How do you guys manage your business accounts with your personal accts... - GoFuckYourself.com

02-24-2009, 02:35 PM

for tax purposes?

I just started a business bank account, so I will be putting all my checks into my business account.

But for tax purposes then is it OK to withdraw for personal things like food and rent? I dont understand how I have a business account but still be able to pay for personal things.

Phoenix · 02-24-2009, 02:37 PM

you should get a proper accountant.

you need to pay yourself from the company..and then pay your rent with that etc....but go see a real accountant

02-24-2009, 02:44 PM

Quote:

Originally Posted by Phoenix

you should get a proper accountant.

you need to pay yourself from the company..and then pay your rent with that etc....but go see a real accountant

I know but im trying to avoid that. I just spent $1,000 on a lawyer to set this up, another $500 on the actual filing, then $750 for Visa fees, then money for this and that. Im trying to save some $$ by seeing what other people do.

Janak · 02-24-2009, 02:47 PM

As Phoenix says, the cleanest way to do it is to pay yourself a salary from your business account into a personal account, and pay all your personal bills/expenses/whatever out of that. Have separate savings accounts and CC accounts for business/personal too.

notime · 02-24-2009, 02:48 PM

Quote:

Originally Posted by teh ghey

I know but im trying to avoid that. I just spent $1,000 on a lawyer to set this up, another $500 on the actual filing, then $750 for Visa fees, then money for this and that. Im trying to save some $$ by seeing what other people do.

the bigger your revenue is, the more you need the ass kissing way too expensive (but REALLY important & truly needed) accountants, lawyers and tax consutants.

PersianKitty · 02-24-2009, 02:49 PM

I take a monthly draw from my business account to my personal account. At the end of the year, there is an 'on paper' paycheck that covers part of the draw.. the rest is just considered an owner payout. Since I'm a sole owner of an S-Corp it makes it easy.

You've gone to all the trouble of setting up a business and a business bank account, don't muddy the waters by paying for personal items out of that account.

tical · 02-24-2009, 02:55 PM

best way would be to have 2 separate check cards that you use

pay yourself from the business and use that money for personal things

if you work at home, figure out the square footage of your work area and get the % of that from the total square footage of your house - lets say 15% for example

then when its time to pay for utilities, cut 2 checks to pay the bill - 1 personal (85%) and 1 business (15%)

it is sort of a pain in the ass because sometimes you want access to money that you know you have but haven't yet paid yourself with...

sometimes i slip up and use my business card for personal things... at the end of the year your accountant will be able to handle all of that for you... its all the same money since you are the only one employed by the business - just "different pockets" really

02-24-2009, 02:57 PM

Quote:

Originally Posted by PersianKitty

I take a monthly draw from my business account to my personal account. At the end of the year, there is an 'on paper' paycheck that covers part of the draw.. the rest is just considered an owner payout. Since I'm a sole owner of an S-Corp it makes it easy.

You've gone to all the trouble of setting up a business and a business bank account, don't muddy the waters by paying for personal items out of that account.

thanks makes sense. thanks a lot

PersianKitty · 02-24-2009, 02:58 PM

Quote:

Originally Posted by notime

the bigger your revenue is, the more you need the ass kissing way too expensive (but REALLY important & truly needed) accountants, lawyers and tax consutants.

I got lucky in the sense that I'm an accountant by trade (Pre-PK) so I know what to do in most cases. I hand the P&Ls and balance sheets to the CPA firm at the end of the year and let them do the tax returns so I don't have to stay up on the ever changing tax laws.

xxweekxx · 02-24-2009, 02:59 PM

right now i just log into my bank of america business account, then just transfer money to my personal account..

ALL my business expenses are from my business account, so end of year ill just add up all expenses, subtract from revenue, and pay tax on the rest..

