Do I need a business bank account?

Question: Do I need a business bank account?

Answer:

Yes. Opening a business bank account is one of the first things you should do when starting a business.

A business bank account is crucial for keeping your business and personal expenses and income separate and getting your new business's recordkeeping off to a good start.

And having a business bank account provides your new business with credibility (with both customers and potential creditors), which is especially important when you're starting a business.

However, don't just run out and open a business bank account anywhere. Take the time to shop around, because there is quite a variance in the fees attached to business accounts - and the first thing you'll discover about business bank accounts is that they always cost more than personal bank accounts!

You can read other business people's opinions about business bank accounts in the forum thread which bank is best for business banking.

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