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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
Yeah, no need to have a separate account. Particularly if you are not using the other one anyway, it should be easy to keep business and personal expenses separate, which is important for planning and finances.
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.
In my opinion it is better to keep the two seperate. That makes it much easier to keep track of sales and expenses. While I'm not sure I believe the IRS would take you more seriously when it comes tax time. Check with an accountant or lawyer for the details on that. Good luck!!
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.
Any type of business entity needs a business account. Not only that it will help you separate your finances but also will help you in terms of being able easily identify your business expenses and profit from personal. You do not need a TIN # when you open up a sole proprietor account, however, if you choose to get a tin#, you can go to irs.gov to obtain it.
In the long run it will help you out with taxes and should keep you better organized than mingle dollars with your personal money.
There are two reasons to have a separate bank account when you have a small business. The first "reason" is everything Lighthouse24 just told you; the second reason is that it gives you a chance to develop a good relationship with your banker. Even though you have an account that is not being used, go in and talk to your banker. Tell them what you're doing. Ask for advice. There may come a time when you want to expand or apply for funding and this will put you a step ahead. Good luck!!
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.