Dos and Dont's for Business Owners

Updated: Jan 18, 2019


DOs

Keep track of all income and expenses

Have all subcontractors fill out W-9’s before paying them

Issue 1099’s for all 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

Pay yourself a fair wage subject to self-employment tax during a calendar year (S-Corporations only)

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 $20 renewal fee with the Department of Commerce every year


DON'Ts

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.




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