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Small business: Necessary to open a business bank account?

March 31st, 2009 Leave a comment Go to comments
Nastka asked:


Hi there. I’m starting a small business as a sole trader very soon. In how far is it helpful to have a business bank account? I know that it isn’t required by law, so I’m a little baffled as to why I shouldn’t or can’t open a second private bank account to keep my income separate from the business’s and to avoid all those fees that come with a business bank account. I hope for a quick reply, thanks in advance.

  1. ஜ ♥ Inez/Inescia ♥ ஜ
    April 2nd, 2009 at 14:10 | #1

    You may have already started researching…and my suggestion would be to shop around!

    A local bank might be good because of the personal contact, but the way banks are being bought up, I’m not sure that will help you in the future.

    Most banks require you to get a federal id to open up a business account. You might want to get open up both checking & savings, that are linked so you could earn a little interest.

    If you are accepting credit card payments, I would suggest a separate account for that, so that you will always know what’s in your operating account. Again, that would be a linked account so that you could easily transfer from the credit card account to your operating account.

    As far as fees…you’ll have them! Other than that, you really need to comparison shop!

    Hope this helps!

    ஜ ♥ Inez/Inescia ♥ ஜ

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