Bookkeeping and accounting services for DFW's small businesses.

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Do I need separate books for each business?

Yes. Each legal entity needs its own bank accounts and separate books. Mixing entities creates tax problems and pierces the liability protection that separate companies are supposed to provide.

If you have two LLCs, each LLC needs its own QuickBooks file, its own bank account, and its own tax return. Transactions between the entities need to be documented as proper loans or payments for services.

Mixing books means you can’t track which business is profitable. You also risk losing liability protection if you treat separate entities as one business. Courts can pierce the corporate veil when you ignore entity separations.

Some business owners use one entity for operations and another for real estate or intellectual property. Each entity still needs separate books even though you control both. Your CPA needs clean separation to prepare accurate returns.

If you’re starting multiple businesses, work with someone who can help you set up proper structures from the beginning. Separating mixed entities later is expensive and complicated.

More Questions

What is job costing?

Job costing tracks all costs associated with a specific project or job so you know if that work was profitable after accounting for materials, labor, and overhead.

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What is the difference between bookkeeping and accounting?

Bookkeeping records transactions. Accounting interprets those records to help you make business decisions and file taxes.

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Do bookkeepers do taxes?

Some bookkeepers prepare tax returns, but most focus on keeping your books clean so your CPA can file your taxes efficiently.

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What records do I need to keep for my business?

Keep all receipts, invoices, bank statements, and contracts. The IRS requires documentation for every business expense you deduct.

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What is payroll tax?

Payroll tax is the federal and state taxes you withhold from employee paychecks and pay on wages. This includes Social Security, Medicare, unemployment, and income tax withholding.

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What is the best bookkeeping software?

QuickBooks Online is the standard for most small businesses. Xero works well too. The best software is the one your bookkeeper knows and your accountant can work with.

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