Hot Business Tips » Personal Income Tax http://hotbusinessonline.info Businesses in a Box? I Don't Think So! Sun, 21 Mar 2010 04:23:05 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 How do I retroactively transfer personal income to my new business? http://hotbusinessonline.info/how-do-i-retroactively-transfer-personal-income-to-my-new-business/168/ http://hotbusinessonline.info/how-do-i-retroactively-transfer-personal-income-to-my-new-business/168/#comments Sun, 26 Oct 2008 16:39:56 +0000 admin http://hotbusinessonline.info/how-do-i-retroactively-transfer-personal-income-to-my-new-business/168/
Matt asked:


I am about to start a new business entity (probably an LLC), but I have already been earning income (intended for this business) under my name and personal bank account, since the LLC has not been formed yet and I do not have a business bank acount yet.

I will probably be filing IRS Form 8832 so that the LLC is taxed like a corporation, and can seperate my personal income tax from my business income tax.

Can I transfer income related to the business that i personally received before starting the LLC into the LLC so that the business would be taxed on it, and it would not be applicable towards my personal tax? How would this be done?

The income was received within the 2006 tax year, so I’m assuming i may need to start the LLC within 2006 as well?

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