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business accounts?
I’m not in real estate. I am an employee. Can I put my money into a business account without having an actual business and get better tax benefits
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No. In order to open a business account you need a FIEN (federal employer identification number) from the IRS. This makes you a legal business to the bank. You also have to provide the bank with the businesses "article of incorporation."
john I just create an entity? So I can get an FIEN number?
However, the advisor I've used told me that you have to be careful with an entity because the IRS has a "hobby" rule. The rule has something to do with: profits, taking a draw, and deductions.
Thanks john
btw sk a tax advisor, before incorporating. Different states have different rules too.
hmm okay john thanks for help