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Whether you decide to open a business checking account or a secondary personal checking account, you’ll want to review bank account fees.

If you are starting your own business, the IRS recommends getting a separate checking account specifically for managing business finances. But do you need to open a business checking account, or can you open a secondary checking account, instead?

We’ll explain the differences between business checking accounts and personal checking accounts so you can better understand your options and which next step to take in your business.

Business checking vs. personal checking: At a glance

Business checking accounts and personal checking accounts have two major distinctions: these accounts have different features and opening requirements.

A business checking account is specifically geared toward business owners. As a result, it may offer a greater sense of protection and professionalism for people managing business expenses.
A personal checking account is used for everyday finances. While it may be easier to set up and open than a business checking account, you generally won’t have access to many business features.

What is a business checking account?

Business checking accounts are designed for business owners and are available at brick-and-mortar and online financial institutions.

You will need business documentation to open up a business checking account online or at a branch. For example, if you have a partnership or corporation, you’ll need to have your employer identification number (EIN), business license, and any important business documents that specify partnerships, business, and operations agreements. Like with a personal checking account, you’ll need to bring two forms of government-issued IDs and proof of address to verify your identity.

When you open a business checking account, you’ll have access to additional business banking features at financial institutions. Many banks offer merchant services, which allow you to accept credit cards, debit cards, or mobile payments as payment methods. You’ll also be able to apply for a business line of credit, which could be worth exploring if you have an emergency and want to keep your personal finances separate from your business.

Quick tip: With both business and …read more

Source:: Business Insider


Business checking vs personal checking: What are the differences?

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