Ppp sole proprietor reddit Please read the sidebar below for our rules. As of right now for sole proprietors there is no way to get around paying. Many (but not all) B2B accounts and banks will require an EIN to set up an account. The IRS is 1. In January 2020 I went full-time. As long as you filed as sole proprietor with YOUR name and that’s the name on the chime A friend of mine who missed the first round of PPP funding just recently asked for my help with a situation he has going on with FundingCircle and I was very surprised as to how they are Good morning, I received ppp loan in round 1 through kabbage. I was approved for $21,292, but I should have been approved for $20,0833 (the maximum amount for self-employed people), so I was approved for $459 more than I should have been approved for. But changes were made on March 3, 2021 that affected the PPP loan calculation process. I have not received a EIDL advance yet, but i am very relieved that i I am a sole proprietor with two W2 employees. It's not required but you can get one. Posted by u/rrhour - No votes and 11 comments Yes, as a sole prop, you can apply for both EIDL and PPP. I collected PUA up until end of July, the point where the $600 FEUC was dropping off. There is no 25% to account for or screw up. I took 40k of EIDL loan during COVID with no personal asset or collateral. Consult a tax professional about what is best for your situation. I have a million craft ideas I was thinking of making to sell on Etsy. I know that the PPP loan is forgivable View community ranking In the Top 1% of largest communities on Reddit Unemployment vs. PPP as sole proprietor LLC taxed as a sole proprietorship will not have a schedule C since they get "pay" via owner's draw. These There are 2 loan types - PPP which is the forgivable one if spent on paychecks (for you). My goal in the next 5 years is to open a franchise restaurant. Can I collect both? Here's the real question. With no lates under 2 years old. In my case, it was based off of my To calculate your PPP loan for sole proprietors amount, divide your gross revenue by 12 to get the figure for your average monthly income. PPP for Sole-Proprietorship, owners are now able to include themselves? I've been watching some videos and it looks like sole-proprietorships, which we are, can now include themselves into the PPP? It looks like you do the same, basically take your annual adjusted income When your PPP is funded, it is assumed a sole proprietor will use the money for himself and will be forgiven. I am a sole proprietor and applied to the PPP using my 2019 1040 schedule C. and International, Federal, State, or You still have to pay your CPP portion as an employee and employee regardless of the business type. PPP is through a bank (especially if you have a business relationship with one) or PayPal. * A sole proprietor may or may not have employees. People think LLCs give you some get out of jail free card, but if So for a sole-proprietor, assuming you were in business in 2019, the ideal documentation is your Profit or Loss from your 2019 personal taxes. I would recommend I have been calling everyday. And it isn’t a violation of PPP rules for a sole-proprietor to pay themself any particular amount at all. I am fine with that, it will definitely help. S. I run a small business (sole proprietorship) that has the potential for growth and I am wondering what my best bookkeeping platform would be. Thus, this thread. A friend of mine who missed the first round of PPP funding just recently asked for my help with a situation he has going on with FundingCircle and I was very surprised as to how they are handling the PPP loan. Sole proprietorship paying one-off help Never be a sole proprietor: if you get sued, they can go after your business assets AND all your personal assets too. I'm a sole proprietor, I don't have payroll, I will NOT be Why would they need to do that?? u/Mysterious-Singer627, as a sole proprietor you can take 100% of the amount as owner compensation immediately and it is 100% forgiveable. Have an email from SBA that your account is being reviewed to be put back to regular servicing. I’ll take a net loss on the sole proprietorship. I have used QuickBooks in the past and it was decent. This sub is not for advertisements! Questions and answers about starting, owning, and growing a I started my business as a part-time sole proprietor back in 2017. Divvy just It's perfectly legal as an independent contractor or self-employed individual. You cannot use non-employees in your sole proprietor business because they not I applied chase ppp on 4/05 and finally today i received an Email saying my ppp for 75k has been approved. In the past, paying myself has always been an informal process. 1102 PAYCHECK What you may not have known is that sole proprietors, independent contractors, and gig workers are also eligible for PPP. I'm a sole proprietor, no employees, trying to figure out the requirements. There are now two calculations depending on if you have payroll. Just received an email asking me to log in to their site and 1. The Proceeds of the PPP loan can be used on mortgage interest/rent payments/utility payments on business property only. We have a personal guarantee no matter what. A sole proprietor works just fine and depending on your level of income and liability, a sole proprietor is best. I had zero revenue for March and April. This sub is not for advertisements! Questions and answers about starting, owning, and growing a Business, Economics, and Finance. I understand that while my loan is for 2. So it’s good that anything charged in the business cards don’t count as utilization, also the cards won’t count as the 5/24 status (if you are into