This article is part of a 10-day challenge designed to help mompreneurs start a business. To start the challenge, visit Mompreneur Bootcamp.
Under the Mattress?
It’s time to find a place to stash all the cash you’ll be generating!
If you chose a sole proprietorship instead of LLC, it is not super important to have separate business and personal financial accounts – but I strongly recommend it . Eventually, you should move up to an LLC, and it will be much easier to transition if you already have the financial accounts set up early on.
I’ve been saving this stage until near the end because it might take a while to get back your business registration paperwork from your state. This step generally requires a Federal Employer Identification Number (FEIN), and you can’t get that until you get this paperwork back – at least, for some states.
If you don’t yet have an FEIN, make sure to check out Day 3 of our training. If you already have your business identification number from your state, but don’t have an FEIN, go here and go to:
Set up a bank account
Go to your favorite bank company and create a bank account for your company! You’ll need your FEIN for this. Big corporate banks give free checking, but they require a large minimum balance. If you have the ability to use a credit union, those tend to have no minimum or a much smaller minimum – and also with no fees.
I found it best to walk into the bank and do it in person. Doing it over the internet requires a lot more validation, and I’ve had a bank screw up a lot of paperwork and cost me many weeks of my time. On the other hand, doing it in person can complete your registration in a single day.
Setting up the other accounts
After you get your bank account set up, it’s time to set up your other accounts that you may want to use for financial transactions.
Here are the types that I set up:
- Credit card for purchases
- PayPal
- Venmo
And with that, you’re now ready for the final step:
Homework Assignment
Based on what you have learned in this article, create one action item to do something new for your business and write it down in your MOMPRENEUR JOURNAL! Then do it! Focus on one little action item at a time and soon, your business will be booming!
What's the next thing to learn? I cover it all here - browse through and find an article to read!
You got this, mama!
