Why You Need a Business Bank Account [Best Account for 2023]

[@machineman6498]

Thank you for making this

[@jimhart]

No problem 😊

[@jeffhaney2827]

Thank you very much for the great information......

[@jimhart]

Glad it was helpful!

[@offairhead]

6:07 we don’t really use checks in the US very often. We can send electronic card payments from our phones using PayPal, Apple Pay, Venmo, Cash App, etc.

[@jimhart]

I know. They are becoming less and less common. But even before we left, we had several people that did work around the house and asked for checks - to avoid the fees associated with credit cards I believe. Even if you do Venmo or Paypal as a business, you still get dinged those fees. Here in Europe there is no charge to transfer money to a business via bank transfer (for them or the consumer).

[@hunterheston]

Hey Jim, thanks for all in informative videos. What about seeding some initial funds into a new businesses checking account? As a sole proprietor opening a checking account are there any rough edges to consider when depositing funds earned elsewhere into the new business? Thanks!

[@bluscorpion]

Question: how do you categorize the moneys used to start the business? Is that under personal income or business income? (This feels like a chicken and egg question.)

[@uhlanibrock3868]

You can keep track of that money and write it off on taxes for business start up costs. Keep your receipts/evidence of purchases. Also, You don’t get taxed for sending money to your own business bank account

[@ptmiller98]

For now I’m opening a 2nd personal checking and savings until I can file my dba and obtain an ein

[@jimhart]

Getting an EIN is free and a dba is super cheap. I recommend starting with the business accounts. It will make your life so much easier.

[@4nn1h1l4t1On]

If it was the cat, you're automatically forgiven. Obrigadinho.

[@strohmeyerlawpllc]

It's not as shiny or impressive as having a Delaware or Wyoming LLC, but having that separate business bank account is *actually*functional* and will make life easier for you, your bookkeeper, and your tax preparer.

[@jimhart]

Unless you live in Delaware or Wyoming you really shouldn’t have an LLC in one of those states.

[@strohmeyerlawpllc]

@@jimhart 100% agree on that. Wyoming and Delaware are just shiny objects that distract business owners.

[@ericvigen]

Very informative and practical. Thanks 👌

[@jimhart]

Glad it was helpful!

[@Hartsdream]

Can a bank account fai*s

[@brettlaw4346]

What happens to the business bank records if the bank is purchased? Or collapses? In the US, in the UK, for instance.

[@jimhart]

I don't know what happens in the UK, but in the US, the Federal Government will take over the bank as they did with SVB. Deposits are insured up to $250,000.

[@offairhead]

👍🏻

[@li_beard_oil3640]

😁👋

[@GetThosePoints]

What about the initial funding of the account coming from a personal account?