- Jamee Mitchell EA
Dos and Dont's for Business Owners
Updated: Jan 24, 2022
Keep track of all income and expenses
Have all subcontractors fill out W-9’s before paying them
Issue 1099’s for all non-corporate subcontractors paid $600 or more during a calendar year
Use a bank that returns check images with the statement and/or grants online access
Keep all Bank Statements and business credit card statements
If you are an S-Corporation, Pay yourself a fair wage
Obtain a business license in the city in which you operate your business
Keep receipts for all major purchases
Keep an accurate mileage log for all business miles
Transfer money from your business account to your personal account for your personal expenses
Pay your renewal fee with the Department of Commerce every year
Don't try to do your own payroll. (More than 80% of all IRS penalties are payroll related)
Don’t take the family to Disneyland and call it a business expense.
Don’t purchase vehicles in the business name unless they truly are 100% business use.
Don’t buy personal items out of the business checking account
Don’t pay for everyday living expenses directly out of the business checking account.
Never pay your mortgage out of the business account
Don’t ignore letters you receive from the Taxing Agencies
Don’t miss filing deadlines. Even if you can’t pay, it’s always best to file on time.
Don’t take money out of the ATM from your business checking
Don’t take cash out of your deposits
Don’t forget how important it is to meet with your accountant at least once a year.