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Lobby Financial Feast topic #466

Subject: "Major Delima" Previous topic | Next topic
heidiannWed Dec-19-07 05:12 PM
 
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"Major Delima"


          

;( My husband lost his job July 30, 2007. Fifteen days after moving to a new house, we have four (10, 4, 2, & 8m) kids and I stay home with them. He has been a commercial electrician for 20 years and moved up in the feild to PM and head of operations including head estimator. Needless to say, he is well rounded. I have excellent skills in administrative duties and have started my own business before (prior marriage)and also ran the office of an electrical contractor. Sooo, here we are, an L.L.C as of Oct. 5, 2007. My delima is this: we did not do a start up loan, we subcontracted to my brother who owns his own home improvement company and he is 1099ing us for the misc jobs we have done and has been paying us in my husband's name, which has been deposited in our personal account. Now that we are an L.L.C, I opened a business account and all checks that are made to our company go there. We also had to hire an employee who gets paid $600 under the table (I know, I know), he was hired Oct 18th. We pay everything out of our personal account then transfer the funds from our business account,if available, to cover. Our income as been sketchy, nothing consistant. In fact maybe $2000.00 this month, but we also got a big job that we will make $28,000 profit from and will get at the end of this month. My brother had to finance the materials for us and he will get paid $10,000. Anyways, I have not been able to pay taxes, our employee isn't paying taxes, every penny we make goes to personal debt (mortgage, bills, etc) and company expenses. Somehow we have made it this far, but I need advice if it will be okay to start "fresh" in January when I have some capitol and then start paying the income taxes and so forth. As for the past five months I haven't been able to do anything legit because I have had no idea what we were making from one week to the next, if anything, and every penny has been keeping our heads above water. Please advice, and would love to hear some horror stories that turned out to be okay. My husband is gone 18 hours a day, 7 days a week trying to make this work.

  

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PepperfireThu Jan-10-08 09:57 AM
 
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#1. "RE: Major Delima"
In response to Reply # 0


          

> My husband lost his job July 30, 2007. Fifteen days after
>moving to a new house, we have four (10, 4, 2, & 8m) kids
>and I stay home with them. He has been a commercial
>electrician for 20 years and moved up in the feild to PM and
>head of operations including head estimator. Needless to say,
>he is well rounded. I have excellent skills in administrative
>duties and have started my own business before (prior
>marriage)and also ran the office of an electrical contractor.
>Sooo, here we are, an L.L.C as of Oct. 5, 2007. My delima is
>this: we did not do a start up loan, we subcontracted to my
>brother who owns his own home improvement company and he is
>1099ing us for the misc jobs we have done and has been paying
>us in my husband's name, which has been deposited in our
>personal account. Now that we are an L.L.C, I opened a
>business account and all checks that are made to our company
>go there. We also had to hire an employee who gets paid $600
>under the table (I know, I know), he was hired Oct 18th. We
>pay everything out of our personal account then transfer the
>funds from our business account,if available, to cover. Our
>income as been sketchy, nothing consistant. In fact maybe
>$2000.00 this month, but we also got a big job that we will
>make $28,000 profit from and will get at the end of this
>month. My brother had to finance the materials for us and he
>will get paid $10,000. Anyways, I have not been able to pay
>taxes, our employee isn't paying taxes, every penny we make
>goes to personal debt (mortgage, bills, etc) and company
>expenses. Somehow we have made it this far, but I need advice
>if it will be okay to start "fresh" in January when
>I have some capitol and then start paying the income taxes and
>so forth. As for the past five months I haven't been able to
>do anything legit because I have had no idea what we were
>making from one week to the next, if anything, and every penny
>has been keeping our heads above water. Please advice, and
>would love to hear some horror stories that turned out to be
>okay. My husband is gone 18 hours a day, 7 days a week trying
>to make this work.

You don't really want to hear the horror stories, you want to hear the solutions.

You've put yourself into a vicious cycle and fortunately, you (believe) you will be in the position to get yourself out of it. What if the money doesn't materialize? How long do you pretend to yourself that you're going to get "honest" with the taxes???

Stop the cycle now... and get honest; even if you end up carrying a tax debt for the next 10 years, it's not as bad as getting nailed for tax evasion.

(I could be wrong, but doubt it). The amount you probably owe in taxes etc. is nowhere near enough for the IRS to bother coming after you, so, do yourself a favour and put the paperwork in order, even if you find you can't pay it right away, the IRS will work with you. You're not big enough for them to get rangy over.

Call them, tell them that you want to be above board and they'll help you get into line. But... do it before they come to you.

(The same is true for the CCRA).

Good luck.

T

Tina Brooks, VP Marketing
Brooks Pepperfire Foods, Inc.
Makers of Peppermaster Hot Sauces
http://www.peppermaster.com

Eat more peppers!

  

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