My friend and I are both sole-proprietors renting a retail space together. We make clothing, art, jewelry. We already have separate business licenses for the new address and filed a DBA for the store name together as a joint venture. (We realize some of this may change) We are only splitting rent and operating costs, but want to create a seamless experience for our customer. This means we'd like to share one POS system, but all of our POS options only allow one bank account to be attached. The bank requires a Tax ID for a joint venture. This has us lost with the following questions
- Do we need to create a new entity for the IRS or only the purpose of acquiring a single bank account?
- Is it possible for one owner to be the account holder and the other owner as a signer, without the holder being taxed for all retail sales? In other words can some money coming into the account be recognized by the IRS as someone else's income if everything is laid out in a contract?
- If one owner decides to handle all of the retail finances and bill/pay the other owner, how difficult would the transfer be if the former decides to leave the retail space?
We hesitate to create a new entity for the following reasons
- For example, The retail space may only be open for 2 years and may create headache in dissolving
- Additional fees?
- Joint Venture seems to describe what we want but looks like it is hazy in the eyes of the IRS, with a risk of being double-taxed
Thanks for any help!