So you’re definitely going to open a separate bank account for your business now. (Right?) But maybe you’re wondering if it has to be a business-specific bank account. And again, the answer is yes.
Sure, you might not see a huge difference when you compare a business bank account vs. a personal bank account. After all, they’re both transaction accounts that let you make and receive payments.
But there are a couple of differences. Unfortunately, business bank accounts often come with more fees and charges (like monthly service fees). Fortunately, they also often come with extra perks (like ATM fee reimbursement), plus all the benefits we’ve outlined above.
(And on the back end, there are different regulations for business banking vs. personal banking.)
Setting all that aside, here’s the main reason you should open a business bank account: we’ve read plenty of stories from business owners who used a personal bank account for their businesses—until the bank found out, got mad, froze their assets, and closed their accounts.
If you don’t want to lose access to your money—even temporarily—then open a business bank account.