Do you have a business checking account?

Question

Hi all! I am just about to buy my first property in the Austin area, and I want to make sure I have everything I need in place before closing. I am looking to set up a checking account so I can keep my finances separate from my investing. My question is do you have a business account or did you just open up a personal account? I will not have an LLC or any other official business entity.

Please let me know if there are other factors I should be considering!

Samuel Young · Answer

I'll definitely be creating a separate account but I am wondering if I should open a specific "Business Checking account" or just another personal checking account?

Ryan Kelly · Answer

@Ku Thao you can’t open a business checking account without a business (LLC, S-Corp, etc). You don’t need a business checking account for a rent home in your own name. Just open two separate bank accounts. One for all operations and a separate one for the security deposits. This way those are not co-mingled.

Ku Thao · Answer

This is the same question I have. I will not be opening up an LLC at the moment.

Kathy Henley · Answer

@Samuel Young Oh yes. My account has a thing about co-mingling funds.

Cody Lewis · Answer

It’s much easier to manage funds and e spends with separate accounts. This will likely be true for you and your accountant.

Ku Thao · Answer

Sorry to Hi-jack the thread. I'm thankful for all the responses.  I did open separate accounts. One for income/expenses and one for security deposits that accrue interest.  Thank you all again!

Kirsten M. · Answer

In order to get a "business checking account", you will need an EIN number. I think a lot of first time investors start with opening a separate checking account and use it as their business checking account.

Allan C. · Answer

@Samuel Young simple answer:  have separate account but just make it a personal account. You have no need for a business account without a LLC, especially since everything else will be in your personal name.

Chris Seveney · Answer

@Samuel Young

If you do not have a LLC you technically do not even need a separate bank account but should use QuickBooks or a spreadsheet to track all your income and expenses for the year for your tax returns

Eliott Elias · Answer

Open a business account, I use Guaranty Bank & Trust in Austin

Do you have a business checking account?

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