Been putting this off for way too long. