When you create a business, there are so many aspects you’ll need to consider. One involves ensuring your personal assets are separate from your business assets. Opening a business bank account is something that often gets overlooked from perspective business owners. Here’s why it’s important.
Protection from liability
Personal liability is a concern for most new business owners. A business bank account helps secure your limited personal liability. When you receive and spend from your personal account, you may not be protected against personal liability to settle debts. Your personal information remains private and protected when you use a business account.
More purchasing power
Your company may have more purchasing power than you would personally. Opening a business account gives you access to credit card accounts that can help your company make large purchases and establish credit in the entity’s name.
When finding the right bank, it’s important to look around and examine your options. Some banks specifically cater to businesses and offer low-interest rates, introductory offers, transaction fees and other perks.
