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Jessica, It appears that you posted this message twice.
If you are NOT a Corporation, you DO NOT need a business type bank account.
Do you have an accountant??
Good luck, LUCKIEST

As indicated in the previous posts, you don't technically HAVE to have a business checking account if your business is a sole proprietorship, yet from a practical perspective, you really want to consider doing so anyway. It's no more difficult than getting a personal account, and many banks offer no-fee checking to small businesses that only write a few checks and make a deposits each month.

You and your business are separate entities, and clearly separating their respective finances makes it easier to manage both, especially at tax time. Speaking of taxes, there is no real benefit to be gained from treating your business like a "hobby" (if the activity is profitable), but there are several potential tax advantages to be gained from owning a business. Also, the business will begin to build a good credit history under its own name, which will be important as it grows.

To do business with other businesses, you have to provide certain information. You'd probably feel safer providing the name and address, Employer Identification Number, and banking information for your business than you would giving out your own PERSONAL information (which is what you'd have to provide if you're working from a personal account).

Another reason for having an account under the business name (especially if you're selling on-line) is that many cities, counties, and states monitor web domains from which on-line sales are made. They're checking to see if the name under which products are being sold is set up to collect and pay sales taxes. I know that Texas and Nevada are both in the process of creating task forces to aggressively go after violators. Other states may be doing the same. Again, it's much simpler to handle that with funds from a business account under your business name and the business EID to avoid confusion and penalties.

I hope this helps you decide what's best for your situation.

You will need a tax ID and therefore you will need a business account. Mixing personal and business funds can only lead to an accounting nightmare.

Any income you generate using a personal account will show you as self employed and subject you to the higher tax rate. Better to form a business entity, get an ID and a business account and discuss your tax planning with a professional.

In the long run it will help you out with taxes and should keep you better organized than mingle dollars with your personal money.

Do you NEED to have a business account...? No, not really.

_SHOUL_D you have a business account....? Probably yes, for several reasons.

First, it's usually a good idea not to 'mingle' personal and business funds for many reasons, not the least of which regards taxes

Secondly, if you're organized as a corporation or LLC, you'll need a business account. If you're just going in as a sole prop, you won't. But have you sought professional advise from an attorney or CPA about the wiseness or otherwise of this decision. If you haven't, drop what you're doing and do this now.

Finally, you mentioned Paypal as a payment solution. That is fine as a temporary solution...if and when you start to do significant volume you'll want a tradional merchant account for which you will need a business account. Please go to www.merchantservices-help.com for info on Palpal (including a link to preferred prices) and other merchant account options.

Bottom line: Whether or not you should open a business account (and how to organize your business) is a question to be answered by a professional attorney or CPA and is based on your own unique needs and circumstances. Without knowing this information, I don't feel anyone on this forum can offer you worthwhile advise. Again, 'need' and 'should' are two separate but important issues.