Disclaimer: I am not a lawyer or any law enforcement agent. Every country, state and city have their own rules. Please contact a specialist for any legal consents. Do not take this article as legal advice.
You might be wondering if you need a bank account for your business. And if so, which card should you use? More paperwork? Fees? You might fear the hidden fees and such. But it’s important to separate your business and personal accounts.
Once again this will take some research, and it’ll depend on what best fits your needs.
Why should you open a separate bank account?
First important, this separates your personal money from your business money. If you use your card for every purchase, you must keep track of how much you have in your card. If you overspend, you’ll have debts and you can guess what could happen. No one wants to be reminded nor we want a bigger debt 💸. I highly encourage a separate bank account where only your business expenses and income are used for.
Another important thing you must consider, it’s taxes. I know taxes are scary 😦 and stressful but let’s us not make it complicated. Instead of having to go through every transaction and making which one is business and which one was not, it’s all in one place and one account. Less work, less stress when it comes to your taxes.
Lastly, if your business is structured as an LLC or corporation, you must separate your business and your personal assets. If you fail to do so and you’re ever lawsuit, your personal assets might be in in danger ⛔️ ⚠️ if you’re found guilty of the change.
***Avoid problems and get a separate bank account. ***
Which bank 🏦 account should I pick?
This is a tricky question, and this might take time to decide what options are best for your business. Do some research online and see what card has best benefits, low rates, and any hidden fee.
I had to do some internet search to compare banks and accounts. There are many wonderful pages that compare cards with their pros and cons. nerdwallet.com is certainly a helpful page. For example: https://www.nerdwallet.com/
Another thing to think about is the customer service. How well and fast will the bank attend your needs? Look for reviews online of your bank of choice. If you choose a physical location bank, keep in mind the place and what does the reviews say about the place. How easy is to access the place?
Credit vs Debit Card 💳- if you are planning on taking a credit card for your business, take a debit card out too. Why? Some places don’t accept credit cards, especially for important payments (bills, sometimes). Always be aware of how much you are purchasing.
What if I’m just testing, I don’t know 🤷♀️ if It’ll work. Should I still take out an account? Well, if you feel unsure if your business might not work, test to see if it works. Test before making the official news about your business. You may use your personal account at first, but when you start to see results, make a business account. Keep track of all of receipts 🧾 and payments you made for your business on your personal account.
What did I choose?
After researching online, physical, and other forms of banks and cards, I ended up with two banks as my opinions. And out of all the banks, I ended up going to the bank that I’ve known. It’s close to home and to some of my favorite locations. Also, the same brand bank was all over many locations, so getting to the ATM was not so hard. Plus, there is a bank from the same brand, a bit far, but has a great customer service. No fears or stress.
I personally recommend opening a separate bank account. Once the income becomes bigger, update your account. Always keep an eye 👁 on your expenses. Overspending can be the demise of a business if not done right.
We are getting close to the fun 🤩 part. Don’t give up!! This journey will be worth it all. Next is where will my store be located?