photo credit: alancleaver_2000
Entrepreneur.comÂ recently posted a very interesting article about keeping business and personal finances separateÂ that I think every business owner should read. This is an extremely beneficial article to those of you whoÂ own your own business and are currentlyÂ keeping your personal and business finances together.
One very easy way to ensure that you keep these twoÂ sets of finances separate is by maintainingÂ separate checking accounts for each of them. This way when you’re doing business you can write a check out of the appropriate account.
Rather than use your own personal credit card for your company, obtain a business credit card. This might be difficult for small businesses as lending is still quite strict at the moment, but it is in your best interest to at least attempt to obtain the business credit card.
Â Make it official
Consider establishing a limited liability company (LLC) or an S Corp for your business. Sit down with your team of advisors–attorneys, CPAs, financial planners and insurance agents–and determine what entity makes the most sense, how this business will impact your taxes and financial planand what insurance coverage you should consider, Heil says.