chase cards). If your business was structured as a sole prop. money might take longer to appear - and the next big question is how they will administer loan forgiveness for a sole-proprietor but we'll see how that goes. As a sole proprietor, you are a Y’all freaking out for no reason. I assume this means I’m getting a w-9 at the end of this year for the roughly $125,000 I made. Or check it out in the app stores PPP Loan, will payroll include items such as net income from business, dividends, pass through, etc? the sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a wage, commission, income, net I already set up a sole proprietorship (to get my GST #). No credit check. Sole proprietorship or incorporation? I am reluctant about incorporation because I read that I might get flagged as a PSB if I am the only employee with only one client. Is either one correct? Example loan amount of $20,833 based on max $100k income. The difference between the Economic Injury Disaster Loans and Paycheck Protection Program. This also allows you to use your PPP funds in one day if you are short of time to apply for 2nd draw. The process in NYS wasn’t difficult, and worth saving the money to DIY. Paycheck Protection Program- ‘7a’ or ‘PPP’ Loans (PPP) AND Economic Injury Disaster Assistance Loans (EIDL). 5x your average monthly payroll amount. The only real material difference as of now is that sole props need to have deducted the same type expense in the past - this is an easy way for them to document the legitimacy of the expense as a business expense. I am a sole proprietor with 2 employees. Amex gold has a great bonus offer now if that’s something you are looking for and don’t mind the annual fee and if you can spend 10k in three months. It is the only eligible expense not requiring proration or metering the expense (paying over time,). However, everything I can find online is either from last year or it's for businesses with employees. Reddit's main subreddit for videos. When lender deposited it will say “lender name + ppp” nothing in regards to sba. Who exactly does this There has been a tremendous amount of frustration by small business owners operating as sole proprietors and trying to obtain a Paycheck Protection Program (PPP) loan. To keep things simple, assume a sole proprietor received a $20,000 PPP loan based on the sole proprietorship earning $100,000 in 2019. and International, Federal, State, or local. Or check it out in the app stores PPP Loan, will payroll include items such as net income from business, dividends, pass through, etc? the sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a wage, commission, income, net yes I got this and then email as follows (screwed I think) Thank you for applying for the Paycheck Protection Program Loan through PayPal. 11/9 I believe. and International I'm looking into utilizing the Arise Platform to make some side money/ supplemental income. The IRS is experiencing significant and extended Reddit's home for tax geeks and taxpayers! News, discussion, policy, and law relating to any tax - U. Somehow I keep getting downvoted because truth hurts. Even if they provided updated guidance for those whose business started in 2020, it would still require positive net earnings (unless you have W2 employees). and You can put sole proprietorship, income $1000, pick a random name and you will get approved. Definitely the PPP loan conflicts with that, if you’re a sole proprietor. I had these funds deposited into my personal bank account at TD because I applied as a sole proprietor I started my business as a part-time sole proprietor back in 2017. Right, with the odd situation where for the Sole Proprietor they pocket the income without creating an event that would have been a deduction under normal circumstances. 1099 doc here, previously filed as a sole proprietor making about $400k/year all 1099. Or check it out in the app stores 1099 Sole Proprietor working for a business that will apply to PPP. PPP as sole proprietor View community ranking In the Top 1% of largest communities on Reddit. I checked the box "Sole Proprietor" on the web application. Sole proprietor in Mass. Don't post questions related to that here, please. I have a Paypal business account If you are the sole member of a LLC you're known as a disregarded entity in the eyes of the IRS and you are still taxed the same as a sole proprietorship. I'm in a similar boat. For example: if you make I was a technology consultant for many years (sold my practice ~four years ago). Members Online. Don’t be fooled by the name, though. I had these funds deposited into my personal bank account at TD because I applied as a sole proprietor If you are a sole proprietor, self-employed individual or independent contractor PPP Loan borrower, the provisions of this Agreement that provide for automatic payments from your business bank account to be the mandatory and sole method of No, as of now you need to have positive net earnings on your 2019 Schedule C for a sole proprietor to qualify. This is an update in regards to my PPP application from yesterday & last week. 7M subscribers in the smallbusiness community. However, I So 2018 was the first year I’ve been paid as a sole proprietor. My partner is a self-employed sole-proprietor who works with clients (yoga, massage, etc). How Posted by u/[Deleted Account] - 1 vote and 11 comments PAYPAL is the true HERO of my business/income (proof in post) - Sole Proprietor $80k/year PPP loan FINAL UPDATE. For a sole Proprietor, PPP is considered owners compensation which grants you automatic forgiveness for 2. As I have some money coming in from clients (varies week to week) I’m wondering if that further 15 votes, 44 comments. It is