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Started By
Message
Business account vs extra personal account
Posted on 12/27/23 at 12:29 pm
Posted on 12/27/23 at 12:29 pm
Starting up a small side business. Don't expect a ton of revenue any time soon, but want to keep finances organized. I have a separate business card for it, but curious about the need for a business specific account vs just an additional personal checking that I use for the business.
Are there advantages/requirements around it specifically being a business checking account? The chatter I have read so far is "banks don't like if a personal account is used as business. Have the local credit union identified I would work with if needed, just want to make sure I"m not adding effort if not needed.
Are there advantages/requirements around it specifically being a business checking account? The chatter I have read so far is "banks don't like if a personal account is used as business. Have the local credit union identified I would work with if needed, just want to make sure I"m not adding effort if not needed.
3
Posted on 12/27/23 at 1:34 pm to Thundercles
Are you going to form an LLC or S -Corp? If yes I would for tax purposes. If you are going to be a sole proprietor I would ask your CPA.
Posted on 12/27/23 at 1:37 pm to Thundercles
I just went to IRS site and requested an EIN for my LLC. Regions then set up a separate business account under my personal account using the EIN. I access both with one login but they keep separate statements and records. Only thing I do is tell them which account to put checks in when I deposit. Pretty easy.
Posted on 12/27/23 at 1:50 pm to XenScott
quote:
Are you going to form an LLC
It'll be an LLC at some point in the next year.
Posted on 12/27/23 at 7:01 pm to Thundercles
I’m not sure what you mean by not a ton of revenue, but generally speaking you should 100% have a business bank account 100% of the time. As in, unless you are just selling $1,000 of crap on eBay you should have one.
It’s going to cost you time and effort as far as taxes, cpa probably, etc. so if you are going to start a business and do it right keep all of those in mind.
You should transfer a set amount of personal funds into the business account when you start and then pay 100% of your expenses out of that. So that you have a place you started and transactions for 100% of what you’ve done.
It’s going to cost you time and effort as far as taxes, cpa probably, etc. so if you are going to start a business and do it right keep all of those in mind.
You should transfer a set amount of personal funds into the business account when you start and then pay 100% of your expenses out of that. So that you have a place you started and transactions for 100% of what you’ve done.
Posted on 12/27/23 at 11:49 pm to Thundercles
If you are going to be an LLC then you will need to get a tax ID number and open a separate business account. If you don't and you comingle business assets with your personal assets, you are opening yourself up to personal liability if the LLC would ever get sued. You would make it easy for creditors to "pierce the corporate veil" and come after you personally which defeats the purpose for forming the LLC in the first place. .
Posted on 12/28/23 at 9:07 am to baldona
quote:
I’m not sure what you mean by not a ton of revenue, but generally speaking you should 100% have a business bank account 100% of the time. As in, unless you are just selling $1,000 of crap on eBay you should have one.
It’s going to cost you time and effort as far as taxes, cpa probably, etc. so if you are going to start a business and do it right keep all of those in mind.
You should transfer a set amount of personal funds into the business account when you start and then pay 100% of your expenses out of that. So that you have a place you started and transactions for 100% of what you’ve done.
This is the common sense straight talk I was looking for.
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