You can typically pay for various business-related expenses out of your business account, as long as they are necessary and ordinary expenses incurred in the ordinary course of conducting business.
Here are some common types of expenses that you can pay out of your business account…
Operating Expenses – These are expenses necessary to keep your business running smoothly on a day-to-day basis. This category includes:
Rent or lease payments for office space, retail space, or other facilities.
Utilities such as electricity, water, gas, and internet services.
Office supplies, including paper, pens, printer ink, and other consumables.
Equipment expenses, such as computers, phones, furniture, and machinery.
Insurance premiums for business insurance policies, such as general liability insurance, property insurance, and workers’ compensation insurance.
Maintenance and repairs for equipment, machinery, vehicles, and facilities.
Professional services fees, such as legal, accounting, consulting, and marketing services.
Travel and transportation expenses related to business trips, including airfare, lodging, meals, and rental cars.
Employee Compensation and Benefits – This category includes:
Wages, salaries, and bonuses for employees.
Employee benefits such as health insurance, retirement contributions, and paid time off.
Payroll taxes, including Social Security, Medicare, and unemployment taxes.
Tax Obligations – You can use your business account to pay various taxes owed by your business, including:
Income taxes (federal, state, and local).
Payroll taxes, including employer contributions and withholding taxes.
Sales taxes collected from customers (if applicable).
Loan Payments – If your business has borrowed money, you can use your business account to make loan payments, including principal and interest payments on business loans, lines of credit, or other forms of debt financing.
Professional Development – You can pay for training, education, and professional development opportunities for yourself and your employees to enhance skills and knowledge relevant to your business.
Marketing and Advertising – You can use your business account to pay for marketing and advertising expenses, including online ads, print ads, social media marketing, and promotional materials.
Miscellaneous Expenses – This category includes any other necessary and ordinary expenses incurred in the operation of your business that are not covered by the above categories. Examples may include membership dues, subscriptions, postage, bank fees, and charitable contributions.
It’s important to keep accurate records and documentation of all business expenses paid out of your business account for tax and accounting purposes. Ensure that you are only using your business account to pay for legitimate business expenses and not personal expenses, as commingling personal and business finances can lead to accounting and tax issues. If you’re uncertain about whether a particular expense is allowable, consult with a tax professional or accountant for guidance.