If you’re thinking about starting a business or recently started your own business, one of the first decisions you’ll be faced with is whether to open a business bank account or not.
Many small business owners use their personal checking accounts, credit cards, and debit cards during the initial start-up phase. But as your business grows and expands it quickly becomes apparent that “co-mingling” business banking with personal banking has some serious limitations and liabilities.
There are many other reasons to have a business bank account including the ability to accept credit or debit card transactions while also simplifying accounting and tax reporting. Plus, having customers send money to business versus your personal bank account makes you much more legitimate in their eyes. Having a separate business bank account makes accounting easier, makes you look professional, and provides security in the event of a tax audit or lawsuit.
Thanks to government regulations, setting up a business account is more involved than getting a personal checking account at the local bank or credit union. Plus, many banks require a personal credit score that may be unattainable for many small businesses or side-hustle entrepreneurs.
These banks have your back. Check it out.Open an account today!
Opening a business bank account is one of the most important things you can do when starting a company. A business bank account can play a key role in growing your business while protecting it and yourself at the same time. It allows you to keep track of business expenses, simplify tax reporting, and deposit payments under your company name.