![]() ![]() Regardless of whether you set up an LLC, Corporation or Partnership, maintaining a business bank account will help you avoid unnecessary hassles.įor example, using a separate business account makes it much easier come tax time, as you will need to file your business income and expenses separately from your personal transactions. It doesn't matter if your business is run out of a home office, strictly Web-based, or is a "brick and mortar" location, a separate business account has its advantages. When you do business as a corporation, if the corporation gets sued, your personal assets should be protected from liability, but there are some exceptions.īut, if you mingle your finances, a court can potentially go after the individual running the company because it looks less like you're running a separate entity and more like you and the corporation are one and the same. The bottom line: the courts consider the corporation a separate entity from the individuals who own it. When you set up an LLC or a corporation, one of the primary advantages of doing so is the legal liability protection it affords you. Most banks now offer free business checking accounts so cost shouldn't be an issue. ![]() In fact, one of the first steps to owning a business should be opening a business bank account, in addition to a personal bank account. Yet, business owners still make the mistake of using a personal bank account for their business.Īlthough having two bank accounts appears inconvenient, you shouldn't use a personal account for your business finances primarily because it can affect your legal liability. Whether you work from home or own a multi-million dollar company, there are numerous reasons to separate personal and business finances. ![]()
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