One LLC/one bank account but two "businesses"
Tim_G
Member Posts: 2
I have a California LLC for my day job (consulting). I am building a web-based membership site as well. I do not want to create another LLC because I don't want to pay the $800 minimum tax again, so I'm going to operate the online business as a DBA under the LLC.
Within Wave, do I need to have open (and pay for) a separate bank account for the online business or can I use my existing account and then somehow attribute the deposits and expenses independently to the two different businesses? I want my reports, income statements, etc, to be separate so I can see how each business is doing. Is that possible in Wave?
And then there's the tax issue for how to account for the two, but that's another question...
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@Tim_G,
If you want to track the activity separately then you should have 2 bank accounts. Once for each. I would set up another business under your profile for the web based membership. Wave cannot generate an income statement based upon lines of business, cost centers etc. So the only way to see separate income statements is to have 2 business profiles under your owner account. I would think since you have not created another LLC, the activity would be reported as you have in the past on form 568. You would just combine the two income statements and balance sheets to report your totals.
@Mikeg
Thanks, I kind of figured that would be the answer. One problem is that I have already spent money out of the consulting account to purchase things for the new business so I'll have to somehow account for that. I also have to figure out how to start the consulting business accounting in Wave as I'm abandoning Quickbooks. (Sick of them forcing upgrades every couple of years if you want to keep your Mac operating system up-to-date.)
@Tim_G,
You could either handle one of two ways. Set up a due to/from or through owners drawings. The due to/from affiliate would mean you would code your expenses to the due to/from affiliate instead of the income statement. The receiving entity would do the opposite and create a journal entry debiting the expenses and crediting the due to/from affiliate. Going through owners draw would be the second way. Coding the expenses as owners draw. The the new entity you would create the journal entry debiting expenses and crediting owner contribution. Under the first option when you combine you would combine to due to from because they should net to zero. One owing the same amount the other has a receivable.