Conner Marketing June 2017

The Separation of Business and Self

Why You Shouldn’t Mix Company and Personal Finances

to pay more in taxes than they need to, and creating a separate checking account will keep that from happening. It will also allow you to be more organized. Once you’re a little more established, you should consider making your company an official entity by creating a limited liability corporation, or LLC. As an LLC, your personal finances won’t be liable in the event that your company is sued. In essence, creating an LLC makes the line between business and personal definitive. Before filing as an LLC, be sure to talk to your lawyers and financial advisers to understand the intricacies of the structure. There are a lot of other ways to ensure that your business finances don’t end up where they shouldn’t belong (i.e., in your personal accounts). You can pay yourself a salary, for instance, rather than moving money from one account to another irregularly. Nav, a service for small businesses, will allow you track your business and personal credit scores separately, and its introductory tier is completely free. The bottom line is that whatever methods you use, separation is the road to clarity.

In 2012, the Merriam-Webster dictionary added the word “man cave” to its hallowed pages. Traditionally a room dedicated to sports, video games, or other “manly” pursuits, man caves have become a homebuyer’s must-have. So it’s no wonder the lady of the house has decided to create her own space. Introducing the she shed. Much like the man cave, a she shed is a place, usually a backyard shed, transformed into an oasis to pursue a favored hobby. Gardening or sewing are common themes; though, as with the man cave, the purpose of a she shed is limited only by the creator’s passions. Many she sheds serve as reading nooks, home offices, art studios, or just general sanctuaries of solitude. She sheds can boast elegant designs, often mimicking the style of an antique dollhouse or enchanted cottage. Thanks to the extra space man caves provide within a house, Stephanie Rauterkus, Ph.D., professor of accounting and finance at the University of Alabama School of Business, says a good man cave is able to improve the resale value of a home. Likewise, sheds tend to increase property value to begin with, but she sheds specifically are becoming more sought after thanks to the extra space they provide outside of the house, with the added Move Over, Man Cave! The Added Value a She Shed Can Bring to Your Property For many entrepreneurs, your business can feel like an extension of yourself. While this can be advantageous when it comes to building a personal brand and making connections with customers, there’s one area where it causes more harm than good: finances. Tangling your company’s finances with your personal ones can lead to confusion, bookkeeping errors, or worse. Sylvia Inks, author of “Small Business Finance for the Busy Entrepreneur,” advises separating personal and business expenses as the first step in building a solid financial foundation. “If you want to save time, have more money, and pay fewer taxes,” she writes, “take the time to open business bank accounts and associated credit cards to keep your personal and business dollars separate.” The earlier you can create this separation, the better off you’ll be. From a tax perspective, the easiest step you can take to legitimize your business in the eyes of the government is to establish separate checking accounts. "If there's ever a question as to whether it's a hobby or a business,” says Richard Salmen, a Certified Financial Planner® with GTRUST Financial Partners, “the IRS looks to see if you have a separate checking account." No business owner wants

benefit of replacing the drafty interior with a cozy design buyers will actually want to spend time in. Sellers looking to use their she shed to increase property value must keep in mind that too much

personalization is the enemy. Homebuyers want to picture themselves in a home, and just like how the custom, football-shaped crown molding can make a buyer say “No thanks” to your man cave, they might also be turned off by the lavender and fuchsia color scheme. Find a balance between useful and endearing without getting too artistic. When in doubt, stick with neutral colors and avoid adding anything that would be considered permanent. That being said, this new addition to the home is only growing in popularity, offering numerous possibilities and additional storage spaces, which can really help your property stand out from the rest.

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