Many tax advisors tell their self-employed clients — including those who are “consulting” while looking for work — to open separate business bank accounts to make it easier to separate business and personal expenses for tax purposes.
Don’t do it, says The Los Angeles Times.
This common tax advice could turn into a banking nightmare that puts every dollar in your business account at risk.
Unbeknown to many, business and personal accounts are governed by completely different rules. Those rules protect individuals from online hacking but can leave small-business owners to twist in the wind.
Normally that would merely be worrisome. But it’s far more frightening now because technology and law enforcement experts believe there is a huge wave growing of sophisticated criminal enterprises that target small-business bank accounts.
Photo by Photofunia.