Any disadvantages to using your personal bank for your business account?
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If Karla opens the business account at our regular bank, it will make transfers and disbursements much easier. And if the total deposits are under $250K, there shouldn’t be any risk, right?
Are there benefits to diversifying the accounts between separate banks that I am not seeing? And as an academic question, if the business is under our LLC, would that count as 2 separate depositors in the eyes of FDIC Insurance? Or, since we are the principals of the LLC, would they still see that as 1 depositor?
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Is she an LLC or a sole proprietorship? If so you can just open another personal account and use it for the business. If you open a business account it might not be linked to your personal accounts in the online.
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Is she an LLC or a sole proprietorship? If so you can just open another personal account and use it for the business. If you open a business account it might not be linked to your personal accounts in the online.
@Mik said in Any disadvantages to using your personal bank for your business account?:
Is she an LLC or a sole proprietorship? If so you can just open another personal account and use it for the business. If you open a business account it might not be linked to your personal accounts in the online.
LLC.
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Depends on the bank and state law.
Some states have laws that treat "business accounts" differently than "personal accounts."
Some banks deliberately impose different rules on "business accounts" on their own.In any case, I see no increased risk just by having your "personal account" and "business account" in the same bank per se.
Do consider maintaining accounts at two or more banks anyway as part of risk management -- just in case calamity hits one bank, you can continue operating with the other.
Good luck.
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I had both accounts in the same bank. In Florida at least they are treated separately by the FDIC (but since it's a national insurance, I don't think it matters where you are.) At my bank there were only advantages--the people there seemed to love me lots more having multiple accounts.
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We’re running into a small hangup. Our regular bank has a 30¢ transaction fee for all transactions over 300. I’m reaching out to the billing processor to see if they aggregate the payments daily or if every invoice is deposited separately.
