What is the top MISTAKE I made starting my own business?
The top failure I made as a beginner entrepreneur was that I did not register my company as an LLC (Limited Liability Company) or a corporation.
And so all my expenses and taxes were mixed and mingled with my husband’s taxes, my personal taxes, as well as with everything that I spent personally. And now, as a more advanced serial entrepreneur, I absolutely think you should be running your business completely separate from your personal life, especially in terms of finances.
In fact, you should be running most of your life on business finances.
Here are some top tips:
Open up credit cards as your businesses. Your business can establish credit on its own and you can then use that credit to expand your business.
Create an LLC
Register an LLC and understand that you must register your business in the right entity. That was one of the biggest lessons learned because. I could have saved myself time and money on taxes if I had not commingled my expenses and if I had been much clearer with my numbers. It’s like a different baby, a totally different baby to what your personal life is.