Which Type of Joint Bank Account For Our Corporation?
For real estate leasing, my company collaborates with another company. Because I work as a real estate broker, I accept rent, and the other corporation will manage the funds, pay the bills, and pay the salaries through the same account. How do we avoid 100% of the tax implications falling on me because we'll both be on the account?No, you won't be able to do it; neither the IRS nor the bank will allow it. It's called "mingling funds." The company that collects the rent will have to write a check for "Management Services" to the management company.
It's also against GAAP, or Generally Accepted Accounting Principles.
Two corporations necessitate two sets of books as well as two tax returns.
You can be an officer of the other company without having any ownership if all you do is accept the rent. This would enable you to collect rent and deposit it into the management company's bank account.