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<p>[QUOTE=&quot;NorthKorea, post: 1862423, member: 29643&quot;]I think a big thing being missed in the responses is hubris. Tim already filed for an EIN/TIN for his business, so he should have already used that number to set up the checking account. Based upon his previous posts, it&#039;s entirely possible that he:</p><p><br /></p><p>A) Doesn&#039;t have the capital to open a business checking account.</p><p>B) Is blocked by ChexSystems from opening any new accounts.</p><p>C) Has a different reason.</p><p><br /></p><p>Whatever the reason may be, he&#039;s made it clear by asking if it&#039;s okay to use his personal checks for the business that he intends to use his personal checks for the business unless someone clearly shows him that it&#039;s illegal.</p><p><br /></p><p>He also asked if it would be okay to write-off coin purchases he makes for his own collection against his business. Obviously, this is his plan, and he might already be doing it.</p><p><br /></p><p>All that said, here are my opinions:</p><p><br /></p><p>1) No, you can&#039;t write-off coin purchases. Inventory is considered an asset until it is divested from your books. You can deduct the cost basis of inventory from the final sale to calculate your net profit (different in Hawaii, since we&#039;re required to pay taxes on the gross sales, not net sales, at the business level), if your state allows it. However, you can&#039;t write off product inventory as a cost, since you&#039;re not consuming it. Additionally, if you start co-mingling your personal assets with your business assets (exactly what you&#039;re planning on doing or have already done), it&#039;s unlikely that you would be protected by corporation status anyway, but verify that with a corporate attorney. Then, after that meeting, ask the same exact question to a tax attorney. Unless BOTH say it&#039;s okay (and you hire one as your attorney), odds are you&#039;d be viewed as a sole proprietor regardless of what status you claim for the business.</p><p><br /></p><p>2) Quarterly reporting... Read:</p><p><a href="http://www.irs.gov/publications/p505/index.html" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.irs.gov/publications/p505/index.html" rel="nofollow">http://www.irs.gov/publications/p505/index.html</a></p><p><a href="http://www.irs.gov/publications/p334/index.html" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.irs.gov/publications/p334/index.html" rel="nofollow">http://www.irs.gov/publications/p334/index.html</a></p><p>Then read:</p><p><a href="http://www.irs.gov/pub/irs-pdf/f1040es.pdf" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.irs.gov/pub/irs-pdf/f1040es.pdf" rel="nofollow">http://www.irs.gov/pub/irs-pdf/f1040es.pdf</a></p><p><a href="http://www.revenue.state.il.us/Businesses/" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.revenue.state.il.us/Businesses/" rel="nofollow">http://www.revenue.state.il.us/Businesses/</a></p><p>Then look at:</p><p><a href="http://www.illinois.gov/dceo/Pages/default.aspx" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.illinois.gov/dceo/Pages/default.aspx" rel="nofollow">http://www.illinois.gov/dceo/Pages/default.aspx</a></p><p><br /></p><p>Your state has terrific resources available online for the exact questions you&#039;re asking here. Go check with them.[/QUOTE]</p><p><br /></p>

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