Any who has a corporation uses B&H's PayBoo credit card?

[Asa7]

I have an S-corporation in NYC. I thought B&H's PayBoo credit card sounds great, but I am wondering if I can use it for my corporation. As an S-corporation, I have to make sure all the expenses for the business are separated from my personal expenses. Pretty much every photo equipment I buy is for my business, so in that sense, everything charged on this card will be separate from my personal expenses. However, I have to provide my SSN to sign up with this card, instead of EIN, which is usually required to open a business credit card. So in this sense, this credit card is for personal use.

Any advice or comment regarding this question will be appreciated. Thank you!

 

[henryp]

Our Payboo FAQ says:
Who can apply for / use the B&H Payboo Card?
Individuals with a U.S. billing address and a valid SSN/ITIN may apply. Cardholders are subject to credit approval.

 

[Edymagno]

Our Payboo FAQ says:
Who can apply for / use the B&H Payboo Card?
Individuals with a U.S. billing address and a valid SSN/ITIN may apply. Cardholders are subject to credit approval.

Dear Henry:

I've been a customer of B&H for almost 40 years. Ordering first from the phone, written leters and fax, then started using the internet to buy most of my equipment to be shipped to other states like Texas, Florida, etc, etc. But many times to be shipped straight to Mexico. My billing address always has being an address in Mexico.

How can I keep being a B&H customer without paying the sales tax under the new laws?

Thanks so much in advance.

Eduardo Cervantes

 

[Tom_N]

How can I keep being a B&H customer without paying the sales tax under the new laws?

If you live in a state that charges sales/use tax, you can't. Either they'll be able to force B&H (and any other merchant) to collect taxes for them – or they'll expect you to remit those taxes directly to them.

The B&H card gives you an instant credit equal to the tax, but it doesn't keep the state from collecting tax.

From the B&H FAQ:

Am I paying sales tax on my purchase? Do I need to submit anything in my tax filings?

B&H will collect and remit state sales tax in accordance with state sales tax laws and regulations. So, customers do pay required sales tax and do not need to keep track or file anything separately.

 

[henryp]

I've been a customer of B&H for almost 40 years. Ordering first from the phone, written leters and fax, then started using the internet to buy most of my equipment to be shipped to other states like Texas, Florida, etc, etc. But many times to be shipped straight to Mexico. My billing address always has being an address in Mexico.

How can I keep being a B&H customer without paying the sales tax under the new laws?

Who can apply for / use the B&H Payboo Card?
Individuals with a U.S. billing address and a valid SSN/ITIN may apply. Cardholders are subject to credit approval. Anyone with permission may use the card.

Can I use Payboo to pay for an order that I ship internationally?
Yes, the Payboo Card can be used to make all purchases from B&H however, there will not be any Payboo Card Savings on internationally shipped orders.

I do not know now if we will be able to modify this in the future,

 

[Asa7]

Hi @henryp, thank you for your reply.

I can see that FAQ says Individuals with US billing can open the card but I am wondering if a business can use the card legally as well. And have the expense separate from my personal expenses. Do you have any idea about this? Thanks

Our Payboo FAQ says:
Who can apply for / use the B&H Payboo Card?
Individuals with a U.S. billing address and a valid SSN/ITIN may apply. Cardholders are subject to credit approval.

 

[Michael Fryd]

I have an S-corporation in NYC. I thought B&H's PayBoo credit card sounds great, but I am wondering if I can use it for my corporation. As an S-corporation, I have to make sure all the expenses for the business are separated from my personal expenses. Pretty much every photo equipment I buy is for my business, so in that sense, everything charged on this card will be separate from my personal expenses. However, I have to provide my SSN to sign up with this card, instead of EIN, which is usually required to open a business credit card. So in this sense, this credit card is for personal use.
Any advice or comment regarding this question will be appreciated. Thank you!

Check with your accountant. I suspect that he will say that you can legally dedicate a credit card for business use, even though it is issued to you as an individual.

Only use the card for business purposes. When the bill comes, make sure the business sends in a check. I suspect your accountant will tell you that this is within both the letter and the spirit of the law.

If your business goes bankrupt, you are still personally responsible for the credit card bill. However, even business credit cards generally require a personal guarantee, so this shouldn't be a significant difference.

 

[Asa7]

Hi Michael,

Thanks for the reply! So you mean, issue a check to myself, like I paid for the equipment with PayBoo as an employee, and have my company reimburse it with a check?

That sounds like a safe way to do it.

I'll confirm about this with an accountant but I have to find one as the one I used this year was really bad and won't use this person again...

Thanks!

I have an S-corporation in NYC. I thought B&H's PayBoo credit card sounds great, but I am wondering if I can use it for my corporation. As an S-corporation, I have to make sure all the expenses for the business are separated from my personal expenses. Pretty much every photo equipment I buy is for my business, so in that sense, everything charged on this card will be separate from my personal expenses. However, I have to provide my SSN to sign up with this card, instead of EIN, which is usually required to open a business credit card. So in this sense, this credit card is for personal use.
Any advice or comment regarding this question will be appreciated. Thank you!

Check with your accountant. I suspect that he will say that you can legally dedicate a credit card for business use, even though it is issued to you as an individual.

Only use the card for business purposes. When the bill comes, make sure the business sends in a check. I suspect your accountant will tell you that this is within both the letter and the spirit of the law.

If your business goes bankrupt, you are still personally responsible for the credit card bill. However, even business credit cards generally require a personal guarantee, so this shouldn't be a significant difference.

 

[Michael Fryd]

Hi Michael,
Thanks for the reply! So you mean, issue a check to myself, like I paid for the equipment with PayBoo as an employee, and have my company reimburse it with a check?
That sounds like a safe way to do it.
I'll confirm about this with an accountant but I have to find one as the one I used this year was really bad and won't use this person again...
Thanks!

