Small business answers — NOW!

Co-mingling funds

Question
As a home-based business owner, can I just use my personal checking account for my business? 
Answer
No. You should have a separate account for your business for numerous reasons.

If you're using a trade name for your business, you cannot deposit checks made out to the business into your personal account. Other reasons include:

- Separate business income and expenses for tax purposes
- Establish business credit accounts
- Practice good accounting procedures
- Enhance your professional image

You will not be taken seriously as a business professional if you pay your business bills with a personal check. A lot of banks now offer small businesses a low or no fee checking account. Check with the bank where your personal account resides to see what business services they can offer. 
Brain Trust contributor: Co-Author of The 30 Second Commute
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