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Curious though: if I give a lot of money to a friend, don't I have to somehow report this to the IRS or something? And when he goes on to buy this stuff, doesn'
by pasxizeis 8y ago
Curious though: if I give a lot of money to a friend, don't I have to somehow report this to the IRS or something? And when he goes on to buy this stuff, doesn't he have to report somehow where all this money came from?
- ptr 8y agoSure, you need invoices. But I don't think this is illegal with respect to the IRS. Though if your friend doesn't have $10 million in his LLC, then your friend will become insolvent and that might be illegal. On the other hand, if you net your invoices regularly, then maybe the time spent being insolvent is short. IANAA.
- jeremyjh 8y agoBusinesses only pay taxes on net earnings, not on gross revenues. As long as you both do not show a profit you won't have tax liability.
- SmellyGeekBoy 8y agoBusinesses still need to report all revenue, even if they're only taxed on the profit.