...

No.

Open a PayBoo account personally, but treat it as a business account.

Use the PayBoo account for business purposes. Have your bookkeeper treat it as if it were a business account. If you are using Quickbooks (or similar) add it as a business credit card account. When the bill comes at the end of the month, have the business write the check to PayBoo.

The PayBoo people don't care who writes the check, they just want to know that it will clear, and which account to credit.

If you want to know how to handle a personal PayBoo purchase ask your accountant what to do if you accidentally make a personal purchase with your business credit card.

There are a number of reasonable ways of handling this, use the one that your accountant prefers.

One choice is to not record the occasional personal purchase into your business QuickBooks. At the end of the month, send PayBoo two checks; a personal check to cover the personal purchases, and a business check to cover the business purchases.

Another option is to record the purchase in QuickBooks under a category called "Exchange". You can then reimburse the business, and that reimbursement also gets categorized as "exchange". At the end of the year, the exchange account should have a zero balance as the expenses will balance out the reimbursements. When you reimburse the business it can be done by writing a check to the business, a check to PayBoo, or simply deducting it from your paycheck.

Again, check with your accountant. He will let you know the method he prefers. But the bottom line is that it shouldn't be a big deal to dedicate a personal PayBoo account for business use.

 

[Edymagno]

I've been a customer of B&H for almost 40 years. Ordering first from the phone, written leters and fax, then started using the internet to buy most of my equipment to be shipped to other states like Texas, Florida, etc, etc. But many times to be shipped straight to Mexico. My billing address always has being an address in Mexico.

How can I keep being a B&H customer without paying the sales tax under the new laws?

Who can apply for / use the B&H Payboo Card?
Individuals with a U.S. billing address and a valid SSN/ITIN may apply. Cardholders are subject to credit approval. Anyone with permission may use the card.

Can I use Payboo to pay for an order that I ship internationally?
Yes, the Payboo Card can be used to make all purchases from B&H however, there will not be any Payboo Card Savings on internationally shipped orders.

I do not know now if we will be able to modify this in the future,

Thanks HP.

Very disappointing news.

Why would B&H or other store should charge state sales tax for items being ordered over the internet from another country and being shipped to an address out of USA?

:-(

 

[Doug J]

I've been a customer of B&H for almost 40 years. Ordering first from the phone, written leters and fax, then started using the internet to buy most of my equipment to be shipped to other states like Texas, Florida, etc, etc. But many times to be shipped straight to Mexico. My billing address always has being an address in Mexico.

How can I keep being a B&H customer without paying the sales tax under the new laws?

Who can apply for / use the B&H Payboo Card?
Individuals with a U.S. billing address and a valid SSN/ITIN may apply. Cardholders are subject to credit approval. Anyone with permission may use the card.

Can I use Payboo to pay for an order that I ship internationally?
Yes, the Payboo Card can be used to make all purchases from B&H however, there will not be any Payboo Card Savings on internationally shipped orders.

I do not know now if we will be able to modify this in the future,

Thanks HP.

Very disappointing news.

Why would B&H or other store should charge state sales tax for items being ordered over the internet from another country and being shipped to an address out of USA?

:-(

Henry didn't state that orders shipped to destinations outside of the US will be charged state sales tax.

The discount/rebate with the card would be equal to the amount of state sales tax that they collect from the customer and pay to the appropriate US state. Since they are not collecting state sales tax on international shipments, there is no discount/rebate.

Cheers,
Doug

--
Bird galleries on PBase
Birds of Florida on PBase
General photography galleries on PBase

 

[henryp]

Why would B&H or other store should charge state sales tax for items being ordered over the internet from another country and being shipped to an address out of USA?

If an order (from anywhere) is shipped to an address outside the USA, that country's import tax, duty, customs etc, and brokerage, may apply. B&H does not charge state sales tax for any order, ever. Like other retailers, we collect state sales tax when the US state to which an order is shipped requires we do so.

 

[Asa7]

Hi Michael,

Thanks so much for the detailed info! I will definitely check with my accountant but your explanation was really helpful!!! Thank you!! Have a great day!!!

Hi Michael,
Thanks for the reply! So you mean, issue a check to myself, like I paid for the equipment with PayBoo as an employee, and have my company reimburse it with a check?
That sounds like a safe way to do it.
I'll confirm about this with an accountant but I have to find one as the one I used this year was really bad and won't use this person again...
Thanks!

...

No.

Open a PayBoo account personally, but treat it as a business account.

Use the PayBoo account for business purposes. Have your bookkeeper treat it as if it were a business account. If you are using Quickbooks (or similar) add it as a business credit card account. When the bill comes at the end of the month, have the business write the check to PayBoo.

The PayBoo people don't care who writes the check, they just want to know that it will clear, and which account to credit.

If you want to know how to handle a personal PayBoo purchase ask your accountant what to do if you accidentally make a personal purchase with your business credit card.

There are a number of reasonable ways of handling this, use the one that your accountant prefers.

One choice is to not record the occasional personal purchase into your business QuickBooks. At the end of the month, send PayBoo two checks; a personal check to cover the personal purchases, and a business check to cover the business purchases.

Another option is to record the purchase in QuickBooks under a category called "Exchange". You can then reimburse the business, and that reimbursement also gets categorized as "exchange". At the end of the year, the exchange account should have a zero balance as the expenses will balance out the reimbursements. When you reimburse the business it can be done by writing a check to the business, a check to PayBoo, or simply deducting it from your paycheck.

Again, check with your accountant. He will let you know the method he prefers. But the bottom line is that it shouldn't be a big deal to dedicate a personal PayBoo account for business use.