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teh scud
 
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Checking account for LLC - can I use a "personal" account?

I recently set up a LLC -- I know I need to get a separate checking account, but I'm wondering if it needs to be a "business" checking account or would a personal account be alright (as long as I only use it for the business)?

I don't expect to be exchanging larges amounts of money so I'd like to avoid the additional costs in maintaining a business checking account if possible -- but I still want to ensure the business is seen as a separate entity from myself. I currently use Bank of America for my personal banking.

So my questions --
-Is there anything wrong with just opening another personal checking account and using it for my small business?
-If I do need to get a business checking account, which bank/plan would be the best option? I'd like to spend as little as possible to maintain the account and I can't ensure a big minimal balance will be kept (at least at first) or that transactions will be above a certain threshold.

Thanks

edit: Ah, so I might run into problems if I try to deposit a check made out to my company's name into my personal account. So chances are I'll need a business checking account -- any suggestions on which one would be good?

Last edited by teh scud; 11-30-2010 at 11:10 AM..
Old 11-30-2010, 11:02 AM teh scud is offline  
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Dongboy
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from an accounting perspective there is nothing wrong with using another personal account for banking - lots of very small businesses do it.

from a relationship with your bank perspective you would be doing something they don't support/want you to do - they have business accounts for a reason - they are about 10/mo in fees for the smallest ones at all the big national banks and if you spent the money to form an LLC I would hope you had 120 bucks a year to support that - besides, you get to write it off on your taxes at the end of the year.

credit unions across the country are DYING for business/corporate accounts - see if there is one in your area that could work with you - they are also frequently more willing to lend for business things that big banks would turn you down on.
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Old 11-30-2010, 11:06 AM Dongboy is offline  
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There's nothing "against the rules" about using a personal account, but because checking accounts are easy to get and there's a good reason to keep your personal and business accounting separated you should just open another account.
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Old 11-30-2010, 11:10 AM Zangmonkey is offline  
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teh scud
 
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Didn't even think of credit unions (don't know much about them, either) -- I'll look into those.

The fees aren't much for a bank business account, but I'd just like to find an alternative if possible -- I'm starting barebones so every dollar counts.


Quote:
Originally Posted by Zangmonkey View Post
There's nothing "against the rules" about using a personal account, but because checking accounts are easy to get and there's a good reason to keep your personal and business accounting separated you should just open another account.
Yeah I'm not considering using the same personal account I use now -- I'm going to open another account, but I'm deciding between personal account, business account, or now something through a credit union.

Last edited by teh scud; 11-30-2010 at 11:32 AM..
Old 11-30-2010, 11:15 AM teh scud is offline  
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At pretty much any bank, you can get a business checking for free with just a monthly transfer. If you can afford to move $100 from checking to savings one time a month, then you should get a business account. If its a personal acct and you get checks written to your business name they're going to give you a hard time about it.
Old 11-30-2010, 06:38 PM Jmag034 is offline  
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Dongboy
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Quote:
Originally Posted by Jmag034 View Post
If its a personal acct and you get checks written to your business name they're going to give you a hard time about it.

I assure you unless the teller themselves cares the bank will not care IN THE LEAST what is written on the payee line
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Old 11-30-2010, 06:46 PM Dongboy is offline  
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