If you are looking to start a company and are trying to determine if a business bank account is required than ask you need to read this article. I will cover if you need a business checking account and if you do need one what the benefits of having a small company checking account will be.
Do you need a business bank account?
- You don’t have any employees
- Your small operation has no significant expenses
- Most of your clients pay you on a per service basis (for example dog walker, hair cutter) as opposed to a per unit of production
- Your total income is used annually for personal use
- You have the ability to easily identify money from your company
If all the business questions above apply to your situation you don’t need to have a business bank account in most states, however it is best to check with a local accountant to confirm.
If you do require a business account at a bank then you will realize the Benefits of a Business Bank Account…
- Avoid confusion between personal and business transactions
- Increase your credibility when dealing with other organizations
- Increase the number of options for you to get paid
- May help in receiving small business loans
- Required to incorporate your business(which has additional pros/cons)
Compare Small Business Bank Accounts
Comparing small business accounts is the next logical step in choosing a business account. There are thousands of options for you to choose from including free business checking account options, complete a-z solutions involving funding and extensive personal help.
My recommendation is to choose a free checking account to get you started and then proceed from there as your business grows. Keeping the costs down at the start can be a real benefit to many small business owners.