Girl, You Need a Business Bank Account
Does your business have a separate business bank account?
It's a detail so small, you may have overlooked it.
But it’s actually a BIG step in setting up your business legally.
Reason #1. $$
It saves you when it comes to taxes.
It's so much easier to keep all business income + expenses in one place.
Plus, if you get audited, the fact that you have a separate business account can prove that your business is real. This is huge because if the IRS determines that your business isn't real, then you don't get to claim all those tax deductions. And that means you'll pay a lot more in taxes.
So make things easy on yourself and set up a separate account.
Reason #2. Keep Your Business Protection
When you register your business as an LLC or Corporation, you create a legal separation between you and your business. This is a good thing. It means you won't have to use personal assets, like your house, car, or bank account, to pay business debts, like a lawsuit, tax penalty, or contract.
To keep that protection, you have to use a business bank account.
Your business assets and personal assets need to be separate. If you mix your accounts, like putting website sales into your personal account or paying your home electric bill from your business account, you can lose that protection. And that means your personal assets are at risk.
Stay on the safe side and keep your money separate.
How to get a business bank account
You can take your state paperwork to the bank to get started. Try a local bank or credit union. The managers are typically more invested in the local economy and can tip you off to favorable business loans, community events, and partnerships.
What type of account to open
Look at the number of monthly transactions for your current account beforehand. Many business accounts have minimum or maximum deposit or transaction thresholds that you have to meet to avoid penalties.