Hey all,

I know that you should always have a separate account for your business - especially if you have an LLC. But I was wondering if you have a special "business account" or just a regular checking account. My bank doesn't offer any accounts geared toward businesses, but I could always open up a second checking account in my business' name.

Just curious if I should find somewhere with a business account (if this exists) or if I can get by with a separate checking account.

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Michelle
Virtually Effortless

Hi,

This is a great point your brought up. Many people still mix their business banking with their personal, which can hurt the credibility of their business being a separate entity if audited.

The account does not have to be designed for a business, but it should be in the name of your business. If you are the owner, you can still usually link it to your personal account for ease of transfers or "draws" to your self.

Remember... You should try not to spend on personal items from this account. I've found that linking it to a personal account for ease of transfer make it easier to avoid doing this.

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www.lloydbusinesssolutions.com
"Getting you back to what you do best"

My bank offers business accounts. I didn't realize that some banks don't. Learn something new every day. I don't think the account has to be a special business account; just that it is in the name of your business.

Have two accounts - one for business and one for personal. But it needs to go further than that. What bookkeeping system are you using? I use Quickbooks but there are others. I've set up classes in Quickbooks so even if I do use my business account to pay for something personal (as does happen from time to time) it is accurately recorded in Quickbooks as a personal item. The benefit of the two different accounts is that it lets me know what I've got that I can spend personally versus what needs to be kept for business payments.

Having two separate accounts helps a ton at tax time too...much more simple!

At the very least you should have a separate account for your business finances. This way there will be no blurring the lines on what is business and what is personal. If you bank allows, a regular checking account will do however some banks do not allow you to have your business name on any ole checking account. And others will not cash a check that is made out to the business on a personal account. So check with your bank manager, they can help you out.

I also agree with Kathie. Having two accounts is the beginning, it is the record keeping that is important. Keep track of what you have coming in and out as well as any personal items you purchased on your business account or visa verse.

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Lee Drozak
My Office Assistant

Thanks y'all!

One more question....

I bank with USAA, which is a bank geared toward the military. They're a little unconventional in that there are no actual branches or ATM's. Everything is done online. I wasn't all that surprised that they didn't have a business type account. For those of you who have opened a special account geared toward businesses, what bank are you with? I'm not opposed to opening an account with a different bank if they can offer me more benefits than a regular checking account in my business' name would.

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Michelle
Virtually Effortless