simply an owners draw. You would not receive a W-2. and made the next month's payment of 1935. The entire amount of the PPP loan (a maximum of 2. When reading Bank of America's website it seems as though businesses that are using 3508S form do not need to submit any documentation or the form itself. So here is a timeline: I applied the minute they opened the PPP for self-employed and contractors. litery 2 weeks later But going through this year, adding tools machines trucks etc. It also happened to be around the Get the Reddit app Scan this QR code to download the app now. Reply reply Reddit helped me set up a business, and I'm applying for a PPP loan, but I understand I can also apply for an EIDL loan simultaneously, so I've been looking into it. I'm a single member LLC that didn't hire employees until Jan 2020. Hi Everyone! Apologies if this has already been answered, I've been looking through this subreddit for a few days and haven't found a clue yet. As long as you filed as sole proprietor with YOUR name and that’s the name on the chime account it’ll go thru fine. The SBA has been unsuccessful in our attempts to LLC was formed Jan 21, 2020. On top of that, on PPP loans smaller than $50k, you don’t have to provide any documentation of use of funds — the forgiveness application just has a checkbox that you check to self-attest that you For the PPP, contractors were effectively considered sole proprietors in terms of using their 1099s for the year as a 1040 and thus any $$ paid to them was meant for their PPP loan, not the Band Owner. I have one as a sole proprietor, however, with an LLC but that shouldn’t matter. Now, self-employed If you are a sole proprietor and had your PPP forgiveness approved, RAISE YOUR HAND! What was the process like? Who is your lender? What documentation was needed? How long did We created a comprehensive, comprehensible guide all about PPP loan forgiveness for the self-employed, sole proprietors, and independent contractors. In this case, the PPP accounting rules allow the sole proprietor to use all of the $20,000 for Don’t be fooled by the name, though. Since the first fraud I uncovered was for a sole proprietor hairdresser that was allegedly earning $100K or more a year to qualify for the max PPP loan of $20,833 in an area that cannot support that level of income (plus more dubious information about that individual), I decided to focus my efforts in that area (sole proprietors, max PPP loan I'm not there yet, as my forgivable sole proprietor PPP loan was funded less than 2 months ago. Credit score minimum? Reddit iOS Reddit Android Reddit Premium About Reddit Advertise Blog Careers Press. The PPP uses line 31 (net profit) of your schedule C divided by 52 to determine a weekly payroll. 3M subscribers in the smallbusiness community. I calculated my loan request amount at a little over $20k. With an LLC, your personal assets are considered hands-off when it comes to business debt collection or other claims if your company is sued. You’re able to apply even if you do not actually pay payroll to yourself or have employees. But you may qualify for benefits in subsequent weeks considering that your PPP amount was $2100. " Also how do I spend the funds as a sole proprietor and ensure that I am in compliance for forgiveness. and obviously the shelter-in-place makes it impossible for her to work. Log In / Sign Up; Advertise on Reddit; Shop Collectible Avatars It seems confusing that all 3 options are on the PPP application and you need to choose one. We switched over to Telgorithm and get approved in like 24-48 hours (72 hours max) On my application, I marked that I am a sole proprietor with one employee--I should have written that I am a self-employed individual with 0 employees. Now, as I understand it, you can only use the PPP money and be forgiven if you use it for payroll incurred after the date you receive the money. GameStop Moderna Pfizer Johnson & Johnson AstraZeneca Walgreens Best Buy Novavax SpaceX Tesla. I applied with the streamline app on 3/30/2020. Follow the tutorial & apply with ALC. The IRS did say that any expense that was forgiven in a PPP loan could not be counted as an expense on 2020 taxes. overall PayPal application process was great. I’ll ask any other questions you guys have as they come if I wasn’t specific enough as I am asking on their behalf. This PPP And sole proprietorship is so confusing to me on what we can and cannot do. We applied within an an hour of the Chase contact form going live on Friday and again within 20-30 minutes of the real form going live on Monday. If you were approved for 20k last time as a sole proprietor, could you be approved for more with increased payroll? Reply I was approved for first PPP, my Sole Prop started in 12/2019. PPP & Intial EIDL loans approved/funded & PPP forgiven). In the latter case, the personal guarantee allows them to chase you. It's easy to set up and widely accepted by customers. * A sole proprietor can be a self-employed individual or an independent contractor. Once you’ve applied, send me a pm with your Sole proprietors, or those who file an IRS Form 1040 Schedule C, are able to apply and receive Paycheck Protection Program (“PPP”) funds. If not, get an umbrella property. 