Hey there everyone. I have a situation that I need a basic solution for and I’m trying to figure out the best way to set it up.
I’ve managed to secure a $4500/month contract as a designer. While I’ve had some decent projects and clients over the years, this will be the first time I’ll have a consistent income from this.
Still researching things but what I’m trying to get figured out is:
- forming an LLC
- opening a separate business account
- opening a new credit card for expenses
And what’s making me a little more confused is, I’m hoping to save most of this money vs spend it. If my goal is to leave most of it untouched, how would that work with business expenses and write offs? Is there a simple “user flow” for this process and what steps I should take for each check?
Appreciate any insight or advice on how best to set this up. Still researching and will plan on hiring a tax professional moving forward, so I’m sure they’ll have their own advice as well.
As a designer, you’re providing a personal service. Very few cases where you’d need or benefit from an LLC. The LLC would just add cost without providing any of the benefit it does for other types of businesses. Sole proprietorship would be fine, just register it with your state according to their requirements so that you can get a bank account in the business name.
I think you’re conflating a few things here. If you’d like to leave the income untouched, just leave it in the account once you deposit it. Not sure why you think that has anything to do with expenses or write offs or there’s any particular process.