How to Avoid a Common Mistake of Home Business Owners

There is a definite roadmap to home business success. While most people are focused on Sales and Marketing, those are only two pieces of the puzzle. There are actually 5 key elements in creating a foundation of success for your home business. Today we’re talking about one small piece of the full roadmap… Preparation. Click here to download the full Home Business Success Roadmap for free.

One of the biggest mistakes that most home businesses are making is that they are not making their home business a completely separate entity. That may sound confusing but basically what that means is that they are not using a business checking account or business credit card for their business transactions. Instead, they are running everything through their personal checking account and credit card.

This is most prevalent with home businesses that are a part of a bigger company. For example if you are a consultant with a company like Arbonne, Mary Kay, Color Street, Young Living, DoTerra, Norwex, 31, Beach Body, Amway, etc. you’ll find that the majority of consultant, distributors, independent business owners fall into the mistake of using their personal bank accounts to deposit income and sales checks. And they are using their personal debit and credit cards to pay for expenses like stamps to mail customer receipts & welcome gifts, ink for their printer, plane tickets to a conference, and more. It’s a shame because this mistake can really put these business owners at risk as we’ll talk about in this video.

The good news is, there is an EASY fix.

• Set up an LLC for your company and get a free tax ID number for your business
• Open a business checking account and business credit card using your business name and tax ID number

It’s truly as simple as that! These two steps can easily be accomplished. When I setup my first LLC, I paid a company several thousands of dollars to do the work for me. What I learned after the fact was that I could create the LLC myself and it really wasn’t hard or time consuming at all! In fact, I can now set up an LLC, get a Tax ID Number, and create an Operating Agreement all in 30 minutes! At that point I’m ready to open up a bank account and credit card. If you want to save thousands of dollars and set up your own LLC yourself but want some guidance to make sure you do it correctly, I have a full course that will walk you through the steps of creating your own LLC and am giving it away as a free bonus inside my program 5 Minute Method for Bookkeeping & Tax Prep. Click here to learn more about how to set up your own LLC and get your bookkeeping done in 5 minutes.