How to pay contractor, who to make check out to?

company.

neighbor so I

Make it out to John Smith and then put the companies business name in the Memo. That's what I would do.

Cheri

Reply to
Cheri
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That's because that's how most individual dentists list themselves professionally and do business under that name. At one time I went to a consortium and they collected all payments under the name of the consortium.

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Reply to
dpb

Let's flip this around. I'm sure you've received checks from customers/clients/friends that were drawn on their business' account, and whatever the transaction was, it wasn't a "real" business expense. Do you refuse the check? Do you get all huffy because they're looking for a deduction?

R
Reply to
RicodJour

Only if he tries to get me to poay him off the books. Fair is fair.

Reply to
Abe

I fail to see the connection to the situation to which I responded to Cheri w/ the subject of "receiving" vis a vis "writing" but so be it.

You may be "sure" that has happened, but I honestly can't think of an occasion/incident.

Don't know why you're so intent on riding me on this unless it's to assuage your own conscience, but I stated what I would do on the question of _writing_ the check and my reasons therefore.

That we have a difference of opinion seems apparent and further jousting pointless (and futile)...

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Reply to
dpb

And I agree, because avoiding paying his fair share of income taxes means the hohorable tax payers have to pay more than their fair share.

I think anyone stupid enough to either brag about their cheating on taxes or who asks for payment in a way which makes you suspect he is doing so.....deserves any "dissing" he gets.

It might not just be taxes though, perhaps he's got judgements against his business for not paying bills and is trying to avoid having your payment grabbed for those.

Jeff

Reply to
Jeff Wisnia

The sign on my office wall reads:

"There is no right way to do the wrong thing"

Jeff

Reply to
Jeff Wisnia

How do you know there was a contract with the company?

You are making as assumption. The OP mentioned the INVOICE had a company name, not on a contract. It may have been a verbal agreement to that point.

Pay in cash, get a receipt.

Reply to
Edwin Pawlowski

Care to extrapolate beyond reason any more, or are you done? Hell, the guy could be a mass murderer and he'll be using the money to fund terrorism! Police! Police!

We're talking about a business arrangement. I am not in charge of running anyone else's life other than my own. I don't want to be your nanny, your mother, your guardian, your judge and jury, or anything else. I expect to be treated squarely, and I'll do the same with you. I expect you to talk to me. If you have special requests, let me know what they are beforehand. If you mess with me, I'll smack you down. I'm very good at that.

I do my due diligence before I hire someone. I'll know before I sign anything if there are judgments and other complaints. I don't guess as to someone's motivation and how they handle their finances. I simply protect my own interests. I'm very good at that, too.

Some may want to play cop. That's fine. They're free to handle their affairs any way they want. If I don't like the arrangement, I won't sign on.

BTW, I've never met an "honorable" tax payer. Every single one I've ever met has felt that they are paying too much in taxes. Haven't met one that decided they weren't getting taxed enough and sent extra money in to make up the difference. That's what an honorable tax payer would do, right?

If you want to feel you're not paying any more in taxes than you have to, you don't go running around beating up on little guys, you work the proper channels and let your opinion be known on the _huge_ amounts of wasteful government spending. How many one-man-band contractors would you need to bust to equal one hour of the war in Iraq? How about tax breaks and windfall profits for Big Oil, Halliburton (still love their briefcases), etc.?

R
Reply to
RicodJour

Two wrongs still don't make a right, do they?

Jeff

Reply to
Jeff Wisnia

it's called lets make a deal!

I think contractors should be compelled to show each customer where the money went

fritos beer fried chicken WHAT? YOU HAD FRITOS ON MY MONEY? WHAT?!? I CAN'T BELIEVE IT!!!???

Reply to
wheat germ

Now how someone can pretend to know the law in all states and areas is beyone me. Here in NJ, if you buy a piece of furniture in NC, you are responsible for paying the tax, even though you bought it out of state. And yes, they have gone after people.

Reply to
trader4

I guess you never heard of or refuse to acknowlegdge what a sole proprietorship is about.

Oh, please. Like after you pay the guy, with a check made out to him, he's going to come back and claim he was never paid? Get real!

Reply to
trader4

I tend to write check to the same "entity" I record on the contract agreement. If it's John Smith I signed the contract with I pay John Smith, if it's ABC Construction I pay ABC Construction. I make it very clear on the contract agreement whether I am dealing with "John Smith" or "John Smith of ABC Construction" so my recommendation is to review your contract.

MC

Reply to
MiamiCuse

In NY, there's a line on your personal income tax return where you enter the amount of the tax on all of your out-of-state purchases. It's on the honor system for all items except autos. For those, you need to pay the sales tax to register the car. If you bought the car from an individual (or out of state), the County Clerk collects the tax when you register it.

Reply to
Pat

Oh and all contractors are honorable, ethical and trustworthy. I write the check to the company I contracted with. If in the initial negotiation he asks me to pay him cash or make out a check to another entity or him personally, at that point I want ironclad receipts for payment for the job with the permit numbers or numbers written on the receipt. "In God We Trust"

Reply to
jerryl

I always negotiate the deal based on a "cash" price.

I peel off the hundred dollar bills, and he produces a signed receipt - I'm covered, and I don't care what he reports to the IRS.

Reply to
Bob (but not THAT Bob)

I don't like specifying these reasons. It implies that if you didn't have permit issues, you'd cooperate in his tax evasion.

Even if you would cheat on your own taxes, you're only one person. Why encourage it in other people, when there are millions of them?

Reply to
mm

No. Why would you say that? An honorable tax payer figures out what his taxes are supposed to be, according to the rules, taking advantage of tax breaks that apply to him, as the IRS encourages people to do, and he pays that amount.

There is no need to pay more, although I think a few people do and I know a lot of people leave money to the federal and state goverments when they die.

IF you thought a particular tax break was immoral, that would be an argument for not taking advantage of it, but for no special reason to pay more than the properly figured amount is, that is not required to be honorable.

Reply to
mm

No.

The distinction you're missing is between tax *avoidance* and tax

*evasion*. If you feel you're paying too much in taxes, you can act within the law to avoid taxes -- find legitimate deductions, change your investment strategies, defer income, etc. That's all legal and honorable conduct, it's obeying the letter and the spirit of the law.

Tax *evasion* is when you cross the line and commit fraud or other crimes to avoid paying taxes. That's no longer legal or honorable, it is willfully violating the letter and the spirit of the law.

Reply to
<josh

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