00 even though Line 31 was in excess of this amount. Last year, our group put out a new requirement that independent contractors must be incorporated as S corps. You can read it here. for a sole proprietor or independent contractor: wages, commissions, income, or net * A sole proprietorship is a business owned by one individual. As a sole proprietor the amount forgiven as payroll is set at 8/52 of your 2019 Schedule C line 31 (capped at $100k). or you had a large enough loan to require a personal guarantee, the Treasury will chase you and the business. This sub is not for advertisements! Questions and answers about starting, owning, and growing a According to the Federal Register from April 20, 2020 regarding PPP loans for sole-proprietors: "Congress also determined that the maximum amount of loan forgiveness is based on the borrower’s eligible payments—i. In the United States, a sole proprietorship is the most popular business entity because it is the View community ranking In the Top 1% of largest communities on Reddit Unemployment vs. I have not received a EIDL advance yet, but i am very relieved that i Allowing such a self-employed individual to treat the full amount of a PPP loan as net income would result in a windfall. Now, I just need to make sure that I do what is necessary to confirm/receive the Reddit iOS Reddit Android Reddit Premium About Reddit Advertise Blog Careers Press. I had applied to US Bank for PPP on 4/4. I am the sole-proprietor, sole-employee of the company, and the guidelines have not been very clear for those in my situation. Received various emails in the past few days and uploaded Sched C and P&L. 5 months based on schedule C and I’ll be forgiven for just 2 times my schedule C amount. As a general rule of thumb for myself since I haven't been here a year yet, I'm playing it safe and setting aside a large percent of my income as untouchable money that can only be used for paying those monthly and annual payments. AKA your schedule C. How does forgiveness application work if I get approved for second draw PPP before first draw PPP forgiveness request is submitted? A single-member LLC can choose to be taxed as a sole proprietorship or a corporation. There are several reliable payment processors available for sole proprietors. I haven’t heard anything about So a Sole Proprietor with no employees, filing a 2019 schedule C with $100k in net income, received roughly $21k in PPP money. I cannot afford to make any payments and my loan payment is due. If I were to choose QuickBooks should I choose QuickBooks Accounting or QuickBooks Self Employed? When starting out doing FBA for online arbitrage selling, what are the pros/cons to registering with Seller Central as Sole Proprietor (Individual) or as an LLC? Many "FBA course gurus" make it seem so simple that you can just register as an individual, however, I don't like the idea of my personal assets being at risk should I ever get sued by a buyer or merchant that does not like It seems confusing that all 3 options are on the PPP application and you need to choose one. As you might expect, for the first few years I paid quite a lot out-of-pocket for equipment and other startup expenses, resulting in quite a few depreciating assets. 1. Credit score minimum? 1. Although the PPP expired in August, Congress is in talks to renew the program in the While many small businesses were able to start applying for PPP loans on April 3, applications from the self-employed weren’t accepted until April 10. Discussion Can someone buy a computer use it as a write off? Use their office as a writeoff? And what other ways? Reddit's home for tax geeks and taxpayers! News, discussion, policy, and law relating to any tax - U. Submitted app 4/29 at 12:21am. Great advantage to operating as an entity (PLLC is preferred in my state of Texas) rather than sole proprietor. She explained that as a sole proprietor with no employees, the most income I could claim is $100,000. I knew they were limiting sole proprietors to 8/52nds of 2019 Schedule C profit, but the part where they limit S/C Corp owners to same is NEW and so depressing for those of us who got loans early and detrimentally relied on that only applying to sole prop's Allowing such a self-employed individual to treat the full amount of a PPP loan as net income would result in a windfall. I believe it was NavyFed that was very aggressive about the closures as a sole proprietor you're free to then ACH transfer it to your personal checking/savings. Not Eligible: The SBA has been unable to verify the existence of an eligible business as reflected in the application. In a sole proprietorship, there is How sole proprietor PPP loans are calculated. Received PPP money, which I'm using to pay myself weekly. Reddit is a powerful resource and we have the ability to influence a company’s optics for the way they have acted in this time Y’all freaking out for no reason. I don't want to go the IBO route or sign up under one so I'll be going in as a sole proprietor. In July 2020 I incorporated the business at my tax person's recommendation. And money has now been deposited. My understanding is that Square is giving Sole P‘s and IC’s only the payroll forgivable amount. May 6, I got $20k from the PPP which saved my butt for the next 2 months. It was simple and fast. So, I had to change my monthly payroll amount to $8,333 ($100k /12) which calculated a loan of $20,832. Terms & You will still be a sole proprietor, even if you have an LLC, if your LLC is a single-member LLC, unless you elect to be taxed as an S-corp, from what I understand, so the tax decision is Posted by u/tspree15 - 2 votes and 3 comments Posted by u/teachermmb - 4 votes and 18 comments Your question is confusing, because you have the categories mixed up. Owner Compensation Replacement What are good tax write offs for sole proprietors . You cannot use non-employees in your sole proprietor business because they not LLC was formed Jan 21, 2020. The SBA has been unsuccessful in our attempts to IMO - A sole proprietor would be an operator w/o a LLC. 5M subscribers in the smallbusiness community. From what I have submitted for the 2nd draw, it only allows you to From my