I’m starting up a birddogging biz. Do I need a separate checking account?.. Shaun Ramos DBA (whatever my bus name is)
Or do I just use my personal checking account?
I have always been told that you should keep your business separate from your personal. Also, your accts. should be kept in separate banks. The reason for this is because the bank will take money from one acct. to cover any negative balance, NSF, etc. from the other acct. You could end up putting your business deals or your personal life in a bad situation.
I do not think the banks can legally take money from one and count to cover another unless they are linked together like a checking and savings account. Plus alot of banks give you a discount if you open your business account in the same bank as your personal account. I know bank of america gives you free business checking if you have a current saving and checking account…
A business account is set up in the business names entite therefore the bank has no business going after personal assets to cure a default on the business. they need to go thru the courts like everyone else…
Banks will only use your business account to cover your personal account or viceversa when they have repeatedly contacted you about your NSF on numerous occasions and the account has been negative for a period of many consecutive days. It’s more of a last resort action.
Shuan,
Why not start up a wholesaling biz? Just curious…
~Simeon
Start another checking account to keep everything separate. This will make it much easier when tax times comes around. You just need to look into one account for everything. The bank may not give you a business name unless you have a business licence or corporation ID.
Good luck…