Starting a business can seem like a long and drawn-out process – but don’t worry, you’re getting closer to being ready to launch. Now that you’ve got office space, a team of advisers and some great-looking marketing material, you’re ready to complete a few final housekeeping items to keep your business “legal” and in compliance, while also helping you manage your money and pay your taxes
Here are a few financial and legal items to keep in mind as you prepare for the last steps of starting a business:
Open a Business Bank Account
One of the easiest ways to keep track of your business expenses (and keep them separate from your personal finances) when starting a business is to open a business bank account. Corporations and limited liability companies (LLCs) are required to maintain separate bank accounts, and this practice is also highly recommended for sole proprietors. For corporations and LLCs, failure to maintain separate business bank accounts can lead to a “piercing of the corporate veil” and a loss of protection from personal liability.
Even if you don’t have a corporate entity when starting a business, if you’re a sole proprietor, keeping a separate business bank account is important to help you track revenues, expenses and profitability of your business. It also lends credibility. Remember, banks will require at least a DBA (“Doing Business As”) filing before they let you open a bank account under the name of your business (if the business name is different from the owner’s name).
Let CorpNet™ help you file a DBA quickly, easily and at an affordable price. Read more about our DBA filing service so you can get started with a business bank account.