The Wild and Whacky Scrapping Adventures of MattyNoNeck

Originally Posted by mthomasdev

Matty,

If you do this, get some purchase order or invoice slips that you fill out and have him sign. Consider getting a business checking account so that yo ucan give him his share in a check. By doing this, you will have everything documented at tax time. IRS can't say "well you sold $XXX at Weitsmans, where is your proof that you bought this or had a business arangment with Joe Shmoe."

Already got the invoices. As for a checking account, it may have to be a "business" account in the sense that it just happens to be separate from my normal one. If I remember correct, one needs an EIN to set up business bank accounts, or am I wrong there?

Check into "Doing business as" or DBA with your tax person. I'm not REALLY clear on the particulars; But as far as I know, DBA gives you a tad more protection/isolation at tax time, etc.