Schedule C Business for Churning Business Checking Accounts?

[jnw]

I need a business to get business checking accounts.  I was thinking about setting up a Schedule C business just for the purpose of churning business checking accounts.

This would allow me to earn a wage and put all the earnings into Roth IRA and match my SSDI income with it in my Roth Solo 401k -- which I already have setup from before with another small business.  I'd pay the 15.85% or so social security tax but that would be it.  I wouldn't owe any federal or state taxes because I am low income.

So it would serve a couple purposes
1) have a business so I can get business checking accounts to churn
2) get a wage so I can put money into both Roth IRA and Roth Solo 401k.


Could I do this? I know the banks will send me a 1099-INT for the bonuses I imagine, but could that be appplied to business income instead of just general interest? I mean it's work to do this sort of thing over and over.

I'd like to get like $300 or so per month income from this.  I heard it's easier to churn business checking accounts because they don't require direct deposit.

It would seem weird churning them without having an actual business.

I've had my own Schedule C business int eh past for reselling stuff on ebay, items I buy from the flea market. I know how to do all the bookkeepign and related taxes.  I also have my own EIN etc.  I imagine I can use the same business.. I still have an inventory of around $1000 but I haven't done anything with the reselling business for a few years. I'd have to apply for sales tax id with the state again if I did that.

Does this make sense? The routine churning seems like business income to me.

[morethanconquerors]

At the end of the day, the interest is interest and is unearned and not eligible income for a Roth contribution. Since you already have an existing business, you can open up the accounts and collect the money, but you won't be able to accomplish the Roth piece.

[Duke03]

As a professional churner you don't need a business, you need a "business" hint hint...don't make this more complicated than it needs to be.  Part of churning is you take advantage of the banks greed to always want to be lending and earning interest.  Use this to your advantage... PM me if you need any specific details or questions answered.