For many budding entrepreneurs in South Carolina, the path to starting a successful business involves a careful accounting of finances. A small business checking account separate from your personal bank account can be a good way to keep track of your business-related spending and savings, and can provide a host of other benefits, depending on the type of account you choose.
Why open a separate account?
A business bank account functions differently than a personal bank account. The U.S. Small Business Administration notes that you can start building a credit history for your business by making any large purchases through an optional line of business credit.
A separate business account allows you to have your employees handle some of the banking tasks instead of having to do it all yourself. Plus, it adds a professional touch when your customers can write checks to your business instead of to your name. Additionally, having a separate business account can protect your own personal assets in case of any liability incidents.
Not all business bank accounts are the same
Each different account comes with its own interest rates and associated fees, which warrants some time spent comparing your options. Some accounts charge a fee for having a balance below a certain minimum threshold, so be wary of what the minimum is and how much the fee will be, especially as you are still trying to grow your sales.
Look for an account with lower transaction fees and interest rates, as over time it can save you a lot more money. And while you can benefit from a good introductory offer in the short term, make sure that the account will serve you in the long-term as well.
This is an informative article and is not intended as legal advice.