understanding, Sole proprietors will get 1k for being a sole proprietor and 1k per each employee you listed. Class action lawsuit would be good if we can get that started. My loan amount with Square is 4,000 less than the SBA guildlines. Today 4/14 - Uploaded all the requested docs sole proprietor and have one loan I had from loan builder $3,500 paid it off in 2 months just a few weeks ago. We are all businesses Sole Proprietor-LLC: My PPP app was submitted in the first batch when there was little to go on. The IRS is experiencing A sole proprietorship is unable to be directly sold to another party as it is tied directly to your name, you'll need a pte ltd for that Overall sole proprietorship is really very cheap. How Johnny Harris Got I started my business as a sole proprietorship and then once I started making a reasonable amount ($100,000+ a year) I incorporated and switched all my seller account info over to the new business, which Amazon had no problem with. The IRS is experiencing significant and extended delays in processing How Sole Property PPP Tax Accounting Works. Posted by u/CCISME2020 - 1 vote and 1 comment. US Bank PPP application - some movement . You can make elections otherwise, Initially you probably don’t need an LLC, so your best bet is being a sole proprietor. You should dissolve one and register another. Skip to main content. , the sum of payroll costs and certain overhead expenses—over the eight-week period following the date of loan disbursement. 5 months worth of your net profit with 1. Sole Proprietor. So to make a long story short, you probably won't get unemployment for the week you get PPP funding. 5 (3. Yes, as a sole-proprietor and freelancer, you are in charge of setting aside money to pay off your income tax, hoken, nenkin, and other taxes yourself. TD BANK Account FROZEN over PPP!!!! I applied for a ppp loan in August as a sole proprietor through blue vine and I was approved for the max amount $20k. (They will ask you to include the EIDL granted amount on the PPP application) A sole prop technically does not have payroll, and that is not a requirement for PPP. The application was quick and easy. The IRS is experiencing significant and A community for Redditors who are tax professionals to discuss professional development, firm procedures, news, policy, software, AICPA/IRS changes, news/updates about law relating to any tax - U. Reddit iOS Reddit Android Reddit Premium About Reddit Advertise Blog Careers Press. There is no difference, tax-wise, between Today 4/14 - Uploaded all the requested docs sole proprietor and have one loan I had from loan builder $3,500 paid it off in 2 months just a few weeks ago. As a sole proprietor you could have a SEP IRA, but the solo 401k is superior in that your entity can 100% match you personal contribution thereby allowing you to place $50,000+ a year (provided your income is high enough) in a 401k that grows tax A SMLLC which has not elected corporate treatment is taxed exactly like a sole proprietorship. so if you make an extra $30k a year from this, its a part of your regular income. I signed up for one, they told me to call Amex. It hasn't been 8-24 weeks yet and I am looking to apply for the second draw PPP as well. You’re still considered a sole prop because you have a Schedule C. Unbelievably, even though there are more than 10 million self-employed freelancers, sole proprietors, solopreneurs, and independent contractors in the U. As such, I spent a very painful 8+ hours putting together paperwork to create a corporation, fax S corp forms to the IRS, opening a business bank account, etc. There has to be something fraudulent going on, I'm thinking they are letting this run so they can keep accrued interest on the loans. There is no EIN as a sole proprietor. PPP 1 + Sole Proprietor Loan Forgiveness Questions . So depressed about the SBA's forgiveness guidelines/forms that came out today. I'm expecting to only get 3k for the grant. Crypto You will still be a sole proprietor, even if you have an LLC, if your LLC is a single-member LLC, unless you elect to be taxed as an S-corp, from what I understand, so the tax decision is between being taxed as a Schedule C sole proprietor (even while having an LLC) and being taxed as an S-corp. If you were approved based on your Schedule C from 2019 as a sole proprietor with no employees, the amount you should pay yourself, and the amount forgiven, is: the PPP loan “payroll” and forgiveness doesn’t have anything to do with what you’re earning right now if your loan amount was based on 2019’s Schedule C. Posted by u/claudius850 - 4 votes and 30 comments For the PPP, contractors were effectively considered sole proprietors in terms of using their 1099s for the year as a 1040 and thus any $$ paid to them was meant for their PPP loan, not the Band Owner. The IRS is experiencing A Sole Proprietorship and a Corporation are different forms of business, therefore you can't transfer from one to another. Sole Proprietors Receive a Draw, Not a Paycheck. If I opt for 24 weeks that spreads my ppp loan of $1200 over 24 weeks to say $50 a week. I read this: "Loan forgiveness is available if the sole proprietor spends 75 percent of the loan proceeds on payroll costs and 25 percent on things such as mortgage, rent and utilities. 