Setting up business banking

The single most important administrative task for a new self-employed person is separating business and personal finances. Doing this preserves your legal liability protection if you have an LLC, makes taxes dramatically easier, and gives you actual visibility into whether your business is profitable.

Minimum viable setup

1. Business checking account. Most banks require an EIN and articles of organization if you're an LLC. Sole props can usually open one with a DBA and social security number.
2. Business savings account for taxes. This is where the 30% of every payment lives until quarterly estimated taxes.
3. Business credit card. Same separation principle as checking, plus rewards. Capital One Spark and Chase Ink Business cards are both common starter options.
4. Bookkeeping tool. Wave (free), QuickBooks, Xero, or just a very disciplined spreadsheet.

The EIN

An Employer Identification Number is a tax ID for your business, separate from your Social Security number. It's free, takes 10 minutes to get from IRS.gov, and is required for most business bank accounts, payroll, and tax filings. Get one even if you're a sole prop — it means you can give vendors your EIN instead of your SSN on tax forms.