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dpb dpb is offline
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Default How to pay contractor, who to make check out to?

RicodJour wrote:
On Jun 20, 9:49 am, dpb wrote:
So they're a sole proprietorship dba "XYZ Construction" -- why ask for
the check made to them personally when if they're paying business taxes
it's all on their 1040? (Simple answer -- to avoid paying SE tax FICA
and possibly state/local sales taxes as well depending on locality).

I'm w/ the basic tenet of the work was done by the individual
representing himself as a business, so the payment should go to the
business. My first choice would be to write the check to the business
per business letterhead, second to write the personal check but send the
1099.

I pay my SE taxes, da--'d if I'm going to abet someone else in escaping
their obligations...


Hell, why stop there? Just because the guy completed work to your
satisfaction, why should you pay him at all? There are plenty of ways
to beat up on a small contractor, which this guy obviously is, so why
not go the whole enchilada? It was smart to make sure all of the work
was completed before asking any questions and clarifying your
agreement - that way you can claim ignorance and sleep at night.
Nifong him entirely - report him to the IRS and see if you can collect
some blood money for turning him in.

The time to clarify _all_ business arrangements is _before_ the guy
starts work. If you have a problem paying to an individual, then say
so before entering into a contract.


BTW, we know exactly zilch about the OP's situation and even less
about the contractor's. So what's this about him "representing
himself as a business"? That's implying fraud and you have no idea,
just guesses.


Not from OP's initial post I don't think there's a question he presents
himself as a business since his invoice had a business letterhead and
the request for personal payment was _handwritten_ at the bottom. I
would therefore expect him to _be_ a business as that represents...

....

NB: This was half to you DPB and half to the OP. It was half
sarcastic in nature. If either of you got offended, I was talking to
the _other_ guy!



I get three halves out of that...

You're entitled to your opinion, but I am also self-employed and have to
deal w/ all it entails so I don't think it all unreasonable to expect
others to do the same...

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