Frequently Asked Questions

First, select your legal entity structure. Solo operators typically choose a single-member LLC. Next, verify your company name availability with your state. Finally, file your Articles of Organization with the Secretary of State.

The IRS allows solo LLCs without employees to use an SSN. However, commercial banks require an EIN to open business accounts. You should obtain an EIN. The IRS issues them online for free in minutes.

Open your business checking account immediately after receiving your EIN. Never mix personal and company funds. Commingling money pierces your corporate veil. That mistake exposes your personal assets to business liabilities.

No. Any tool that generates standard financial reports is sufficient for tax filings. You need a clean General Ledger, Profit and Loss statement, and Balance Sheet.

Free spreadsheet templates are the cheapest initial option. Wave provides another free entry point for basic invoicing. Paid platforms like Xero Early or FreshBooks offer good value as transaction volume expands.

Owners frequently cite recurring subscription price increases. Others dislike complex menus designed primarily for accountants. Slow customer support is another common reason.

Single-entry records income and expenses once, similar to a checkbook. Double-entry records every transaction across two accounts as debits and credits. This balances your total assets against liabilities and owner equity.

Reconcile your accounts at least once each month. Perform this review as soon as your monthly bank statements close.

Yes. Solopreneurs can manage routine monthly records using standard software. You can hire a CPA once a year for tax return preparation and filing.