I’m opening up a private therapy practice and will be opening up a business bank account beforehand. I have some questions and appreciate any insight.
1. If I don’t touch the business bank account for the first six months or so, will I be penalized down the line?
I wondered if I don’t touch the business account, that it could look like I don’t have expenses and am only accruing profit, when I would simply rather live off my savings in the beginning and allow the business account to grow
2. When it comes time that I do need to start paying myself, what are some ways that sole proprietors do this? Will my taxes change depending on how much I pay myself?
3. Can I choose to incorporate in the future in a state without income tax and only pay federal taxes? Or if my clients are located in a certain state, will I need to pay taxes to that state regardless, in which case I’m not sure there would be a benefit to incorporate elsewhere
4. Would also appreciate the most simple explanation of what tax deductible means
