Why Have a Separate Business Bank Account?
Technically, business owners can use an already-existing personal bank account to receive payments and make purchases, and it will be perfectly legal. However, there are several perks to having a separate bank account for your personal and business expenses. Your Bookkeeping Will Be Easier. When you use a separate business debit card, you can quickly and effectively keep track of cash flow.
Benefits of Opening a Sole Proprietorship Bank Account
It’s not necessary to open a sole proprietor bank account to act as a sole proprietor. You can use an already-existing personal bank account to receive payments and make purchases. However, there are advantages to having separate bank accounts for your personal and business expenses. Your bookkeeping will be easier when you use a separate business debit card. You can quickly and effectively keep track of cash flow.
How to Open a Sole Proprietorship Bank Account
In general, a sole proprietor can take money from their account anytime to pay themselves. If profitable, it’s ownership equity.
- Find a bank offering good terms
- Take identifying and business documents there
- Fill out provided forms