It’s so much easier when you keep your business and your personal life separate and well organized. Read more from tax expert Barbara Weltman on why you need to separate your business finances.

Take a Salary

The owner should set herself up with a salary. If it’s a corporation or Subchapter S, the owner should be made an employee. For a sole proprietor, she could simply set up a regular withdrawal or transfer every two weeks into a personal account.

This enforces the separation of funds. Taking a salary is the main way to break the habit of dipping into business accounts for personal expenses at irregular intervals.

Take Profit Distributions in Lump Sums

Do not take them as irregular ATM withdrawals or by paying personal bills here and there. It makes planning much harder.Seguir leyendo