Can I divide payments into preset amount to be sent to 2 different businesses?

[aquapodicsmqt]

we are doing a collaboration package with a business we share a building with and i am wondering if there is a way to collect a payment for the package and have it automatically divided into a preset amount and sent to the two businesses. preferably online but on site as well  

[TheRealChipA · Accepted solution]

Hi @aquapodicsmqt.  Your question has a couple of answers.  First, the technical answer.  Federal banking and payment processing regulations require that all money collected be reported and paid as sales/income to the business that processes the transaction.  There are no exceptions to this, and I doubt there ever will be.  So, if your website takes the payment, the funds are reported on your 1099 from Square, and if the other business takes it the same is true for them.

Having said that, as long as your two businesses have a formal agreement you can send money to each other which in most cases can also be a tax deduction to the business sending the money to the other.  However, there are legal and accounting issues that need to be addressed here and we here in the Seller Community can not offer legal or accounting advice.  I’d recommend sitting down with your attorney and/or accountant (both companies that share the building) to work out the mechanics of you you would do this.