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Getting set up with a business checking account, business credit card, and accounting software completely changed the way I do business, and I honestly wish I would have done it sooner.During my first year of self-employment, I'll admit I was flying blind. I made a lot of mistakes that year, the most costly of which was not getting my finances properly set up. When you're self-employed, you're running a business — even if it's just you.
Finally, if you registered as an LLC to protect your liability, intermixing your business and personal finances can demonstrate to a court that there isn't a clear line between the two, and someone could come after your personal assets more easily.
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