You need a business Bank Account
In the mist of Covid-19 (Corona Virus), we at JDS WebDesign are hoping everyone is safe, washing your hands frequently, sneezing and coughing in your elbow, and practicing social distancing. Over the next several weeks, we are planning on blogging about how to make your website more business friendly. We will have some tutorials on our favorite plugins and features, which will make your site more efficient.
A few weeks ago, a fellow web designer asked me to assist her with some client work. Not an issue, I had the time and she knew exactly what was missing from the project. After completing the task (actually built a couple of pages), an invoice was forward. A few days passed and in my mail box was a check. It was the correct amount. Everything looked fine, except it was from a personal account. Thinking that it might have been written on the wrong account, I called and inquiry. “No … I have only one account.” Silence rung on my end. Over the next twenty minutes, I gave her my presentation on why you need a business account. This posting will be shorter.
Treat your business like a business
Treat your free lance business like a business. You have business expenses, which only occur in business, such as conference trips, work space, research books, applications to make you more efficient, hosting accounts, business cards, etc. When you are filling your taxes, these payments need to be different.
Want to make a bad impression? Send a client or partner a personal check. A true red flag. Either you are not planning on being in business long, or you just got started. In either case, it is not a good thing.
Did I mentioned taxes? You can make your (or your certified professional accountant) live a lot easier, with a separate account. Besides you do not want your account to know every dime you spend. They only need to know relevant business expenses and cost.
Have you ever wonder, how some small business owners know how much money they have in their business? You guessed it. They have a business bank account.
What is needed to get a business bank account?
While it is difference from banking institution to banking institution. Most will need you to have the following…
*Employer Identification Number (EIN)
*Business License with the name of the business, or (if a license is not needed, then) Business Name filing document
*Filing Status (LLC, Solo Entrepreneur, Non Profit, Corporation, etc.)
Do all banks offer business accounts
Some banking institutions do not. Years ago, I used a credit union for my banking. They did not offer business banking options. Most of your large banking institutions offer banking options for business. If your bank does not offer business banking, then that is a good thing. Being a strong believer in not having all my eggs in the same basket, you can keep everything separate.
Image courtesy of Artem Beliaikin.
JDS WebDesign is a Web Design and Brand Marketing Agency located in Marietta, Georgia. We create AWESOME on line presence for Start-ups and Influential People/Organizations. To learn more about us or how we can help you and your organization, you can contact us.