A side hustle can be a great way to earn extra income, but it can also cause problems if you’re not careful. One of the biggest issues is taxes, which can be a real surprise if you’re not prepared. That’s where a business bank account can help. Here are six signs that you need a dedicated business account:
- Consistently making money from your side hustle
- Needing the extra money to pay for day-to-day living expenses
- Wanting to have money for discretionary spending
- Wanting to have more savings
- Wanting to pay off debt
- Thinking your side hustle will develop into your main source of income
A business bank account can help you separate your personal and business finances, simplify tax filing, and display a professional image to clients and customers. To open an account, you’ll need to research different banks, gather required documents, visit the bank or apply online, deposit initial funds, and await verification and account activation. While a business bank account may come with additional fees and involve more documentation and stricter criteria to open, it offers access to business banking services, like business loans, and adds professionalism and credibility to a side hustle.
Source: Yahoo Finance