Girl, You Need a Business Bank Account
Your business needs 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.
Here’s why it’s key…
1. It Saves You Time
It's so much easier to keep all business income + expenses in one place.
When it’s time to file business taxes, you’ll want to have it separate so you can calculate how much you spent on your business.
Trust me, that gets messy when you keep it all together.
So make things easy on yourself and set up a separate account.
2. It Keeps You Protected
When you register your business as an LLC or Corporation, you create a legal separation between you and your business.
This means you won't have to use personal assets to pay business debts.
But to keep that protection, you have to use a business bank account.
Otherwise, your personal bank account, house, and car could be used to pay your business debts, contracts, and lawsuits.
If you want your business to be separate, you have to keep your money separate.
3. How to Keep Your Money Separate
You need to keep business + personal separate to keep your limited liability.
You should have business sales and expenses go into the business account.
Any personal income, like a salary or wages, should go into a personal account.
You shouldn’t pay personal bills directly from the business account.
And you shouldn’t pay business bills from the personal account.
How to Take Out Money
Pay yourself weekly, bi-weekly, or monthly by transferring it from the business account to your personal account.
4. How to Open 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.
Wait until your DBA or LLC is official because they'll need that information.
5. What Type of Account to Open
Look at the number of monthly transactions for your current account.
Many business accounts have minimum or maximum deposit or transaction thresholds that you have to meet to avoid penalties.