Growth Group | Accounting for Musicians

Blending Is For Artists, Not Accounts

Open a separate business checking account. Whether you are operating your business as a sole proprietor or LLC you must keep your personal and business finances separate, don’t blend them.

Many new business owners pay for business expenses and receive business income directly in their personal bank accounts, this is bad news. How can you keep track of expenses that were required for your business and customer payments if you’re mixing the account with your childcare payments and weekly grocery run?

Also, the IRS could consider your new venture as a hobby if you choose to blend your business and personal funds together, instead of a business. So, show the IRS how serious you are about owning an official business and open a separate checking account.