Opening a Business Bank Account

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For tax and accounting purposes you will need to open a separate business bank account for all your business transactions.  You can run both your business and personal accounts together, but it gets very, very confusing and can make bookkeeping and doing your taxes close to impossible. It can also make documenting your income and expenses much harder if you ever get audited by the IRS.  The best option is to open a separate account.

You will want to look for a business checking account so you have checks that you can use to pay your bills. Since many of your business purchases will be done online, it is also a good idea to look for an account that provides a debit Visa or Mastercard along with the account. That way you can charge your supplies and subscriptions online directly to your business account. Be sure to spend some time shopping around at different banks to see what options are available to you for a business account since fees, minimum balances and other features can vary widely from one bank to another.

When you need to get paid, you will write yourself paychecks from your business account to cover your salary. The money that remains in your business account after you have been paid then is used to operate and grow the business.