When determining if you need a business bank account it can be confusing with false information being spread online. To be able to answer the question “Do I need a business bank account“ there are only a few critical pieces of information you need to know, they are listed here…
If you answer yes to any of the questions below than I recommend you open a business bank account.
1. Does your business have any employees
2. Do you receive any other sources of income other than your business
3. Does your business pay expenses like rent, utilities (anything other than small cash expenses)
4. Do you plan on incorporating your business
5. D diligent financial records of all your transactions
You need a business bank account if you answered YES to any question above
If you answered yes to any of the questions above than it is recommended that you open an business checking account. There are some inexpensive and free business checking accounts(link free business checking accounts to the post titles free business checking accounts). Here are some helpfull resources on how to open business bank account(link open business bank account to the homepage).
You may not need a business bank account if you answered NO to the questions above
For example if you are a very small sole operator of your business that has minimal expenses ie hair stylist at home, dog walker, house sitter etc than one option for you would be to have 2 personal checking accounts. One of the personal checking accounts are to hold all your `business“ related income and you can pay all your expenses out of this account as well. The important thing to remember is that you shouldn`t mix the money between the accounts. But every situation is a little bit different and more research into what you are able to do in your state or country should be done.