Hey Community!
New sole proprietor here. I have a question about transactions between my professional and private accounts. I understand that you can transfer money from your professional account to your private account, and that money is considered income. But can you do the reverse? Suppose I want to make a purchase for my sole proprietor but don’t have the funds to do so. Can I transfer money from my private account to my professional account?
No, that's not really correct. Transactions from your private to your professional account and vice versa are not considered income in a sole proprietorship. There is no difference between your professional and private assets in a sole proprietorship. This is because a sole proprietorship is actually part of your person and is not a separate legal entity like a company is.
You do not even need to have a separate account as a sole proprietorship. The only advantage this may have is that the tax authorities will only look at that bank account and not your private account. I read all this in these articles from the learning center:
https://dexxter.be/professionele-rekening-openen/
https://dexxter.be/een-eenmanszaak-starten-wat-met-het-startkapitaal/
You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.
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