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    mrg01's Avatar
    mrg01 Posts: 1, Reputation: 1
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    #1

    Jan 10, 2008, 03:30 PM
    Handling Customer Payment Made to Partner Rather Than to the Business
    My question involves an LLC with multiple partners. One of the partners worked out a deal with a customer to provide some training services for the customer. The customer has made their check out to the partner rather than to the business. We believe the customer will end up sending the partner a 1099 but the partner is wanting to put this in the business account and considers it income for the business. Should the partner just sign the check over to the business and have the business deposit in the business account and record the payment as if it was received directly from the customer to the business or does the partner need to deposit in his personal account and then write a check to the business? What is the best thing to do so that this doesn't look like personal income to the partner and is accurately reflected in the LLC's books as income for the business? What needs to be done to ensure proper tax treatment for the LLC and the partner?

    Thanks.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Jan 10, 2008, 04:00 PM
    The partner should have been clear with the company who was doing the work, him as a individual or the company, Plus there would or should have been invoices and a receipt form the company for the payment.

    If it is a business income it is depoisted into the business account. Perhaps a request for a new check to be issued would be better.
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