November 17, 2020
Tagged As: Business
At Hills Bank, we’ve done business with local entrepreneurs since before the Great Depression – and we believe helping to build businesses is one of the most important roles we have in the communities we serve. In honor of National Entrepreneur Day, here are three tips for business success.
1. Keep Business and Personal Funds Separate
It’s important to have distinct checking accounts for your business and personal funds. That’s because the IRS determines whether your endeavor can be classified as a “business” or a “hobby” based on your profitability. If you can’t clearly show profitability and are audited, the IRS may consider the lack of a business account to be a strike against your business. That means you could lose the ability to deduct business expenses on your taxes, which could be quite expensive.
2. Develop Relationships With Trusted Advisors
You don’t have to build your business on your own. Enlist the help of trusted advisors such as an attorney, an accountant, an insurance agent, and of course, a banker. Advisors like these have worked with other entrepreneurs, and can help you navigate the various processes involved in developing, operating, and maintaining your business.
3. Use the Resources Available to You
There are a number of helpful web resources* for local business owners, including:
- The Small Business Administration
- Small Business Development Center
- Iowa City Area Development
Have you seen our tips for starting a business? In addition to tips like these, be sure to keep an eye on hillsbank.com to find classes on financial management and other resources for business owners like you.
*These resources do not provide FDIC insurance for business accounts