AboutCarlton Johnson, LPA, MFP, ABA Expertise Accounting for Small and Mid-sized Businesses
Bookkeeping - Setup and Maintenance
General Business Taxation
General Risk Management
Financial and Business Line Modeling
General Payroll
Employee vs. Independent Contractor Questions
Experience Concurrent Experience Includes:
9 Years in General Accounting
7 Years in Business Planning and Setup
6 Years in Financial Analysis and Modeling
Organizations Fellow of the Financial Academy of Financial Management
Education/Credentials Bachelor of Arts, Accounting, Morehouse College.
Licensed Public Accountant (PA), State of Delaware.
Master Financial Professional (MFP), American Academy of Financial Management
Accredited Business Accountant (ABA), Accreditation Council for Accountancy and Taxation
Question I was wondering if you were aware of a law that would allow single mom who own a business to pay their nanny through the company?
Let me know if you are aware of such - and if not then if you could guide me to someone or somewhere who could help me.
Thanks so much
Answer Hi Emily,
Paying your nanny through your company is not advisable. It violates the separation of you from your business. Additionally, it could later form the basis of allowing creditors and suing parties to access personal and business assets to satisfy any debt or judgment.
The best thing to do is take the money out through paying yourself a salary or do a return of capital (capital withdrawal) and place the funds into your personal account to ensure that it is you (and not your company) that is paying the nanny.
Thanks,
Carlton Johnson, LPA, MFP, ABA
Licensed Public Accountant
Master Financial Professional
Accredited Business Advisor
