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Keep your Personal Life out of your Business life?

by SuperDJ
11 replies
Someone once said this to me, but in terms of finance.

Is it common sense to set up a separate banking account specifically for your online activities rather than mesh it with your current daily account?

Cause I'm been thinking it will be easier to keep track of finances if you have an account specifically for your online business. Is this still beneficial if it's something as small as a blog, but you make money off of it?
#business #life #personal
  • Profile picture of the author tjcreation
    I'm not an accountant, but if you are starting a business online - that's what it is, a business. There are many advantages to having things separate. You can take expenses for your business as write offs, etc. I would really recommend that you get a good accountant to help you set things up. Even just a free consultation with one can give you some great insights.
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  • Profile picture of the author BlackCrystal
    It's good to have it separate at some point.
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  • Profile picture of the author abdulquddus
    If its a small income.. you need not waste your time and money for it
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  • Profile picture of the author zamzung
    When it comes to banking accounts, I would have another account for my business... but in some other aspects of business you probably don't want to separate your personal and business life...
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  • Profile picture of the author Rose Anderson
    It will be much easier at tax time if you've kept them separate. Be sure and keep track of all your business expenses.

    Rose
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  • Profile picture of the author TopKat22
    As someone with an accounting and a business owner background, the answer is absolutely yes!

    That does not mean you need to start off by incorporating or making huge legal expenditures upfront but you should pesent yourself as a business and segregate your personal funds from your business funds. You can start out as a sole proprietor as a d/b.a (doing business as) bank account.

    Regardless of how much money you are making you want to do this for your own benefit.

    There are a lot of tax benefits to owning your own business but if your so called business funds are commingled with your personal funds, you can have issues with the IRS taking all the benefits.
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  • Profile picture of the author Fernando Veloso
    Face it as a business - live it as a business. In the long run you'll see what I mean
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  • Profile picture of the author sandradaniela
    having it apart would be the best
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  • Profile picture of the author jamesnewton
    I would recommend separate accounts because your online income is taxable and it is much easier to sort out expenses against income when you keep them in a bucket separate from your everyday expenses. Otherwise, going through everything at year end will be a nightmare. Further, if you have more than 200 transactions or above a certain dollar amount that goes through PayPal they will report this to the IRS (if you live in the US) so you can't hide from your online success nor should you try unless you want to make this a bad experience.
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  • Profile picture of the author celente
    If i was going out with elle Mcpherson i would bring it into my business life. But the chances of me going out with Elle are about the chances you get in lottery.... oh well. LOL.
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