Entrepreneurs often use personal assets as startup capital and rely on their personal credit scores to secure startup loans. Once their businesses are up and running, however, wise owners separate personal and business finances. One way to do that is to build a good credit score for the business so future capital can be borrowed by the business, not the owner.
KEEP SEPARATION
If a rookie business owner isn’t convinced about the necessity of keeping personal and business finances separate, it will become clear at tax time. Separating personal and business finances makes tax preparation simpler because expenses are easier to track.
