Starting Your New Car Wash Business – Why Separate Personal Finances
The car wash industry is booming, making it a rather safe bet for investors right now. However, that doesn’t mean you should have your business and personal assets tied up together. Here are 4 things you can do to separate your business and personal finances.
#1: Don’t Use Personal Funds for the Business
When you use your own personal money for business capital, you open the door for the IRS to look into your personal finances as well as your business. Borrow capital for the business in the company’s name only. Have company cards. Don’t use your personal credit card to buy business equipment. This helps to isolate what belongs to your personally and what belongs to the company both when it comes to assets and liabilities.
#2: Carry Business Liability Insurance
Don’t carry personal insurance to protect your business from liability or to insure the building or equipment. Separate business insurance can protect your business without affecting your personal premiums.
#3: Incorporate Your Business
Forming your business as a limited liability company (LLC) rather than a sole proprietorship helps to ensure that your personal assets are not affected if something goes wrong with your business. Granted, this won’t offer protection if you were to do something against the law, but in the case of an unexpected economic turn, you don’t have to worry about the company’s creditors going after your personal home or vehicle.
#4: Play by the Rules
As noted above, breaking the law can bring your personal assets into play no matter how covered you think you may be. Honesty really is the best policy when it comes to business dealings. Avoiding any sort of fraud or negligence will ensure that no one can go after your personal assets in court.
Enjoying Your Share of Car Wash Business Profits
If you play your cards right, a car wash can be extremely lucrative. So separating your personal and business finances doesn’t mean you get stuck without enjoying your fair share of the profits. The primary thing is that your personal assets are kept separate and safe.
To increase your chance of hitting it big in the car wash industry, partner up with Car Wash Pro Designers for modern car wash design and construction that helps lead to success. With our experience in your corner, your investment can reap rich rewards.