One of the best pieces of advice I received when I first started my business? Treat your business and personal assets like church and state. They are not supposed to mix.
As a business owner, you definitely do not want to commingle your personal and business assets. Revenue you earn from your business should not be deposited into your personal checking account. You should not be using your business credit card for your personal expenses.
One of the reasons why this is so important is because in the unlikely event you get sued, and you’ve commingled your assets or accounts, your personal assets can be attached to the suit as well.
Luckily, it’s easier now more than ever to keep these accounts separate with online banking.
Have you applied for Greenwood’s debit card yet?
Once your business is registered with the appropriate entities, be sure to open a separate business checking and savings account. This will also help your bookkeeping when it’s tax time.
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Rianka R. Dorsainvil, CFP®️ is the Co-Founder and Co-CEO of 2050 Wealth Partners a virtual, fee-only comprehensive financial planning firm dedicated to serving first-generation wealth-builders, entrepreneurs, and thriving professionals. Rianka also hosts 2050 TrailBlazers, a podcast aimed to address the lack of diversity in the financial planning profession by engaging industry experts and leaders in conversation.
As an award winning successful, millennial Certified Financial Planner professional, Rianka offers a unique perspective not only on the current state of the financial service industry, but on how to stay relevant in an ever-changing world.
Rianka serves as a member of CNBC’s Digital Financial Advisor Council and CFP Board’s Diversity Advisory Group, is a Forbes Personal Finance Contributor, and has been recognized for her accomplishments and leadership within the industry by leading publications and organizations such as Investment News’ inaugural 2017 Women to Watch Rising Star and Wealth Management’s Ten to Watch in 2018. She has been published in PBS NewsHour, Forbes, USA Today, Black Enterprise, CNBC, Women’s Health, and more.