Do I NEED a business account
I have a small business that I am starting up. Right now I bank with USAA, but they do not offer a "business" account.
So can I just open a separate checking account with them to use, or are there regulations/rules/tax reasons/liabilities I am missing by not using an actual business account?
If you are running this business as a sole proprietor and using your personal checking account you are opening yourself up to personal liability for your business affairs.
You should incorporate your business or set up an LLC and have bank accounts in the name of the company. If anything happens and your company gets sued or in trouble with the IRS they can only seize assets of the company and not your personal assets.
Separate fo sho.
The bank will allow you to print anything you want on your checks.
You dont need a "Business" account, just a checking account with either your NAME and 'dba' business NAME
or just the business.... either way, its just a checking account.
Originally Posted By RustyPelican:
If you are running this business as a sole proprietor and using your personal checking account you are opening yourself up to personal liability for your business affairs.
You should incorporate your business or set up an LLC and have bank accounts in the name of the company. If anything happens and your company gets sued or in trouble with the IRS they can only seize assets of the company and not your personal assets.
This.
Also, get two business accounts, your regular checking account, and a sweep account whose only purpose is to accept incoming electronic payments and push them immediately to the working account.
Get a consumer checking account with your business name on the account. The only thing you can not do is get a consumer savings account in the biz name.
I use 2 of them, no need to get into commercial accounts.
By the way, the bank still "sees" me as a business account. I just do not pay all the fees associated with it.
This.
Also, get two (consumer) business accounts, your regular checking account, and a sweep account whose only purpose is to accept incoming electronic payments and push them immediately to the working account.
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you can set up a sweep account from a consumer checking account, Just be careful of the "costs". I found that the interest gained was off set by the charges from the bank.
