Corps and C-Corps are not disregarded entities so cash flowing from business to personal accounts is something else entirely.
i had to deal with something like that when i started taking credit cards 2 years ago.
i use Square as my CC processor and after having it for 2 weeks, i got "audited" and money xfer was shut down until the audit was done due to them asking wtf i was selling since -at that time- the average charge was over 2000.00 per transaction-i figure they were making sure i wasn't laundering money.
My company does Land Survey/Civil Engineering services, the lowest charge i have done- except for when for some reason square was not working on my computer (my adblocker was blocking transactions from being made) was 200 dollars. the highest i have done is 5000, but on average it is 1750 thru 2600 per charge i do.
so i had to answer questions like above.
like how do you know that person is who they say they are. do you ask for an ID?
what is the typical amount you will charge a client
things of that nature.
so far this year. my average charge is 1750.00 and if the trend of what people are paying by cc for my firm continues, i will probably come close to 175k in CC payments by the end of the year, almost 50% more than last year CC payments were -last yr- between a quarter and a third of all payments.
i use Square as my CC processor and after having it for 2 weeks, i got "audited" and money xfer was shut down until the audit was done due to them asking wtf i was selling since -at that time- the average charge was over 2000.00 per transaction-i figure they were making sure i wasn't laundering money.
My company does Land Survey/Civil Engineering services, the lowest charge i have done- except for when for some reason square was not working on my computer (my adblocker was blocking transactions from being made) was 200 dollars. the highest i have done is 5000, but on average it is 1750 thru 2600 per charge i do.
so i had to answer questions like above.
like how do you know that person is who they say they are. do you ask for an ID?
what is the typical amount you will charge a client
things of that nature.
so far this year. my average charge is 1750.00 and if the trend of what people are paying by cc for my firm continues, i will probably come close to 175k in CC payments by the end of the year, almost 50% more than last year CC payments were -last yr- between a quarter and a third of all payments.
Kiroy
Marine Biologist
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we're an llc filing as an s-corp and i'm pretty sure it's all still considered pass through income, we just get taxed less on whatever is not our salary (so still disregarded but s-corp benefits maybe?) - my accountant takes care of it but that's my understanding
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Intrinsic
Person of Whiteness
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Yes, that is how it has been explained to me and put in to practice through my payroll.
Through payroll I go ahead and take out everything for both the Employer and Employee side. So my Fed 941, State 941 all come out, my Employer Social Security and Employer Medicare, then my FUTA/940 and SUTA all come out. Since it all goes in to and comes out of the same account (the one generating these questions), I just clear what is left over in to my money market account.
Since I didn't get this all worked out until May of 2023 I am paying more b/c it is coming out looking like only 8 months in the year. Next year that'll go down monthly since it'll be set up for all 12.
I think it won't be an issue moving forward. Mainly what happened was that business account had accrued every cent the business made since last year. For Oct, Nov, and December 2022 when I made the shift to 1099 from W-2, I had already paid enough taxes through my previous employer (+a small estimated quarterly tax for Q4), that I owed virtually nothing on all the 1099 income. Then, it took Jan, Feb, March, April to get the S-Corp established, payroll set up, and a few other things so that was 4 more months of money going in.
So now I've got 6 months or so of paid invoices. Now that all the taxes are caught up I was moving >$30k at a time in multiple instances, while still having invoices paid by the client. Moving forward it'll be less plus all the payroll taxes will be auto withdrawn. So maybe not throw any / as many flags.
We'll see if tomorrow they respond to answers to any of my questions.
Falstaff
Ahn'Qiraj Raider
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If ((Client)) is some unique non-standard name there is a 99% chance this is some AML/KYC thing.
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Intrinsic
Person of Whiteness
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For what it is worth, a couple of updates:
- It was Wave asking for the information, not the bank.
- I responded to their questions basically stating that "it is for business purposes and payments for invoices generated using your service."
- Lastly, told them my contract between my client and my business was none of theirs.
They said okay thanks, that works for us.
- It was Wave asking for the information, not the bank.
- I responded to their questions basically stating that "it is for business purposes and payments for invoices generated using your service."
- Lastly, told them my contract between my client and my business was none of theirs.
They said okay thanks, that works for us.
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