But i hope what im doing is OK.. i basically move money from biz >personal as i need it.. and any money i send to my personal account is income.

xxweekxx · 02-24-2009, 03:01 PM

if theres a lot of extra cash sitting in my biz act, ill just use it to buy some assets.. domains.. websites.. etc.. no need keeping 200k cash and paying tax on it.. better off spending 180k of it to buy existing domains/websites.. and pay tax on the 20k

notime · 02-24-2009, 03:07 PM

Quote:

Originally Posted by PersianKitty

I got lucky in the sense that I'm an accountant by trade (Pre-PK) so I know what to do in most cases. I hand the P&Ls and balance sheets to the CPA firm at the end of the year and let them do the tax returns so I don't have to stay up on the ever changing tax laws.

there's money to be made (or saved) in that knowledge

yys · 02-24-2009, 04:06 PM

You can also switch some of your personal bills onto your business such as cell, internet, phone, car lease, etc.. Saves on taxes you would have to pay if you pulled the money through a pay cheque

Lewis_T · 02-24-2009, 08:11 PM

Interesting Thread, i would agree with the above general consensus is, keep personal and biz separate, pay yourself like an employee out of the biz accounts and then take it from there. What yys said is also a good idea, especially with these type of bills, every month and they just become a pain, so throw them on the biz, phone, internet, even car lease is a great idea *wish i hada thought of that before getting a loan for mine.

Bump for others to post how they manage biz / personal accounts...

OG LennyT · 02-24-2009, 10:53 PM

I have an account at a separate bank for broker use

DWB · 02-24-2009, 10:56 PM

Quote:

Originally Posted by teh ghey

I know but im trying to avoid that. I just spent $1,000 on a lawyer to set this up, another $500 on the actual filing, then $750 for Visa fees, then money for this and that. Im trying to save some $$ by seeing what other people do.

If you can't or don't want to afford an accountant, then you just wasted the other money.

Don't ever mix your business and personal money.

tony286 · 02-24-2009, 10:58 PM

get an accountant. We do paydays and cut ourselves paychecks. When you start mixing it all up you are asking for trouble. What I did when I started, I called a bunch of cpa's one returned my call. I said I know nothing about accounting, I have questions what would you charge for an hour of your time. He told me,answered all my questions and has been my cpa for 9 yrs and I have sent him probably 10 clients. When Im happy with something Im very chatty.

bronco67 · 02-24-2009, 10:59 PM

I just started a business account also. I was going to get it merged with personal, bu ta friend advised against it.

He also told me to pay myself as an employee with checks to the personal account. Another tip he gave me was to make sure that the business has 0$ profit to ensure no tax liability for the business, but don't do it too many years in a row.

ExLust · 02-24-2009, 11:42 PM

Personal accountant is a big help.

02-24-2009, 02:35 PM	#1
teh ghey Guest Posts: n/a	How do you guys manage your business accounts with your personal accts... for tax purposes? I just started a business bank account, so I will be putting all my checks into my business account. But for tax purposes then is it OK to withdraw for personal things like food and rent? I dont understand how I have a business account but still be able to pay for personal things.

02-24-2009, 02:37 PM	#2
Phoenix BACON BACON BACON Industry Role: Join Date: Nov 2002 Location: Poems everybody, the laddie fancies himself a poet Posts: 35,457	you should get a proper accountant. you need to pay yourself from the company..and then pay your rent with that etc....but go see a real accountant __________________ Skype Phoenixskype1 Telegram PhoenixBrad https://quantads.io

02-24-2009, 02:47 PM	#4
Janak Confirmed User Join Date: Jan 2009 Posts: 483	As Phoenix says, the cleanest way to do it is to pay yourself a salary from your business account into a personal account, and pay all your personal bills/expenses/whatever out of that. Have separate savings accounts and CC accounts for business/personal too. __________________ My stats here.

02-24-2009, 02:49 PM	#6
PersianKitty Meow Media Inc. Industry Role: Join Date: Jul 2001 Location: In the valley of the sun, cactus, tacos, tequila, and nod Posts: 7,785	I take a monthly draw from my business account to my personal account. At the end of the year, there is an 'on paper' paycheck that covers part of the draw.. the rest is just considered an owner payout. Since I'm a sole owner of an S-Corp it makes it easy. You've gone to all the trouble of setting up a business and a business bank account, don't muddy the waters by paying for personal items out of that account. __________________ Wondering what webmaster programs PK uses? Check them out here!

