Hi, I'm attorney Elizabeth Potts Weinstein. Today, we're diving into the essential steps for paying yourself as a sole proprietor. If you own a business solely under your name and haven’t formed an LLC or corporation, you're automatically a sole proprietor. You can file for a DBA (Doing Business As) or an FBN (Fictitious Business Name) if you want to operate under a business name different from your own, but legally, it's still just you. Why You Shouldn't Mix Personal and Business Finances As a sole proprietor, you might think it's easier to deposit all business income into your personal checking account and spend from there. However, this approach is problematic for several reasons: Tax Obligations : You need to set aside money for income taxes and self-employment taxes. Business Expenses : You must reserve funds for both recurring and occasional business expenses. Financial Tracking : Without clear separation, it's challenging to track your bus
Hi, I'm attorney Elizabeth Potts Weinstein. Today, we're diving into the essential steps for paying yourself as a sole proprietor. If you own a business solely under your name and haven’t formed an LLC or corporation, you're automatically a sole proprietor. You can file for a DBA (Doing Business As) or an FBN (Fictitious Business Name) if you want to operate under a business name different from your own, but legally, it's still just you. Why You Shouldn't Mix Personal and Business Finances As a sole proprietor, you might think it's easier to deposit all business income into your personal checking account and spend from there. However, this approach is problematic for several reasons: Tax Obligations : You need to set aside money for income taxes and self-employment taxes. Business Expenses : You must reserve funds for both recurring and occasional business expenses. Financial Tracking : Without clear separation, it's challenging to track your bus
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