Establish a Business Bank Account
I chose to establish a business bank account for my new brand for two reasons: I needed an easy way to keep track of all of the money made and spent for business purposes, but more importantly, I needed a simple way to keep all business expenses separate from my personal accounts. Not only is this relevant during tax season, it really makes day to day life a lot easier.
Not knowing anything about starting a business account, I made my way down to our local bank to ask all the important questions. As it turns out, to start a business account, you must have a business licence. Instead, we were advised that the best choice in our situation would be to open a sole proprietorship account. In short, this means establishing ourselves as a small business, which we learned was a common choice for most working artists.
Fortunately, a sole proprietorship can be operated the same way as a business account. Understanding this, we decided to open one under the name of my new brand, “Dan’s Wife Avery.” This way, checks can be made out to myself, my husband, or to the band name itself, and we have the same freedom when signing for expenses or depositing checks.
Since opening our business account, all money generated through our brand has been deposited there, and all business expenses we’ve had (gas, music stands, strings), have been paid for with the band account. At the end of the year, my hope is that it will be easy to keep track of “write-off” expenses for tax season by managing our band funds in this way.