If you own a business, no matter how big or small, it is a good idea to have a business checking account. Having a business checking account that is separate from a personal checking account just makes more financial sense for business owners. It is easy to open a business checking account, and it can even be done online.
Benefits of Business Checking
There are many benefits to having a business checking account. Some of these advantages include:
- There are tax advantages to having a business checking account. Business account fees are tax deductible while fees from personal accounts are not.
- It is easier to track expenses and payments that are business related if they all go through the business account. Itemized statements from the account can be ordered and used for tax purposes.
- Having a business account shows the IRS you have intent to make money with the business and that it is different from hobby income.
- Personal assets are protected should something go wrong with the business. Only business funds will be affected.
- You will have the ability through checks from the business account to provide refunds to customers and make purchases where credit and debit are not or can not be accepted.
Opening an Account Online
It is really a matter of personal preference whether one wants to open a business checking account online or at an actual bank branch. It’s very easy to choose the bank that you want to do business with and look at their website for all of the account details. Finding the area regarding new accounts should direct you to where you can open an new business checking account. Following the steps to fill out the application is very easy. The opening deposit can be done online with a credit or debit card or by mailing a check to the bank.
The advantages to opening an account online:
- Saves time as you do not have to visit a branch or make an appointment
- Can be done 24 hours a day
- Can spend time shopping different banks for the best service
The disadvantages to opening an account online:
- No immediate assistance in answering any questions you might have
- Not making personal contacts and business connections
- If you have to mail a check to fund the account, can take days to get set up
Starting a new business can be time consuming, so being able to save time and get a business checking account set up online any time of day or night can be very convenient. However, there are also advantages to establishing a business relationship with the bank employes and having that support if and when you need it. You need to weigh the pros and cons for your particular business in deciding to open an account online or in person at a branch.