Business Interest Checking

The primary purpose of a business checking account, for businesses of any size, is to keep the owner’s finances separate from the company’s. It may be your name on the business card, but business owners can face steep penalties for mixing their personal finances with the company’s. In fact, if you operate your business under a separate legal entity, you may be required to separate your company’s finances from your own.  

Beyond the penalties, a business checking account can also help the organization. Instead of using your personal checking or debit account for business expenses, and having to submit receipts for reimbursement, a business checking account comes with its own debit card (and separate business debit cards for authorized users) for everyday business expenses.  

There are three key reasons to open a business checking account:   

1. Taxes: By opening a business checking account now, you can save yourself headaches at tax time. Sorting through receipts to verify expenses is no one’s idea of a “good time” and could increase the likelihood of an IRS audit.
2. Performance: Want a good idea of how your business is doing? Open a business checking account to review consistent income and expenses without having to make note of which deposits and withdrawals were for personal reasons.  
3. Relationships: Did you know business credit scores are a thing? Many first-time business owners don’t, but they play a vital role in qualifying for business loans and credit cards, which require a business-specific credit report for approval.