Decide where you want to keep your money as your first order of business. This will depend on the legal structure of your company. A separate business bank account is required if your company is an LLC, Partnership, or Corporation. You don’t have to if you’re a sole proprietor, but we recommend it.
Accounting will be simpler if you have a separate bank account for your business’s revenue and spending. Your personal income and expenses won’t become mixed up with those of your business, and you’ll only have one account to keep track of for bookkeeping and tax purposes. It really does make tax season much easier to only have to look at one set of bank statements.
Look for a bank that has both a local branch and a robust online banking system. Also, ensure that the bank can integrate with your Point of sale system and other technological requirements. Business bank accounts typically charge higher fees than personal accounts and frequently have higher minimum balance requirements. Before committing to a bank or a business account, double-check these figures.
We recommend opening two accounts: one checking and one savings, with the latter holding funds for taxes and unforeseen expenses. Remember that you must have a registered business name before you can open any business accounts.
Finally, think about getting a business credit card. This will not only help offset some upfront costs, but it will also help your company’s overall credit. Corporations and LLCs are also required to have a separate line of credit separate from their personal accounts.
The tax laws are very complex. Our short blog articles cannot cover in full all the nuances of the rules. Your specific facts may hold various opportunities and possible risks that only trained, experienced, and highly qualified tax specialists can spot. We encourage you to find such help, rather than trying to figure it all out on your own. Consider giving this marketplace a try by posting your project and signing up here.
If you are a licensed tax professional and are interested in helping others either part or full-time, or ad hoc, come on in! Happy to have you. Our marketplace has the full suite of tools to communicate with clients including compliance calendars, task and message management, and billing. You can also quickly connect to knowledgeable colleagues who can complement your services with the ones you do not provide. Register here.