Let me start off by saying i might have a mess on my hands and need advice on how to clean up before filing for my accountant.
I started an LLC this year in the sales industry. It has two members, myself and my fiancé. If i remember correctly I'm a 98% and she's 2%.
We both have w-2 jobs. I brought on about 7 or 8 1099 sales reps. Business was good for most of the year. I think for this year total income was about 300k maybe a little more.
I paid out contractors with company checks. Kept good track of that. Here's where it starts to get messy. Ok keep in mind i've never owned a business, started an llc based upon advice of someone who ran a similar business. Didn't know rules etc and just started reading up a little since end of year is coming up. I just was wrapped up with trying to profit.
My fiancé and I have a joint personal Credit card that we have been using for business expenses including entertaining, traveling to expos to promote and grow business, hotels, expos, food and all that comes with traveling for business. As money came into the business i started paying off the credit card from the business account since we were using the card for business expenses. (now i realize that probably shouldn't have been done after doing some reading). We also used the business account to pay off some older debts.
I have kept terrible records of expenses. Almost all receipts are gone, they were lost at some point during our massive house cleaning as we are prepping to sell our house. So they may still turn up but they're gone. I thought the business was doing great but after adding up all the expenses for traveling, driving, paying for expos, its way less than i had expected. So with the numbers that i calculated income was around 300k (after paying contractors) and deductions were around 200K.
with the remaining profits do i have to pay out myself and my fiancé? if so how much should i pay? Business has slowed down tremendously now at the end of the year. What are your recommendations from this point on to help clean this up? I've never been audited, don't want to, how do i avoid it? I'm concerned about that because of my loss of receipts. I have no problem paying taxes on the 100k that we made this year, i wish i had more taxes to pay cause that would mean we would have made more money! But i want to avoid any trouble and definitely need to learn how to keep track of everything for next year! ANY HELP would be appreciated. Feel free to private message me if that's an option on here.
Thank you!
Sincerely
Unexperienced, learning by error business owner!
I started an LLC this year in the sales industry. It has two members, myself and my fiancé. If i remember correctly I'm a 98% and she's 2%.
We both have w-2 jobs. I brought on about 7 or 8 1099 sales reps. Business was good for most of the year. I think for this year total income was about 300k maybe a little more.
I paid out contractors with company checks. Kept good track of that. Here's where it starts to get messy. Ok keep in mind i've never owned a business, started an llc based upon advice of someone who ran a similar business. Didn't know rules etc and just started reading up a little since end of year is coming up. I just was wrapped up with trying to profit.
My fiancé and I have a joint personal Credit card that we have been using for business expenses including entertaining, traveling to expos to promote and grow business, hotels, expos, food and all that comes with traveling for business. As money came into the business i started paying off the credit card from the business account since we were using the card for business expenses. (now i realize that probably shouldn't have been done after doing some reading). We also used the business account to pay off some older debts.
I have kept terrible records of expenses. Almost all receipts are gone, they were lost at some point during our massive house cleaning as we are prepping to sell our house. So they may still turn up but they're gone. I thought the business was doing great but after adding up all the expenses for traveling, driving, paying for expos, its way less than i had expected. So with the numbers that i calculated income was around 300k (after paying contractors) and deductions were around 200K.
with the remaining profits do i have to pay out myself and my fiancé? if so how much should i pay? Business has slowed down tremendously now at the end of the year. What are your recommendations from this point on to help clean this up? I've never been audited, don't want to, how do i avoid it? I'm concerned about that because of my loss of receipts. I have no problem paying taxes on the 100k that we made this year, i wish i had more taxes to pay cause that would mean we would have made more money! But i want to avoid any trouble and definitely need to learn how to keep track of everything for next year! ANY HELP would be appreciated. Feel free to private message me if that's an option on here.
Thank you!
Sincerely
Unexperienced, learning by error business owner!
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