Getting Serious About Professionalism In Your Business
With your products selling well, you might start realizing that you need to take steps to be truly professional in order to stay organized and make more income. The more professional you are with your company, the better you will appear to commercial lenders, possible partners, vendors and others. Get things in order with these business-related ideas.
Get Banking Account
Among the first professional decisions to make is to get an account for your business. You might be using your personal credit and debit cards to place business orders and to pay friends who help you out with business tasks. However, self-employment taxes will need to be paid; handling your taxes is tougher to figure out when your company and personal financial details are all tied up together. With a separate account, completing taxes and other tasks is just easier.
Getting an account is also smart because most banks have a small business department. Opening an account is a way to begin what could be a long, prosperous relationship with your commercial banker. This relationship can thrive when you apply for and receive loans with special rates because you're a customer, for instance. They could offer a line of business credit so you can purchase supplies or equipment. If you choose your banking partner wisely, they may offer you a full suite of services.
Your purchases might be able to help you reduce your self-employment tax burden. However, should the IRS or state tax department want you to produce receipts about your purchases, it's imperative that you have them. Make sure that you find a good way to track your receipts and organize them.
Designate Employees or Contractors
If friends or others are doing some work or helping you to get things done, you're probably paying them. This is fine, but you need to designate whether those people are independent contractors or actual employees. If they're independent contractors, they will only perform specific tasks for you. However, when you start making demands on their time or want them to come in at certain hours, it's possible that you're treating them as employees. If they're employees, you're responsible for paying unemployment insurance, workers' compensation insurance and other costs. To be sure, consult the IRS directly.
Being more professional will benefit you as a company owner. Work with commercial bankers, such as at LCNB National Bank, and other professionals who can support you in your ownership role