I’m a single member LLC about to start. Should i open a business bank account for the LLC or just use my own personal account and keep all the receipts? Thanks for any input
You should already have a business account. If for no other reason, then they go off your oldest business account for your business’s credit rating.
Open an account for the business itself. You will have much greater control of expenses and will make it much better on yourself if you get audited. I have my business account at a different bank than my personal. Don’t mix accounts…
Also, you should keep or digitize your receipts regardless. Just putting the charge on your business account isn’t enough to prove that what you bought was for the business.
That is the main reason almost all of my purchases over $400 are by check.
Definitely have a separate account for your business.
100% open a business account under the LLC’s name. Keep personal and business funds separate. One of the biggest advantages of creating an LLC is the shield it creates from anyone touching your personal assets (even with a single member LLC). It would be counterintuitive to create an LLC then not take advantage of the LLC’s benefits.
Open an account for the business if your taking this thing serious you will eventually need business credit.
Even if not llc you always want income to go into a dedicated business account.
Absolutely you should have a separate account and you should have a TIN as well even though the LLC is a passthrough.
What’s the benefit of TIN versus just claiming the extra income on my personal taxes? New to all of this
Squid I’m from MO too. Truman lake area
Nice! Good area.
You’re about the same distance from me as you are from @Rusty. I washed the Hampton Inn in Clinton last year.
An LLC must present the company’s tax ID number to establish a business bank account. An LLC’s tax ID number will be used on all the company’s tax and banking documents. A bank uses an LLC’s tax ID number as a way to quickly identify the company. Banks will require a copy of the company’s articles of organization to show the company is a separate legal entity from the members of the LLC.
Certain vendors may not do business with an LLC that does not have a tax ID number. Furthermore, LLCs that sell items to the public are required to get a tax ID number. Having a tax ID number allows an LLC to purchase items at wholesale from certain vendors, whereas this may not be possible for a business that does not have a tax ID number.