One of the most important things you need to do when starting your business is get business bank accounts. Even if you used your personal money to cover your startup costs, there are plenty of reasons why you should separate your personal finances from those of your business.
Keeping your business finances separate from your personal will keep the IRS off your back. Failure to do so could have you ruffling through all your receipts, trying to prove to them that certain expenses are for business, since they might consider your business more of a hobby.
Using a separate business account could also provide you legal protection. When your business is an LLC, you are considered a separate entity from your business. If for any reason someone tries to sue your business, they cannot go after your personal assets. However, if you are using your business and personal accounts interchangeably, the judge could go after your personal finances because they look like one and the same.
If you don't have a business checking and savings account, getting one is not tough. You just need your EIN (tax ID) number for your business, or social security number. I do the financials for Willow Creek Financial Services through a credit union, because there are very few fees. Shop around and figure out what bank is best for your business. Ask about their fees, so you know what you're getting into.
Willow Creek Financial Services
Buy from a Black Woman Contributing Writer
Lauren formed Willow Creek Financial Services with the purpose of helping you, the small business owner, have peace of mind and confidence about your financials. With an accounting degree and years of accounting experience behind her, she is here to help you grow your business.
She is the newest member of the Buy from a Black Woman Contributing Writer Team.