5. Just haven't heard anything yet. He gets to keep the whole $21k personally, as Go Sole Proprietor and just make sure your insurance covers you, preferably $1-$2M liability. (the application process was ridiculously easy) View community ranking In the Top 1% of largest communities on Reddit. It's "hobby" vs "sole prop/LLC". I’m a sole proprietor. So I have been making weekly payments to get all caught up and calling Posted by u/Mightnotmight - No votes and 4 comments I have over $200000 EIDL loan ($950 a month) $50000 micro sba loan ($850 a month) $20000 ppp loan and that was forgiven $36000 lendingpoint loan($890 a month) I have a full time job Posted by u/Redrocket2239 - 2 votes and 7 comments To qualify for a PPP loan, self-employed individuals must meet the following criteria: You were in operation as of February 15, 2020; You are an independent contractor, One of the most important decisions you’ll have to make when starting a new business is whether a limited liability company (LLC) or sole proprietorship is a better fit for your company. I could not get any good guidance on what to do, so I tried applying only for my 2020 w2 payroll (which only covers my employees not my personal owner draws). Moral of the story: follow up and don’t take no for an answer! Now my question is: is it possible to The person applied for $20,833, the max for a sole proprietor making more than 100k on last years, and Square lowered the loan to $15,385. When you apply for an EIN, you can check sole prop or LLC, but not both. In my state/city the order of I'm using the logic behind the PPP to support my choice. If you have an EIN you're going to register on 10DLC as a normal Brand, if you don't have EIN then you can go Sole Prop route, but registration with Twilio, at least what I've heard, is taking weeks. 5 times monthly payroll costs) would be forgiven even though Congress designed this program to limit forgiveness to certain eligible expenses incurred in an eight-week covered period. Sole proprietor, existing business account with them. In general though - sole prop, SMLLC and IC all file on Sch C and all have SE income on bottom of Sch C, so there isn't much difference between the 3. Get the Reddit app Scan this QR code to download the app now Yes you can get the second round of ppp loan , I got the first ppp loan with kabbage, it applies to sole proprietor and self employed people as well just send your tax form not sure why people said no All of us are sole Proprietors or something. Chase has a good one as well. I have been approved for my PPP loan. e. " Reddit's home for tax geeks and taxpayers! News, discussion, policy, and law relating to any tax - U. that's the only reason I say what I say. As I have some money coming in from clients (varies week to week) I’m wondering if that further No, as of now you need to have positive net earnings on your 2019 Schedule C for a sole proprietor to qualify. I know they're going to want documents when this is over, so I need something to show I paid myself. I hope that makes sense. They will look at your provided 2019 Schedule C to confirm that these Is using Schedule C Line 31 actually the lawful way to determine payroll costs for a sole proprietor or self employed individual? The Law that was passed reads as: "Sec. The bank where I have my business checking has an online application process where uploading a copy of Schedule C was the hardest part. ” This sub-reddit is an english language friendly discussion forum focusing on life for living in Bangkok, as well as any other Bangkok related Posted by u/Sythic_ - 3 votes and 7 comments Look up "solo 401k". , they were not even eligible Can you get a PPP loan without a business? The Paycheck Protection Program (PPP) is still in effect, but businesses must apply for eligible funding by May 31, 2021. The rep asked what my business is, and I said “ebay. Can me applying for PPP potentially harm their loan or forgivess amount? So, for PPP, you borrow 2. Related Topics Business Business, Economics Get the Reddit app Scan this QR code to download the app now. Check that dashboard. I think the min score with Amex is 690. From what I understand, the EIDL amount will be rolled up into whatever amount is approved for PPP. The Small Business Administration issued guidance for sole proprietors on April 20, 2020. Question is, is there any difference between sole proprietor and incorporated when it comes down to business write offs? I don't intend to own a clinic or employees. I’ll personally see to it that the bank knows your situation & processes the application. If a business operates under sole proprietor who has w2 employees but the owner themselves is not on the payroll as an employee how would they be included in the calculation for the ppp loan amount? We use a payroll company so I was able to get the necessary info from there for the w2 employees but the 2019 business tax return is not completed yet so I do not have the net If the sole proprietorship LLC had a negative income in 2019, how can the owner get a loan through PPP? One of my parents owns a company and is wondering this. To pay yourself, you would write a check to yourself with the memo "draw. I'm currently on PUA. Background: I was self-employed/sole proprietor worked as a beach Wedding Coordinator/Planner. Chase 2nd Round PPP Denied (Sole prop) First round was mostly painless, but I just got denied for these reasons: I moved to Nevada and closed my sole proprietorship bank account with Chase and opened a new one as a LLC at the It was especially difficult because 1. . Also, check if the name you want is still available. I have read tons of replies saying after paying in full what is owed it still went to treasury. This is for an 8 week period I received a PPP loan for less than $50,000 so. In taking this approach, Square has made the loans automatically forgivable. View community ranking In the Top 1% of largest communities on Reddit. Open menu Open navigation Go to Reddit Home Open navigation Go to Reddit Home Hi all, I just received my PPP from paypal and I was wondering how the loan forgiveness procedure will be for someone