Is it necessary for a sole proprietor to have a separate business banking account?
I own and operate a small business on my own. I use my personal account exclusively for business purposes, while my joint account with my husband is used to pay all of our bills and other expenses. Is a second business checking account truly necessary?
Yes, unless you want to risk losing all your money if someone obtains your account information, plus for tax record keeping purposes - a separate account will keep all your business transactions separate = when you need to withdraw money from your business, write yourself a check - additionally, if someone pays you with a check made out to Jack Jones Co (your company name), instead of John Jones, write yourself a check.
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