Business checking account

[Marko]

Can or should I use my personal checking account instead of a business account? Is it better to have a, doing business as (DBA) or use my own name for business?

[Guest The Unknown Craftsman]

I have found it easier to have a separate account for my business, as it simplifies record keeping, especially when doing taxes.

[Marko]

I have found it easier to have a separate account for my business, as it simplifies record keeping, especially when doing taxes.

 

 

 

Thank you for your help.

[GEP]

I agree, definitely have a separate checking account for your business. It makes recordkeeping much easier. But you can use another personal checking account for this, you don't need an official business checking account, or a DBA account. Business checking accounts come with a lot of fees, I think they are generally geared towards businesses that are larger than a pottery studio. Whereas many banks offer free personal checking accounts these days.

 

Years ago before the Patriot Act, anyone could walk into a bank and walk out with a business checking account. But now you need an official license of some kind, or incorporation papers, to prove you are a business. These are just more expenses that a pottery studio doesn't need. Much simpler to operate as a sole proprietor with a free personal checking account.

 

If you use a personal checking account under your name, you can still use a different business name when you sell. All you need to do is, when someone wants to pay you with a check, have them make the check to your name.

 

Mea

[Pres]

Can or should I use my personal checking account instead of a business account? Is it better to have a, doing business as (DBA) or use my own name for business?

 

 

I have had a personal account for years that I set up when I did shows. At that time I had it set up to do credit card purchases with a machine and all of the paper work involved. It made it a lot easier to do taxes and the other things that come with a business. Now that I do not do shows, and sell much less I still use the account for the studio-buying clay and materials, and other things, and for a place to put income. However, the account has become handy in another way as it never has much in it at a time I use it for internet purchases to protect my household accounts.

[Mark C.]

I have found it easier to have a separate account for my business, as it simplifies record keeping, especially when doing taxes.

 

 

I agree with this 100% unless its just a hobby thing

I have 2 business accounts and one personal account-its way easier at tax time

One thing you may consider is being a member of a credit union (joining) for the business account-they can cost more at regular banks

Credit unions are member owned and have less fees usually.

Msrk

[Marko]

I agree, definitely have a separate checking account for your business. It makes recordkeeping much easier. But you can use another personal checking account for this, you don't need an official business checking account, or a DBA account. Business checking accounts come with a lot of fees, I think they are generally geared towards businesses that are larger than a pottery studio. Whereas many banks offer free personal checking accounts these days.

 

Years ago before the Patriot Act, anyone could walk into a bank and walk out with a business checking account. But now you need an official license of some kind, or incorporation papers, to prove you are a business. These are just more expenses that a pottery studio doesn't need. Much simpler to operate as a sole proprietor with a free personal checking account.

 

If you use a personal checking account under your name, you can still use a different business name when you sell. All you need to do is, when someone wants to pay you with a check, have them make the check to your name.

 

Mea

 

 

Well, I have to say, I like the way you think. Thank you so much. I was worried about the payment options I should give clients. It all makes sense

[Marko]

Can or should I use my personal checking account instead of a business account? Is it better to have a, doing business as (DBA) or use my own name for business?

 

 

I have had a personal account for years that I set up when I did shows. At that time I had it set up to do credit card purchases with a machine and all of the paper work involved. It made it a lot easier to do taxes and the other things that come with a business. Now that I do not do shows, and sell much less I still use the account for the studio-buying clay and materials, and other things, and for a place to put income. However, the account has become handy in another way as it never has much in it at a time I use it for internet purchases to protect my household accounts.

 

 

 

Thanks Pres. I don't know about you, but I hate taxes. I use Turbo tax. It can be beneficial if you can take the time to look at all the steps it offers. Thanks for your reply.

[Pres]

Can or should I use my personal checking account instead of a business account? Is it better to have a, doing business as (DBA) or use my own name for business?

 

 

I have had a personal account for years that I set up when I did shows. At that time I had it set up to do credit card purchases with a machine and all of the paper work involved. It made it a lot easier to do taxes and the other things that come with a business. Now that I do not do shows, and sell much less I still use the account for the studio-buying clay and materials, and other things, and for a place to put income. However, the account has become handy in another way as it never has much in it at a time I use it for internet purchases to protect my household accounts.

 

 

 

Thanks Pres. I don't know about you, but I hate taxes. I use Turbo tax. It can be beneficial if you can take the time to look at all the steps it offers. Thanks for your reply.

 

 

When I first started doing shows I used an accountant for 3 years, then I decided to go with Turbo Tax, and have been using it ever since. It works really well at amortizing major expenses like kilns over the correct number of years-very helpful.