Sure, it could be hassling and rattling to open a business bank account. But it will be more crazily hassling and painfully rattling for business owners if they do not set up a bank account as early as they have spent the first centavo of their capital. The so-called “disadvantages” could be toppled by the long-term benefits of having a bank account solely for your business, separate from your personal account, and it will focus on just that—your business.
Multiple IDs, business certification (Sole Proprietor? Incorporation?), business overview, a business plan, records of financial sources – do you already feel stressed just by reading them? Different banks might ask for similar (or diverse) requirements, and SURE, it looks demanding at first, but rest assured that all these necessary documents will pave a solid foundation not only for your business account, but for your business per se. Banks don’t ask them just to irritate you, please be reminded of that. And in this day and age, where the internet has the world in a fish bowl, there’s also an option of opening your business bank account online. It takes the sweat off caused by manually opening an account in an actual bank by clicking your mouse here and there in the comfort of your home, removing the additional stress money places on you, any time of the day (as compared to bank hours only) and almost anywhere. You might want to take a look at some credible banks that provide online services, or ask your business friends (or competitors, if you’re brave enough) about their online banking experience. Of course, online banking also has its disadvantages (as everything else in the world has), but opening through either means after weighing your options and preferences is not the primary issue. The main goal is for you to open a business bank account.
How about the extra charges incurred by having a business bank account, as compared with the absence of such charges on personal accounts? Won’t that be enough to push you to pledge sole allegiance to your personal bank account and run away from opening a business bank account? Do not be discouraged. There’s a reason behind these charges, and they are usually written in black and white on brochures or on a decent piece of paper (even in small print). Read them. You can keep these charges at bay, even to a minimum. There are banks which are open for negotiations and they really do care about what their customers think. They will provide clarity. The banks where you would open a business bank account would also advice you wisely, wanting your business to be a business of great proportion (for your benefit and the bank’s). What will be messier in the long run is if you perform your business transactions with your personal bank account. Taxes might be the death of you. Keeping them separate will ensure your sanity and lessened stress.
Don’t be fooled by the so-called disadvantages. Study your options. You will find out that opening a business account is on top of the list of what you can do best for your business.