Business Checking Account

[sahm1225]

Do you have to have a business account? How does it work when almost everything I buy is time/space deductions?

[AmyKidsCo]

I have a business account that I use for 100% childcare purchases. All payments go into the business account, then are transferred to our family account. Time/Space items are purchased with the family account.

The more you can keep business and family separated (depositing into business account and 100% business purchases from business account) the better if you're audited.

[TomCopeland]

business account

Do you have to have a business account? How does it work when almost everything I buy is time/space deductions?

There is no right or wrong about having a separate business checking account. Most providers only use a personal checking account for business and personal purposes.

A separate business account can be useful to deposit all business income and write checks for 100% business items. But, since most of your expenses are business and personal, a separate account is not a perfect solution.

In an audit, the IRS will look at both your business and personal accounts.

[Mike]

Also, business accounts have higher monthly fees, so unless there is a good reason to keep business finances separate, it's just an unnecessary expense. I've had a few businesses in my life and only 2 had a separate account.

[daycarediva]

I have a business account that I use for 100% childcare purchases. All payments go into the business account, then are transferred to our family account. Time/Space items are purchased with the family account.

The more you can keep business and family separated (depositing into business account and 100% business purchases from business account) the better if you're audited.

I have payroll (for myself) directly taken out of my business account and direct deposited into my personal checking. ALL 100% daycare use items are purchased with my business checking. I don't have anything except for bills under T/S% really.

Also, business accounts have higher monthly fees, so unless there is a good reason to keep business finances separate, it's just an unnecessary expense. I've had a few businesses in my life and only 2 had a separate account.

Get a better bank! My business account is free.

[sahm1225]

I have payroll (for myself) directly taken out of my business account and direct deposited into my personal checking. ALL 100% daycare use items are purchased with my business checking. I don't have anything except for bills under T/S% really.



Get a better bank! My business account is free.

Mine is free at chase bank.
Daycare diva - di you issue yourself a. W2?

[MarinaVanessa]

I have payroll (for myself) directly taken out of my business account and direct deposited into my personal checking. ALL 100% daycare use items are purchased with my business checking. I don't have anything except for bills under T/S% really.



Get a better bank! My business account is free.

My business account used to be free then they started charging me $15 a month (at Chase).

I like having separate accounts because all of my daycare income goes into that and I can pay 100% business things straight out of that account so keeping track of expenses is easier for me.

My income goes into that account, I transfer 10% of the deposit to my business savings account, transfer what I need to my personal account, transfer another 10-15% to my IRA (all from my mobile app). Doing this helps me organize my finances better.