FTPhil
Level 3

I understand that, "Your own Sole Prop entity cannot pay you through payroll and W2 by law."  I can however "hire" or "Pay" a company such as ADP to do this for me. I am NOT "Paying" or giving "Myself" a W2, ADP would be.

I have asked ADP and a couple of others if this was possible as a sole proprietor, and they ALL say yes, just pay them the money and give them the links to the accounts. They withhold taxes and pay me - granted from my own account to another of my own accounts, but it is run through them, who if I needed it, I could get health insurance and a SEP IRA going etc.

That being said, would there be any "Benefit" tax wise to run it this way? Most likely, I would run the FA biz through the payroll Co. and the Tax Biz as business income/ Scd C.

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