The #1 New Business Tax Mistake
Starting a new business is a whirlwind of activity, but neglecting core tax setup steps can lead to major headaches down the road. The most important step for sound recordkeeping is often the most overlooked: opening a separate business bank account. Commingling business and personal funds is a common mistake that can cause major problems, especially if you face an IRS audit. This is an either/or dilemma: either risk an audit for convenience now, or simplify your life later.
A separate account makes it easier to track your business income and deductible expenses. It provides a clear record of your business transactions and simplifies preparing your financial statements and tax returns. This both/and solution is a cornerstone of Sound financial practice. The right way is simple: open a dedicated business checking account as soon as you start your business and use it exclusively for all business transactions. This sets up a Simple and Sound foundation.
Ready to build a solid financial foundation? Download the free 30-day Tax Setup Checklist for New Business Owners now: https://www.safesimplesound.com/new-business-your-first-30-days-tax-setup/.
DISCLAIMER: This content is for educational purposes only and should not be considered personalized financial advice. Always consult with a qualified financial professional before making financial decisions.