When you launch a business, it’s important to keep good records so you can claim a tax deduction for allowable business expenses, like equipment, computer software, auto expenses, and office furniture.
While you don’t have to have a separate business checking account right off the bat, it’s a good idea—especially if you’re not a great bookkeeper. But first, you generally have to file a fictitious name form with your state if the business will have a different name than yours. Just ask your bank what’s required.
You can operate your small businesses as a sole proprietor without having to complete any legal forms. However, being a sole proprietor means that if the business gets sued, so do you. To limit your liability and protect your personal assets you can incorporate, which means that a business lawsuit would only put the assets of the business in jeopardy.
You can learn more about the paperwork you need to incorporate at sites like Rocket Lawyer or LegalZoom or by consulting with an attorney.
No matter if you enjoy working with technology or people, it’s a great time to start a business that helps you diversify your income, expand your career options, follow your dreams, and earn more money.
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