| It's easy to just slap together a home business and not | | | | It makes it easier to make payments for business |
| think that much about where your personal finances | | | | expenses such as website hosting online and keep |
| and business finances should separate. The extra | | | | track of it as a business rather than personal expense. |
| bank accounts can seem like a bit of a pain. It's all you | | | | A business credit card is also good for building a credit |
| after all, right? | | | | history for your business that is separate from your |
| Nope. Not exactly. | | | | personal credit history. You may or may not ever |
| Make Your Life Easier at Income Tax Time | | | | need credit for your business, but if you ever need it |
| If you keep your business expenses separate, that's | | | | you will really want it. |
| going to make your life a lot easier when you file your | | | | Your personal credit score is usually used to determine |
| income taxes each year. You'll have a more definite | | | | whether you can get business credit for the first time, |
| indication for what was a business versus a personal | | | | but once you have a credit history established in the |
| expense. | | | | name of your business, future credit decisions for your |
| Having separate personal and business accounts also | | | | business can be made based on that history. |
| looks better to the IRS in case of an audit. This can be | | | | Look More Professional |
| important. You want to be able to show that the | | | | Being able to make and receive payments in the name |
| business deductions you made were indeed legitimate | | | | of your business looks more professional than getting |
| business deductions. It also shows that you are more | | | | them made out to you personally. It especially looks |
| serious about your business, and aren't treating it as a | | | | better if you have clients you're dealing with. It may not |
| hobby. | | | | matter as much if you're getting payments through |
| It's really not hard to open up a business checking | | | | PayPal where the only thing people see is your email |
| account. You can probably do it at the same bank you | | | | address. That's a reason to have a professional |
| have your personal account at. They may need to | | | | looking email address. But for other kinds of payments, |
| see your business license or other proof that your | | | | it really is better to look as professional and serious |
| business name is a name you can legitimately use. | | | | about your home business as possible. |
| You may also want to consider a business credit card. | | | | |