Starting/ Investing in small business?

[STEVE-O]

Just a few questions.. ( For anyone with personal experience)

1: Is there any advantage/ dis-advantage(s) to opening up a business account at a bank or credit union?

 

2: If you have started your own business where is the FIRST place you start? Name? register your company etc etc..

 

3: Is more twords the investing part... has anyone invested in a starting company or started their own company with investments??

 

 

I have a small amount of money saved and have been investing in myself so to speak and doing ok but would like to try and move onto something a little bigger. Any imput is a great help as yes I am young and the vast majority of people on here have either been there or done that and many on here seem very sucessful.

[twistedfocus1647545489]

1: Is there any advantage/ dis-advantage(s) to opening up a business account at a bank or credit union?

 

Can't answer that because with mine I'm just using my personal account. I have no employees.

 

2: If you have started your own business where is the FIRST place you start? Name? register your company etc etc..

 

Yes, start by registering your business name. You'll need to decide what business model fits you best. For me it was a Sole Proprietorship, but you may need to do an LLC or something else.

 

3: Is more twords the investing part... has anyone invested in a starting company or started their own company with investments??

 

 

I have a small amount of money saved and have been investing in myself so to speak and doing ok but would like to try and move onto something a little bigger. Any imput is a great help as yes I am young and the vast majority of people on here have either been there or done that and many on here seem very sucessful.

 

Also can't really comment here, I guess, because I only needed to register a name and the rest I was just advertising and trying to find a client/clients. This is specifically for a consultation gig I'm doing. I had no other expenses because I already have a home office and all of the equipment, which is a shame because I can't write off the purchase price of any of it now.

Comments in quote.

[thorne]

I tried to get investments for a visodence and even got pretty far in the process. The issue I was running into was that the competing projects where all biomed.

 

 

Good luck it's not easy but if you can pull it off fullfilling

[STEVE-O]

jason this is what I am doing now is my investing from my personal account. my biggest issue is I have looked at houses etc and they check about three months back on my statements. Well who would ahve thought (joking) that they dont really like to see big transactions of well will say just use $1000 withdraws and then maybe two weeks later a deposit of $3000. Everything is legal and legit but for obvious reasons they dont like big transactions like this with so to speak no paper trail. That was my main reasoning as if these transactions took place in a business account would it be better than having them in a personal account?

[twistedfocus1647545489]

jason this is what I am doing now is my investing from my personal account. my biggest issue is I have looked at houses etc and they check about three months back on my statements. Well who would ahve thought (joking) that they dont really like to see big transactions of well will say just use $1000 withdraws and then maybe two weeks later a deposit of $3000. Everything is legal and legit but for obvious reasons they dont like big transactions like this with so to speak no paper trail. That was my main reasoning as if these transactions took place in a business account would it be better than having them in a personal account?

 

I'm certainly no pro on the banking part but I can tell you a friend of mine worked as a contractor, similar to what I'm doing now but his tax guy had him set up an LLC with its own bank account so that he can pay himself out of that account and any "business" withdraws have no reflection on his personal situation. I think it also works out better for tax purposes but I don't recall why.

 

Your best bet is to sit down with a pro. This is my first year, so I may regret doing a SP over an LLC when tax time comes. At least in my case there are no expenses coming out, only deposits.

[twistedfocus1647545489]

Also, once you're approved for a home loan - buy my house!

 

 

 

 

:gabe:

[TTQ B4U]

Just a few questions.. ( For anyone with personal experience)

1: Is there any advantage/ dis-advantage(s) to opening up a business account at a bank or credit union?

 

Cash flow. I have a small line for my photography business and it allows me to cover my any related expenses up front.

 

We also use a line of credit we have for our property investment company and needed cash flow for repairs and improvements we were making. Items that are easily recouped without having to take an equity loan.

 

When running a business and paying employees and making purchases, it's nice to have a rolling line of credit. That is if you have the income coming in to pay it back. My wife couldn't have run her law practice as profitably and efficiently without it.

 

2: If you have started your own business where is the FIRST place you start? Name? register your company etc etc..

 

Name and register it. LLC is what we do. Make sure you separate your business from your personal. This way if the incorporation is sued, there are provisions in the law to protect you as the owner from personal liability.

 

If this is your sole business you can also take out other benefits against the corporation such as medical insurance, pensions/investments. We also write off business trips and entertainment against our LLC's. We do at least one per month

 

There are tons of benefits of forming an LLC. Google will be a good start.

 

3: Is more twords the investing part... has anyone invested in a starting company or started their own company with investments??

 

Good luck. You'll have to show you have something worth investing in. We aren't pursuing anything like this as it's not as relevant to our businesses, but more than that, we don't want any partners.

 

I have a small amount of money saved and have been investing in myself so to speak and doing ok but would like to try and move onto something a little bigger.

 

Need more information. What are you doing now and what do you want to move into? What's bigger mean?

 

Any input is a great help as yes I am young and the vast majority of people on here have either been there or done that and many on here seem very successful.

 

School of hard knocks for some but it can be done. Controlling your own destiny is great but you have to have a plan. Work with your mentor/business planner on that first as once you define your goals you can more easily put a plan in place to achieve them.