Setting up a bank account for your small business
Separate your finances from Day 1
It’s super important when you start your own business to separate your personal and business finances. When you’re starting out, everything is so hectic, it’s easy to postpone this. But it gets harder to separate the finances as time goes on, so good to do this upfront. You will also look more professional if you invoice from a business bank account. You want to make sure you pick the right type of account though to make sure you get the best customer service and aren’t paying too high a fee.
The two most important things to do are:
- Create a business checking account -This will be the account clients pay into and you pay business expenses out of
- Get a business debit or credit card — This is especially useful so you can easily link software subscriptions, meals, and travel with your business account
How to pick where to set up your account:
Firstly, check with your personal bank to see if there are any sign-up bonus for opening a business bank account (e.g., $300 bonus if you maintain a minimum balance of $1,500 or greater).
Secondly, I would check for monthly fees, which typically range from $15–30 USD for small business bank accounts.
If you’re looking for a great starter account, IndyHub recommends Bank of America Business Advantage, which offers a $450 sign up credit when you open an account as well as a small business credit card. Also, it integrates with Quickbooks, an accounting software, which will make your accounting easier down the line.
If you’re looking for other options, this article has a great summary of what’s available.