Business Vs. Personal accounts

[goat640]

I will start off by saying that I have had my own tree business for about a year and a half now, I work for another tree company during the week doing utility trimming and do residential for myself. I have been contemplating going full-time on my own but it is a big leap for me. Most of the money from the business ends up going to personal bills. Therefore I haven't been separating the money into a business account I just use it where I need it. I know I should be separating it but it is very hard. Does anyone else do it like that?

I was just wondering about the pros and cons to doing it that way opposed to say.......putting the business in my wife's name and giving myself an actual paycheck from the company. I already pay into unemployment and everything through my normal job. Would it be worth paying twice??

 

[TreeServiceMana]

The most important reason for keeping expenses separate is so you can better track your profit-and-loss and determine how much it costs to run your business. Either learn how to use Quickbooks or find a local bookkeeper who can do it for you.

There's 2 ways to run a company. Either as a sole proprietorship or as a corporation. If you're a one man operation either will work for you but as soon as you start hiring employees you should incorporate. You should consult an accountant about this.

There's really no reason to open the company under your wifes name unless you have tax problems. As for unemployment you'll have to pay into it regardless.

 

[911crash]

when i started out about 90% of money from business went to business, my full time job paid my everyday bills it was difficult but worth it in the long run. if you plan on doing tree work full time, only the discipline you have now will make it easier when you have a pocket full of a cash in your pocket and wanting to buy that special toy you want or think you deserve but instead saving it to pay those winter bills when jobs aren't there everyday will prove less stressful

 

[Canyonbc]

Treeservicemana...

Hit it on the nose and hard...

I use quickbooks, i just went to staples and bought the $90 dollar one..but i am a one man show (college student at Sonoma State Univ.)...it makes everything really easy.

Being just me sole prop. is the easiest...

But treeservice is right...get a llc or inc...if you hire...i looked into to it..lot of reading and almost used Legalzoom.com

i am sure there are tons of other "places/people and internet sites" out their beyond Legalzoom that can help you if that is your choice.

 

[woodchux]

Get a business checking account, deposit ALL of your business income into this account. Makes it easy to keep track of, and builds your business's credit up.

 

[goat640]

I have been using quickbooks to do my accounting as far as paying my emplyees,vendors,and keeping track of income. I was wondering if I go full time on my own and times get slow, If I am paying into unemployment as an employee instead of the owner could I get laid off by my wife who would own 51% of the company?? Whereas right now I do not pay unemployment ins on myself because I am the owner.

 

[Canyonbc]

Um, i dont no the answer to your question there

but i am the owner and operator of the business the only one...i am employed, and a college student. i too use quick books to seprate everything..

i one day want to go full time but it hard when your taking 18 units at the university

 

[TreeServiceMana]

I have been using quickbooks to do my accounting as far as paying my emplyees,vendors,and keeping track of income. I was wondering if I go full time on my own and times get slow, If I am paying into unemployment as an employee instead of the owner could I get laid off by my wife who would own 51% of the company?? Whereas right now I do not pay unemployment ins on myself because I am the owner.

I'm assuming you mean you'll be collecting unemployment while still working? If that's the case then no. If you're actually not working then yes, you could collect unemployment.

 

[Canyonbc]

Just Wondering...

How much money do/want you have to set aside each month...for unemployment, like this????

 

[goat640]

Say you would only have one small job in this particular week which would be about $400. Plus you have an employee besides yourself to pay and fuel. Would you be better to put it off for a week or 2 and let business build up to where you would have a few jobs and collect unemployment for that week or go to work and do the one job and only make say $250 profit?? Just wondering if anyone has been there??I am not meaning collecting unemployment and working, just letting business back up a little.