in my position. so my bank instructed me to use gross income from Reddit iOS Reddit Android Reddit Premium About Reddit Advertise Blog Careers Press. Method 1: $100k My client sent in PayPal PPP application 2 days ago and signed the Docusign contract today. This sub is not for advertisements! Questions and answers about starting, owning, and growing a Posted by u/Tealandgray - 2 votes and 23 comments Expand user menu Open settings menu. 5 I quoted some of their information below from the site: "Ease and Costs of Formation. Got PPP. Either way super happy and grateful for you all. I do this Everyone has limitation on the 25%, many non-sole props also won't have the ability to get 100% forgiven. Denied EIDL Increase, Sole Proprietor, SBA switched application in my personal name, have sent documents since 3/21. litery 2 weeks later The form that sole proprietors use to file their tax return is T2125 Any amount paid as a lease on your commercial rental unit (could) qualify as an eligible business expense. I know so many people who have gotten it from chime perfectly fine. The PPP loan is designed to be eight weeks of compensation for a self-employed individual. The first will make you a sole proprietorship LLC (which is what I chose earlier this year). Here are some of the top options: PayPal: PayPal is a widely recognized and trusted payment processor that offers various solutions for sole proprietors, including online payments, invoicing, and mobile payments. They're not trying to set a trap for accidental fraud. 6M subscribers in the smallbusiness community. Sole Proprietor LLC forgiveness on PPP loan . If you intend to permanently change the relationship go ahead - but if you are doing it just to use the PPP funds you are wading into dangerous waters both with regards to View community ranking In the Top 1% of largest communities on Reddit. You cannot 'pay' yourself more and increase the forgiveness amount - your Schedule C that you submitted with your application serves as the documentation, no need for more of a paper trail. ” It’s a bit unclear to me if they are saying it’s fine if you do have those expenses that you can use the 25% like that or that only 75% is forgivable. This sub is not for advertisements! Questions and answers about starting, owning, and growing a The simplest forgiveness for sole proprietor, no employee businesses is to opt for 100% owner compensation. I am a solo LLC with one W2 employee and pay all health benefits. I'm a self employed sole proprietor that will get a small $1200 PPP loan. Last year I was paid $48,000 as a W-2 employee, so this is entirely different to me and I’m trying to figure out what I roughly am going to owe in taxes. My two banks don’t do it unless we already have an established business relationship. To summarize, sole proprietors can use the PPP funds as follows: 1. Anything coming Posted by u/wsbgodly123 - 1 vote and 4 comments How should we fill out SBA PPP loan forgiveness form? - Reddit true I am a sole proprietor with no employees. If he is an employee he should be W2 at all times, if he is a legitimate contractor he isn't your employee. Posted by u/ednamillion99 - 10 votes and 30 comments I'm applying for a PPP loan, but I understand I can also apply for an EIDL loan simultaneously, so I've been looking into it. I know for a fact you have to declare PPP income when you submit your unemployment claim each week. With a sole proprietor, though, the tax accounting works differently. I'm self-employed and 2. When can I start using it for payroll for my employees and keep the forgiveness? How do I pay myself properly to keep the forgiveness? View community ranking In the Top 1% of largest communities on Reddit. The IRS is experiencing significant and extended delays in processing - everything. Previously, sole proprietors were able to apply for a PPP loan using their 2019 or 2020 net income as reported on a Schedule C. * All business income and expenses are reported on the individual's federal income tax return. Before I speak to an accountant I would like a better sense of understanding of what I am getting myself into. This sub is not for advertisements! Questions and answers about starting Here is a question for the PPP Loan(supposedly it will be in my account in 3-6 business days; believe it when I see it). At the time of the application, I was using the standard Denied EIDL Increase, Sole Proprietor, SBA switched application in my personal name, have sent documents since 3/21. IMPORTANT: A sole proprietor may have only one EIN Thanks for everyone's info! I've been an independent contractor (healthcare) since 2018, have filed and have schedule C for each year. Aren’t independent contractors also sole proprietors? If they see your LLC is in actuality a sole proprietorship in court, you will be required to pay as if it were one, regardless if you LLC'd or not. Your business income Yes, it will hit your personal credit if you default. I have a Paypal business account for 5 years now. As a sole proprietor in MN, if you are going to do business under any other name than your full personal Sole Proprietor: Is an extension of yourself, basically just legitimizing your side gig. I have a lot of experience with virtual customer service work and plan on working nights (6PM til midnight). As a sole proprietor my paycheck is actually the company profit. Here we will answer common Last year, self-employed individuals who conducted their business without any employees could qualify for a Paycheck Protection Program (PPP) loan in an amount equal to Starting on April 3, 2020, PPP loans officially became available to small business owners (including sole proprietors) through SBA-accredited lenders. She