What are the tax implications to opening a business account, then taking out a large amount to pay income tax?
December 17, 2008
lookingforanswers asked:
I have a large check that I would like to use to open my new business account. I have not made any income in this business yet. Part of that large check needs to be used to pay my income tax liability. Will there be any negative tax liability from doing this?
I was able to get the check split into 2. Now I can leave it alone.
Problem solved.
Thanks though.
I have a large check that I would like to use to open my new business account. I have not made any income in this business yet. Part of that large check needs to be used to pay my income tax liability. Will there be any negative tax liability from doing this?
I was able to get the check split into 2. Now I can leave it alone.
Problem solved.
Thanks though.
One Response to “What are the tax implications to opening a business account, then taking out a large amount to pay income tax?”
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December 20th, 2008 at 1:04 pm
While there is no tax liability, comingling funds for business and personal use in one account is NEVER a good idea and doing it on day 1 is rather naive.