02-24-2009, 02:59 PM	#10
xxweekxx Confirmed User Join Date: Oct 2002 Posts: 6,780	right now i just log into my bank of america business account, then just transfer money to my personal account.. ALL my business expenses are from my business account, so end of year ill just add up all expenses, subtract from revenue, and pay tax on the rest.. But i hope what im doing is OK.. i basically move money from biz >personal as i need it.. and any money i send to my personal account is income. __________________ _________________ I am the best

02-24-2009, 02:55 PM	#7
tical Confirmed User Join Date: Feb 2002 Location: Las Vegas Posts: 6,504	best way would be to have 2 separate check cards that you use pay yourself from the business and use that money for personal things if you work at home, figure out the square footage of your work area and get the % of that from the total square footage of your house - lets say 15% for example then when its time to pay for utilities, cut 2 checks to pay the bill - 1 personal (85%) and 1 business (15%) it is sort of a pain in the ass because sometimes you want access to money that you know you have but haven't yet paid yourself with... sometimes i slip up and use my business card for personal things... at the end of the year your accountant will be able to handle all of that for you... its all the same money since you are the only one employed by the business - just "different pockets" really

02-24-2009, 03:01 PM	#11
xxweekxx Confirmed User Join Date: Oct 2002 Posts: 6,780	if theres a lot of extra cash sitting in my biz act, ill just use it to buy some assets.. domains.. websites.. etc.. no need keeping 200k cash and paying tax on it.. better off spending 180k of it to buy existing domains/websites.. and pay tax on the 20k __________________ _________________ I am the best

02-24-2009, 04:06 PM	#13
yys Confirmed User Join Date: Aug 2001 Posts: 1,922	You can also switch some of your personal bills onto your business such as cell, internet, phone, car lease, etc.. Saves on taxes you would have to pay if you pulled the money through a pay cheque

02-24-2009, 08:11 PM	#14
Lewis_T Confirmed User Industry Role: Join Date: Dec 2007 Location: Australia Posts: 361	Interesting Thread, i would agree with the above general consensus is, keep personal and biz separate, pay yourself like an employee out of the biz accounts and then take it from there. What yys said is also a good idea, especially with these type of bills, every month and they just become a pain, so throw them on the biz, phone, internet, even car lease is a great idea *wish i hada thought of that before getting a loan for mine. Bump for others to post how they manage biz / personal accounts... __________________ Lewis FuckYouCash.com \| BoyProfits.com \| PrettyInCash.com \|\| WePreachPorn.com Email: lewis /at/ fuckyoucash /dot/ com \|\| lewis /at/ wepreachporn /dot/ com ICQ: 338-009-296

02-24-2009, 10:53 PM	#15
OG LennyT Wall Street Pimp Industry Role: Join Date: Jun 2003 Location: Phoenix, AZ Posts: 14,345	I have an account at a separate bank for broker use __________________ Tradeking - my online broker \| 4.95 a trade \| make real $$

02-24-2009, 10:58 PM	#17
tony286 lurker Industry Role: Join Date: Aug 2002 Location: atlanta Posts: 57,021	get an accountant. We do paydays and cut ourselves paychecks. When you start mixing it all up you are asking for trouble. What I did when I started, I called a bunch of cpa's one returned my call. I said I know nothing about accounting, I have questions what would you charge for an hour of your time. He told me,answered all my questions and has been my cpa for 9 yrs and I have sent him probably 10 clients. When Im happy with something Im very chatty.

02-24-2009, 10:59 PM	#18
bronco67 Too lazy to set a custom title Join Date: Dec 2006 Posts: 29,032	I just started a business account also. I was going to get it merged with personal, bu ta friend advised against it. He also told me to pay myself as an employee with checks to the personal account. Another tip he gave me was to make sure that the business has 0$ profit to ensure no tax liability for the business, but don't do it too many years in a row. __________________

02-24-2009, 11:42 PM	#19
ExLust Confirmed User Join Date: Aug 2008 Posts: 3,223	Personal accountant is a big help. __________________ BE A PARTNER