After you form your LLC and you have your new tax ID number, you need to open up a business checking account. Having a business account can help you manage any monies that pass through your business, as well as keep track of any expenses you may want to deduct at tax time.
Banks usually require you to show them your Articles of Organization as proof of the business's existence before opening the account. After the account is in place, you'll have a place to cash and deposit all those checks you'll be getting from the syndicate! Keeping your business income and expenses separate from your personal accounts is required by the IRS. You need to be able to prove which deductions are actual business expenses with receipts and documentation. Setting up a separate account for business income and expenses is the easiest way to do this — and hang on to your receipts!
Another thing you may want to consider is some sort of accounting software that helps you keep track of your income and expenses. You can get software that does everything you need for a small business, like QuickBooks, Quicken, or even Microsoft's Money.
Was this article helpful?