Structuring is a method used to deposit large amount of cash into a bank account over time. Banks are required to notify the IRS when cash deposit is over $10,000.00.
It’s only illegal if you made the intent to deposit cash under $10,000.00 over a period of time to not get notice to be review for making large amount of cash deposit.
The purpose of this law is to stop illegal activities that make money and try to launder the money under companies that operate on a cash basis.
Example of companies that are cash basis instead of accrual are convenient stores, laundromats, or companies that decided to only handle cash transaction.
If your company get paid over $10,000.00 with one single payment. You will need to file for form 8300 to the IRS.
It is suggested to file form 8300 within 24 hours to the IRS to not get into a dispute of accusation for structuring.
The IRS can seize your money without arresting you, charging you, and being found not guiltily. Getting your money will be hard to get especially as a small business owner.
A shell company is structure as a legally business on paper to be seen legitimate even though there is no workers or job sites were business is conducted.
A shell company usually holds banking accounts or assets like investments and tangible assets. Most of the time a shell company is used to hold funds for anonymous entity.
The only reason a person would want to start a shell company is for startup that are raising funds before operation are implemented.
Shell Company are sometimes used to avoid taxes or hid assets from it true owners from the public, which, is illegal to do in some cases. It can also be used for money laundry for illegal schemes.
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