Business Bank Account???

[yodaone]

Do you have a business bank account or do you have a personal checking account for your business?

I had no idea, going to the bank to open an account for my daycare, that it HAD to be a business account, which has so many requirements... minimum amount in the account, must have at least 15 withdrawals a month to avoid a fee... I'm just a bit overwhelmed with it all.

[Michael]

I would set up a business account. It is important to keep your business and personal records separate. I would check with other banks on their fees and services. I was using Wells Fargo for my personal accounts but went to Band of America for my Business. Check around and let them offer your their benefits for having your business.

More threads here: https://www.daycare.com/forum/tags.php?tag=bank+account

[Controlled Chaos]

I have to say I love having separate accounts. It makes balancing my household and business budgets much simpler and tax time is easier. I formed an LLC and have a salary transferred from business to personal account once a month. Taxes come out of it automatically. Its great. Even as a sole propreiter, I imagine having the 2 accounts would make it easier to track deductions. My bank offered different levels of business accounts. I took the lowest one. I did need a one time deposit that was maybe $1000, but the banker told me it didn't need to stay in there, I could withdraw a chunk of it right away if needed.

[MyAngels]

I agree with having separate accounts. I have an account that's considered a personal account, but it has my name and then d/b/a my business name. No fees at all associated with it, ever. I opened it over twenty years ago though so maybe they don't offer that nowadays.

[Miss A]

I have a business account, and I love having everything separate. It is so much easier because I can link my QuickBooks right to it, and then flag all the personal use items that are taken out of my business account, such as payments into my IRA, and payment to myself to my personal checking from my business checking.

[NoMoreJuice!]

I have one checking account. Being a sole proprietor, my business is not it's own separate entity and there's no reason for me to treat it as such. If the IRS wants to go through my account, totally ok with me: money in matches income reported, money out matches expenses deducted.

[Pepperth]

I opened a seperate account and it makes it so much easier. I was able to open a small business free checking account at my credit union.

[Baby Beluga]

I too have a separate business account, but it is just a personal checking account that I designated for business use. Parents even transfer to this account from their own accounts and it has never been questioned.

I suppose the bank doesn't *have* to know you use it for DC, do they?

[jenboo]

I too have a separate business account, but it is just a personal checking account that I designated for business use. Parents even transfer to this account from their own accounts and it has never been questioned.

I suppose the bank doesn't *have* to know you use it for DC, do they?

This is what I do.
Our bank let's is nickname the accounts. I have one called daycare and one called personal.

[lovemydaycare0912]

I have a business account with wells fargo. My daycare is an LLC and I have an ein number. It makes it easier to have everything come out of the business. Feels more professional for some reason too

[wonderfullisa]

I don't use separate, being home based. So many of my expenses are shared. I use ynab (youneedabudget.com) to track all of my spending, so that is where i categorize things.
However, if I were to do a separate one, I would just to a personal, like PPs mentioned.

[Alwaysgreener]

When I researched this I believe I read on Tom blog that a business account was not needed. So I was just using my personal one. Until I got a check with my dba name and I could not deposit it. Then I opened one at my CU. this CU only allows a saving account, no ATM card but it does have online access and can transfer into personal account as needed.
My other CU offers a checking only with transactions limitation, more than I would use. (they may also offer CC)

So I say if you want a biz account check around, I found what my CU offers via website, then emailed any questions.

[Lovisa]

I use me and my husbands normal checking account for my business income. It would be a huge pain for me to keep track of 2 accounts, plus transfer money all the time to our shared account for house bills and things. Too much to keep track of. Hasn't been difficult at all to keep records, and like someone said above, an auditor can look at our bank acct if they want to. Everything will match up! Been doing this for a year now and it works out easily for me

[yodaone]

Checks in daycare name

So here is where the problem began... I do have checks written to my daycare name... didn't think it would be an issue. I have an EIN number and a paper that states my DBA. When I went to the bank to deposit those checks, with my DBA paperwork, they told me if the check is written to the business name, it MUST go in a business account and I MUST register my business with the county I live in before I can even open a business account. I wasn't expecting that at all.. so needless to say I still have those checks sitting here. I have to go to the clerk's office, pay $10 to register my business and get it notarized. I'm doing my business as sole proprietor and clearly had no clue what I was getting myself into.

[Miss A]

So here is where the problem began... I do have checks written to my daycare name... didn't think it would be an issue. I have an EIN number and a paper that states my DBA. When I went to the bank to deposit those checks, with my DBA paperwork, they told me if the check is written to the business name, it MUST go in a business account and I MUST register my business with the county I live in before I can even open a business account. I wasn't expecting that at all.. so needless to say I still have those checks sitting here. I have to go to the clerk's office, pay $10 to register my business and get it notarized. I'm doing my business as sole proprietor and clearly had no clue what I was getting myself into.

Yes, I had to do all of that as well. In the end, I opted to do it because registering my DBA meant that no one in my area could use my chosen daycare name.