asked

A taxpayer formed an LLC in GA and elected S-Corp status on January 18, 2021. They received payment for jobs but did not open a separate business checking account until October. Prior to October, all business income and expenses were run through their personal checking account. For purposes of the 1120S, will all income received since the business formation be reported there or will the income received prior to the business checking account go on a Sch C on their 1040? Does it matter that they didn't have a separate business bank account the whole time? Additionally, some 1099s are coming in using the taxpayer's social security number rather than the business EIN. Can he report the 1099 income in his SS# as revenue on the 1120S or does he need to report those funds as Sch C income?

April 11th, 2024

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