Thread: Help! Should I get a business account?

I posted last week about a check that my bank won't take. I contacted the check's issuer and they will reissue the check to me...but before I go through that hassle I wanted to see if you think I should open a business account for the sole purpose of my business.

I only make about $250 a month from belly dance related stuff (teaching) plus the occasional gig. It would be nice to have all of my money neatly divided, but is it a pain? Who likes it and who doesn't. Talk to me!

A business account simplifies tax prep. Many banks offer free business checking. I like keeping the money separated - easier and smarter for my purposes.

I have a separate account. Same reason as msgals. Mostly to keep the income separate. I'm a terrible bookkeeper, though, so I'm dreading tax day.

And, Andalee, I don't make a whole lot at it either, so I still think it's worth it....plus, it keeps me from spending *as* much as I would, otherwise.

Originally Posted by msgals

A business account simplifies tax prep. Many banks offer free business checking. I like keeping the money separated - easier and smarter for my purposes.

ITA!

absolutely, keep business income & expenses separate!
But, my 'business account' is still a personal checking account because I have such low volume. All the local banks charge a fee if you have less than a certain amount in a business account, & as long as I am processing less than, say, 50 checks a month, I still qualify for a personal account for my business. In other words, *I* call it my business account, but the actual account type is a personal checking account. Sorry if I rambled- I'm not sure I'm really awake just now.

Originally Posted by Lara L

absolutely, keep business income & expenses separate!
But, my 'business account' is still a personal checking account because I have such low volume. All the local banks charge a fee if you have less than a certain amount in a business account, & as long as I am processing less than, say, 50 checks a month, I still qualify for a personal account for my business.

Ditto. When I checked with about three banks regarding getting a business account (including the bank that I have used for over 30 years), they basically needed which to me, was a high minimum balance plus some other paperwork which would have cost me at least $250 to start. Because I don't make that much, I found a bank that gave me free personal checking, plus no balance and they are open 7 days a week! Oh, and they threw in a $50 gift card to open an account with them. Couldn't go wrong with that!

,r:;You may want to check into if your bank requires a certain sum to start a business account. Most of them have a minimum of 1000.00 and require a copy of a current business license and a ficticous name statement if you are using other than your real name (dance name as an example)
Easier to have people make checks out to you in your real name, get a separate savings account and get a debit card tied to that account.

LOL...so far nobody thinks it is a bad idea. 100% of the people taking the poll said to get a separate account. That's a pretty good indicator. hahahaha. I wish the polls I sent out regarding my event had answers that cut & dry.

Thanks y'all. I found a local bank that I might try. It seems like a good option, no?

Service Charge Schedule:

No Monthly Maintenance Fee
No Minimum Balance Requirement
Unlimited Transactions
Free Internet Banking with Online Bill Pay
Free Download Capability to Excel, Microsoft Money, and Quickbooks

I would try cashing the check again at another branch, I don't know if that applies to credit unions?
Scandalous story-a client accidentally wrote me a check in my business, rather than personal name. I took it to the branch I usually go to, and they said no one would cash it, I had to open a biz account. Didn't have the time that day, so I left. My husband told me to try a different branch, I should be able to sign "pay to the order of" and put my name underneath, then sign. He was totally right, I went in with my biz ID and such and they had no problem with it! I was totally scandalized =(
But yes, I second the "biz account" that is actually a personal account. Glad you found one you like!