Noe Noe - 05/12/2012 
You need to keep accurate redorcs when running a business. This will be your best defense if you ever get audited. For IRS purposes, you need to make a profit every 3 out of 5 years to have the IRS prove that you are not running a business. Otherwise, it is up to you to prove that you are running a business and not doing a hobby. You can prove that you are running a business by keeping your business accounts and personal accounts separate.You can write off any legitimate business expense including dinners with clients, car expenses, equipment, etc.Having a separate checking account and credit card is a good idea. However, it isn't necessary. You can comingle your business and personal expenses using your personal accounts. But, if you do this, then it will be harder for you to prove that you are running a business.For your revenues, you don't need a corporate account to make you deposits. You just need to make the deposits in your separate account that you use for business.You can read Publication 334 for more information. |
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