The background to get to the question:
I started a new business recently at the beginning of this September 2020. I just received my Tax ID and opened up a business account so it's legit! Note I have been receiving $ for the work prior to opening up the legit tax ID business since January 2020. For those 8 months prior to opening the business I have been placing those funds directly in my personnel checking account and paying bills and any excess if very good I would just transfer the remaining into my personnel savings.
What should do with that Pre-Business related Income.
Option (1)Back track all the payments to my checking account and transfer that amount into the new business accounts?Option (2) Other options I am not aware of someone can mention that makes sense to do.
As a New Business Owner, I don't want to get caught by the tax man doing funny stuff so I am still a legit business starting off on the right foot?
Note I am listing myself as a "sole proprietor" under an LLC