6:07 we don’t really use checks in the US very often. We can send electronic card payments from our phones using PayPal, Apple Pay, Venmo, Cash App, etc.
I know. They are becoming less and less common. But even before we left, we had several people that did work around the house and asked for checks - to avoid the fees associated with credit cards I believe. Even if you do Venmo or Paypal as a business, you still get dinged those fees. Here in Europe there is no charge to transfer money to a business via bank transfer (for them or the consumer).
Question: how do you categorize the moneys used to start the business? Is that under personal income or business income? (This feels like a chicken and egg question.)
You can keep track of that money and write it off on taxes for business start up costs. Keep your receipts/evidence of purchases. Also, You don’t get taxed for sending money to your own business bank account
Hey Jim, thanks for all in informative videos. What about seeding some initial funds into a new businesses checking account? As a sole proprietor opening a checking account are there any rough edges to consider when depositing funds earned elsewhere into the new business? Thanks!
It's not as shiny or impressive as having a Delaware or Wyoming LLC, but having that separate business bank account is *actually*functional* and will make life easier for you, your bookkeeper, and your tax preparer.
I don't know what happens in the UK, but in the US, the Federal Government will take over the bank as they did with SVB. Deposits are insured up to $250,000.
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