Why You Should Open A Business Bank Account

Why You Should Open A Business Bank Account

Posted on 03. Feb, 2013 by in Archived Post

Opening a business bank account is essential if you are going to really get into the business thing. A business bank account is vital because it serves as a means of financial representation and identification, and it also gives you a secured place to keep your money. Personal accounts are good for regular savings but a business bank account can give you more.

The key function of a business bank account is to have a separate bank account for your business transactions and business expenses. It helps to allocate funds specifically for your business connected objectives and activities. With your business account, formally creating business ventures and business partnerships is going to be easy without the need to put your personal money at stake.

Business Bank Account Benefits

Opening a business bank is a good way to keep your passive income safe because it provides you with additional benefits than those you can have from a personal account.

Banks gives special promotions and discounts for business accounts. You can also have more opportunities to have better loan options because you are presumed to have the capacity to pay your dues on time.

Opening multiple sub-accounts is also a privilege given to business bank accounts. Credit card accounts are also easily attainable when you have a business account.

It is also easy to gain partnerships from bigger and more established businesses because your account means that you are a reliable and credible business person.

With a business bank account you can easily develop a good credit history, which will enable you to get approved for loans that you can use for your business growth and expansion. You can always use your credit history as a leverage to get loans and corporate credit cards from the bank.

Your business bank account is your professional identification. Your clients, partners and suppliers will know for sure that you mean business because you have been professional enough to acquire a business bank account.

Your business bank account is going to let you keep track of all your business financial transactions. This eliminates the need to get confused which usually what happens if you use your personal account for your business financing. Once you have mixed up you personal account with business transactions, there a good chance that you will completely lose track of which transactions are for business and which are personal.

With your business name and bank account, you can keep your personal details safe because you are not going to use them for your business transactions. If you run a business online, your clients can just deposit payments directly into your business account.

All in all, if you have a business bank account, all your personal money will be secured while all your business money is being kept in a separate place. This allows you to separately keep track of your business revenues and your personal expenses. You also get the chance to easily identify the risk factors if your business starts to look like failing.

Next Step: Visit your local bank or credit union and open a business bank account. It will typically cost you around $100 to open the account and be sure to bring your SSN or EIN (Employer Identification Number), your fictitious name statement, articles of incorporation or limited liability establishment paperwork.

Tags: , , , ,

17 Responses to “Why You Should Open A Business Bank Account”

  1. Paolo

    12. Jun, 2013

    I actually just opened a new account purely for business funding and freelance work. I also got the idea to open an account purely for health insurance in case of emergencies. And also a personal account where I get my pocket money.

    Separating your business and personal bank accounts are handy. Especially when avoiding theft or hacking online bank accounts.

    Reply to this comment
    • Big Dave

      Big Dave

      12. Jun, 2013

      I didn’t think about the theft and hacking. Good point……

      Reply to this comment
      • Paolo

        14. Jun, 2013

        I’ve experienced being hacked before in a site. My earnings were deposited and flushed clean from my account which was about $60 at the time. Not a big amount but it was such a waste.

        Reply to this comment
        • Big Dave

          Big Dave

          14. Jun, 2013

          Sorry to hear that….did you have a WordPress site? If so, I’m going to be doing an article on securing WordPress sites and hope to have that up in about a month. I really believe it’ll be helpful to some folks…..

          Reply to this comment
          • Paolo

            21. Jun, 2013

            Yes, I’m still starting out though. Compared to Blogger, I still don’t know all the features of WordPress. That would be of great help. Thank you!

  2. Alissa

    24. Jun, 2013

    I just opened mine yesterday!

    Reply to this comment
  3. Sky

    27. Jun, 2013

    I need to open a business account soon – I already fail at keeping track of personal vs business expenses and I know that’s only going to get worse! Might as well separate the money now.

    Reply to this comment
  4. Rebecca

    07. Jul, 2013

    I can imagine having a clear history of business transactions, expenses and payments would be helpful. I always like knowing how much is going out and what my expenses are as this gives me a better idea of how it will play out into the future.

    Reply to this comment
  5. Rebecca

    09. Jul, 2013

    I can imagine having a clear history of business transactions, expenses and payments would be helpful. I always like knowing how much is going out and what my expenses are as this gives me a better idea of how it will play out into the future

    Reply to this comment
  6. Taha ayub

    14. Jul, 2013

    is there any monthly charges for business account?

    Reply to this comment
    • Big Dave

      Big Dave

      14. Jul, 2013

      In most cases, yes….but some (such as USBank, PNC, and First Citizens) do offer free business checking accounts.

      Reply to this comment
      • taha ayub

        15. Jul, 2013

        How much they ideally charge per month? I want to open a free account initially, thank you for indicating banks , i will figure it out further

        Reply to this comment
        • Big Dave

          Big Dave

          15. Jul, 2013

          From what I’ve seen….$0 per month as long as you keep their monthly minimum balance requirements which is typically $100.

          Reply to this comment
          • Taha ayub

            16. Jul, 2013

            It’s perfect then 🙂 thank you

        • Hassnain

          21. Jul, 2013

          Yeah taha , you don’t need to pay fee per month when you gave desired money in your account but they will charged you when your balance get lower

          Reply to this comment
      • Zuri

        26. Aug, 2013

        I need to look into a business account with no/low monthly fees. Until I’m able to maintain a minimum balance in a business account, I don’t want to LOOSE money because of fees.

        Reply to this comment
  7. Charlotte

    26. Aug, 2013

    Separating business and personal expenses is something I will admit that I need to do right away. When doing last year’s taxes, I wasted so much time trying to pick out what was for business and what was personal in my bank statements.

    Reply to this comment

Leave a Reply

Copy Protected by Chetan's WP-Copyprotect.
Visit Us On TwitterVisit Us On FacebookVisit Us On Google PlusVisit Us On LinkedinCheck Our Feed