just takes payments from clients, sometimes writes invoices and whatever money is left in her account at the end of the month is "Schedule C net income. Then, multiply that number by 2. Without this oversight, the same thing WILL happen again. Now What? I had actually given up on it, then it showed up in my bank account. it seems like I should be using form 3508S. Allowing such a self-employed individual to treat the full amount of a PPP loan as net income would result in a windfall. I just got approved for First Draw PPP based on my 2019 gross income on Schedule C. It isn't "hobby/sole proprietor", vs "LLC". I included in my app: Schedule C, Schedules 940/941 and payroll documents. PPP for Sole-Proprietorship, owners are now able to include themselves? I've been watching some videos and it looks like sole-proprietorships, which we are, can now include themselves into the PPP? It looks like you do the same, basically take your annual adjusted income Reddit iOS Reddit Android Reddit Premium About Reddit Advertise Embed Go to EIDLPPP r/EIDLPPP • by jsb151. For payroll verification I provided my Profit and Loss Statement from Quickbooks Get the Reddit app Scan this QR code to download the app now. In calculating the maximum loan for the PPP, has anyone seen a scenario for a sole proprietor who has employees? Would the sole proprietor be able to include up to $100k of net s/e income as a payroll cost, in addition to the employee payroll costs incurred? How would the scenario differ for a partnership? From what I can see, the guidance Get the word out to every news agency on the planet except ONA and FOX please. Posted by u/Redrocket2239 - 2 votes and 7 comments I applied chase ppp on 4/05 and finally today i received an Email saying my ppp for 75k has been approved. Just got approved for the PPP 1 loan. McConnell is trying to push through CARES ACT 2 "RE-Fund" WITHOUT the oversight which is needed to ensure the money actually goes to all our micro, truly small businesses and sole-proprietorships. The amount of the PPP loan was computed using your 2019 Schedule C line 31, divided by 12, times 2. at the minimum do get that set up, but really advisable to start off immediately with a pte ltd especially if you forsee your business growing well. Saw a lot of people get their accounts closed when the PPP loans started going out. I just got called by my bank with some questions, and I had to explain the situation since I don't have a 940/941 form on taxes. BBP (and other amex business cards) don’t show up in personal credit reports unless you are default. I am a sole proprietor with Then surprisingly I was called by a woman from Chase very late afternoon on Thursday. We are all businesses I just received my wire from Paypal. I moved to landlocked state and cannot find any job that pays the same. You’re able to apply even if you do not actually One of the more confusing aspects of the Paycheck Protection Program (PPP) is how to apply for a PPP loan if you are self-employed, including if you are a 1099 contractor or gig worker. I was a sole proprietor initially but moved to an LLC pretty early on. It’ll be fine y’all. I am a restaurant owner with gross revenue of 850k with 10 employees (part time mostly). I was thinking of starting off as a Sole Proprietorship for the This subreddit has been very helpful for sharing PPP information so I wanted to contribute my latest update. I’m a sole proprietor and I have secured my PPP loan fortunately. I am in the same situation made a lump sum of 15650 payment to get my loan current. The Paycheck Protection Program loan calculator (PPP loan calculator) is a tool that allows you to find out how much money you are eligible to borrow to ameliorate the adverse economic effect on your business and employees caused by the COVID-19 crisis. I hear about all these other lenders like PPP and lendio but don’t know how that would even work. Sole proprietors and independent contractors are finding the PPP loan especially appealing because of the "owner compensation share" or "owner compensation replacement" concept that can grant them full forgiveness, letting them use Over the past year, the SBA has rolled out a series of updates and adjustments to better serve the self-employed who need/want a Paycheck Protection Program (PPP) loan. Main advantages included limiting my Sole proprietor here; my business has completely halted due to covid but I will have some payments coming in for past work performed in February. Reddit's home for tax geeks and taxpayers! News, discussion, policy, and law relating to any tax - U. Stage 2 Chase PPP denied (sole proprietor) Anyone else just get a sudden deny from Chase? Sole proprietor submitting 2019 Tax return. In the former case, they can chase you personally because a sole proprietor is the business. Aren’t independent contractors also sole proprietors? Reddit iOS Reddit Android Reddit Premium About Reddit Advertise Blog Careers Press. The PPP loan program was created to provide economic Keep seeing two different methods on calculating loan forgiveness for Sole Proprietors. Hopefully some of you get approved, but it feels like no bank cares about sole proprietors. In most cases, creditors can't touch your home, car, or personal bank accounts. they want 1099s, schedule C, driver's license, 1 bank statement and the simple 1. I'm a Schedule C sole proprietor, no employees. 2 months with zero income then the PPP loan would qualify as a 30% decline. So according to the rules, just need to show them Q2 or Q3 revenue, showing a 30% decline in revenue. I can’t even figure out the best lender. However, I would recommend talking with an accountant. 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