Establishing a separate legal entity for your business has many advantages, including the ability to protect your personal assets from business debts, losses, and lawsuits. Don’t worry, it only takes a few minutes.
You also need to apply for an Employer Identification Number (EIN) via the IRS’s website. The Small Business Administration has tips on what structure may work for you, but it’s always best to get advice from a legal expert. If you haven’t already, establish a separate legal entity for your business, such as an LLC, C Corp, or S Corp. Keeping these things separate not only helps you reduce problems, it also greatly simplifies things and makes it easier to manage your finances.ĭon’t know where to start with separating out your personal and business finances? Let’s look at some easy ways to do it. Certain things don’t mix well - like your personal finances and your business’s.
