any people believe owning a business means you run a corporation, you own a store, or something along those lines. However, you are also technically a business owner if you’re in a solo profession. Freelance writers, rideshare drivers, and artists are also business owners, and opening a business bank account can do wonders for you.
You Are a Business Owner
There are roughly 1.5 million to 2.5 million Uber drivers in the U.S., as well as about 2 million Lyft drivers (possibly globally). In addition, Americans spend more than 1 billion hours a week freelancing. These statistics go to show just how prevalent both of these industries have become to the U.S. economy. And if you fall under either of these categories, you’re a business owner who needs a business bank account.
If you work as a freelancer, whether for a ride-sharing app, or as a wedding photographer on the side, or any other side hustle, you’re classified as a small business. Unless you've formed an LLC in your name, you fit under the sole proprietor category, which means all of your business venture’s profits and losses are tied to you. And if you’re a small business owner, it makes sense to get a business bank account along with it.
Benefit 1: Separate Business Account from Personal One
One of the benefits of getting a business bank account is that it gives you the ability to separate your business finances from your personal ones. This is an advantage that probably resonates with you if you are a freelance writer, or if you drive passengers for Uber or Lyft.
By having the two elements separate, it is easier for you to tell which funds should be used to pay for personal expenses such as rent, utilities, and groceries. Naturally, this situation also means that you know what money goes to pay for your business expenses such as fuel for your vehicle, or art supplies for your freelancing venture. Here are 7 reasons to keep your business and personal banking separate.
Benefits 2: Taxes Are Easier to File
As we already established, a business bank account makes it easy to separate your business and personal expenses. And if you do separate the two, it helps you file for your taxes more easily. Why? Think about all the times you’ve had to examine your annual bank statement, go through your transactions, and figure out which are related to your driving or freelancing business. It can be painful to go through this process when you’re looking at them one by one. With a business bank account, all your work transactions are in one place. And if they’re all in one place, filing your taxes is easier.
Benefits 3: You Appear More Legitimate
Another big advantage of getting a business bank account in these jobs is that it makes you appear more legitimate. What does this mean? You will be seen as more of a professional when you are receiving and sending payments as a business owner. In the freelancing world, a business bank account will make your life easier, and show clients that you take both your craft and business as serious as the work you do.
When you get a business bank account, you are in a better position to succeed in your job. Whether you’re a freelance writer, an artist, or a rideshare driver, this account makes life easier for you. It will simplify how you do taxes, make you appear more legitimate, and help you keep your business expenses separate from your personal ones. If you’re driving for a ride sharing app, freelancing, or working as an artist, see why Novo is preferred for freelancers and rideshare drivers.