Episode 013 – Getting Paid: Do You Really Need A Separate Bank Account
About This Episode
Wondering if you need a separate bank account as a DBA? As a sole proprietor? As a solopreneur?
When you start a business, there are a lot of things to do. It’s really easy to be unsure of yourself. What do you NEED to do right now? What can you save for later?
In this episode, I answer the question “Do I really need a separate bank account for my new business?”
The answer should be no surprise…in addition to answering the query, I give you accounting, tax and just practical reasons to back up my answer, I go into quite a bit of detail behind WHY you should absolutely have a separate bank account for your solo-business.
Mentioned in this episode:
- The various reasons supporting my answer – from the practical, to the accounting based, to the IRS-audit based reasons
- A quick tip – the first place you should look to open a business bank account
Highlights of this episode:
- 00:57 Question: “Do I really need a separate checking account/bank account for my business?”
- 01:16 Answer is two fold – from the accounting perspective and from a practical perspective
- 01:30 Why the short answer is always YES, you do need a separate business bank account
- 02:50 The longer answer – practical reasons & starting with at least one bank account for your business
- 04:06 Why doing business and personal banking at the same place makes your life easier
- 04:56 The longer answer – accounting reasons & starting with “tidy” money management
- 06:33 Why separating business and personal transactions makes your life easier
- 07:08 Why I think you should have a separate bank account even if you’re a DBA