Since the business is being operated from the home. Is it wise to pay the rent and all of your other living expenses (lights, gas, cable, internet, etc.) right from the business account? Or should the business owner pay themselves first ..... and then pay their bills with their own personal account? If you know please give reasons why.
2007-08-01 15:45:14 · 3 answers · asked by GG 2 in Business & Finance ➔ Small Business
It all depends on whether you want to run an incorporated business or be a sole proprieter. You should talk to an accountant to explain some of the differences.
2007-08-01 15:50:25 · answer #1 · answered by CC 6 · 0⤊ 0⤋
I've been in business for a little over a year, have 80 + customers and this is a home based business. I pay everything dealing with my business account. I also use my personal account to pay for business items. You just need to keep your receipts on all the stuff you've paid for dealing to your business. I pay gas, internet, etc with both business and personal credit cards/debit cards. When I did my taxes, I just figured out the percentage of each. You can always talk to your accountant/tax preparer
Hope the helps.
Good luck!
2007-08-02 00:53:27 · answer #2 · answered by Brent Y 3 · 0⤊ 0⤋
Since you only use a portion of your home for business, it's all you can claim for your taxes. All your rent/utilities would not be a legitimate expense for a business. Who cares which account you pay those bills from--just keep good records and reimburse whichever at year end. Unless you're incorporated, it all ends up in the same pot anyway.
2007-08-01 22:50:57 · answer #3 · answered by towanda 7 · 0⤊ 0⤋