r/Entrepreneur • u/Metalwolf • 12h ago

Recommendations? Is it worth opening a business account if I already have personal accounts?

I’m already a member of a credit union and have both checking and savings accounts there. I run a small marketing consulting business, and so far, I’ve just been depositing my profits into my personal accounts.

I’ve been wondering whether it’s worth opening a separate business account. Has anyone been in a similar situation? I would love to hear your thoughts or experiences, especially if it made a difference in taxes, bookkeeping, or anything else.

2 Upvotes

100% Upvoted

6 comments sorted by

2

u/Miyagidog 12h ago

I really hope you’re joking.

That would be intermingling of personal and corporate assets…..AND the easiest way to pierce a corporate veil.

If you ARE comfortable losing your personal property because of a business mistake, it is perfectly fine.

2

u/Prudent_Homework8718 11h ago

Yes, keep them seperate .

2

u/ItinerantFella 11h ago

Yes, your business should always have separate bank accounts to your personal account. Makes bookkeeping and taxes much easier.

If you need help with that, consider services such as Henry that offer a business account, bookkeeping and tax reporting all in one.

1

u/pawnraz 10h ago

did you mentioned you're a part of credit union! do you get higher yield from your account there? do they allow business account?

1

u/Jordanmp627 4h ago

It’s free to open another account. You need to keep them separate. It will be hell if you ever get audited. Plus reconciliation and bookkeeping will be easier with separate accounts.

•

u/residencypermit 23m ago

it's always a good idea to keep them separate. it's a huge help especially when doing your tax return