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wicked357

DBA still a 1099 or no

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I was wondering if I file a DBA do I still get a 1099 from a company I offer services to, or is it treated like a company and its own entity? I hope that is clear enough.

 

Scenario:

 

Wicked's Workshop is a construction company filed as a DBA for John Smith.

 

Someone contracts me to build their house.

 

After the job is over I invoice them for the work done as Wicked's Workshop.

 

I put his in my business bank account registered under Wicked's Workshop.

 

This money is taxable... Do I expect a 1099 (My guess is no, but need to be sure).

 

When I file my taxes do I file for myself and for the DBA? (My thoughts is yes for both).

 

How would I go about giving myself money? Do I pay myself in the form of a paycheck?

 

Thanks for any help on this.

Edited by wicked250

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There are several relationships being mentioned here. Also, this is pretty clearly taxes in the US, that's something important to specify since there are people on the site from around the globe.

 

When one company hires or contracts with someone to do a job -- either a contractor or a contracting business -- and the transaction is for more than $600, the company is supposed to file an annual tax form 1099-MISC with the IRS and send a copy to the company/person they contracted with.

 

The independent contractor or small business owner should receive a copy of the 1099-MISC. Even if the contractor/company does not get a copy, they should assume the money was reported to the IRS for tax purposes.

 

In all cases you need to make sure you pay your taxes as required by law.  There are many free resources, contact your local SBA office or state tax office for free help, or a professional tax preparation company if you need help beyond that.

 

 

When it comes to annual taxes, there are at least two additional tax forms you probably need to use:

 

If you have your own small business or DBA, those funds should be reported on the schedule C ("Profit or Loss from Business"). This form gives you the opportunity to subtract the costs of doing business from your revenue, so you are only working on the difference. Schedule C has you enter all the income, but also lets you reduce that by the cost of goods, advertising, equipment, and so on.  

 

If you earned funds that did not go through regular employment taxes you will need to file Schedule SE ("Self Employment Tax").  This form should be used for any income that didn't go through employment taxes. Lawn mowing, babysitting, neighborhood piano lessons, commissioned artwork, custom computer programs, whatever else you can think of. Most people use the profit/loss from your DBA business from Schedule C on the form rather than the raw income alone since it allows you to subtract your expenses.

 

For most of us who do side-business contract work it is typical to file both forms with personal income taxes.

 

Your state, county, city, or other local tax agencies may require additional forms. Check with your local tax professionals for more details.

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You should probably seek professional advice. That said, the long and short of it is that you should expect a 1099-MISC and the money will be taxed as personal income on a single tax return. Remember, DBA is an alias for you personally. It makes no difference which account the money lives in, and the concept of paying yourself from the DBA is nonsense. You seem to think that maybe a DBA is some kind of LLC-lite and it absolutely isn't. It is not even a separate entity. The DBA just says: "dear IRS, sometimes I'm Bob and sometimes I'm Dave, but they're both me so don't separate the two."

 

Note for the future that the core identifying value is your tax ID number, which in the case of a DBA is your social security number. A separate return requires a separate tax ID, which in turn involves a somewhat elaborate registration process.

Edited by Promit

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Thank you guys so much. I think I got the answers I needed even if I wasn't as clear. Also I have contacted a CPA so the path taken isn't the wrong one.

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Rockland is a DBA sole-proprietorship. back when i used to do my own taxes, a schedule C, a schedule SE, and the usual tax return were all that was required. the line was something like "other income (attach schedule C)".   you and your company are one fiscal entity for purposes of taxes (and everything else including liability).   then there's state sales and use tax, including paying sales tax on out of state purchases (in some cases).  and that's about it.  ask your CPA about running on a "cash basis". you can also get into tax writeoffs for equipment, and equipment depreciation, and partial wrietoffs for equipment used for both work and personal stuff, as well as writeoffs for home office space (in some cases).

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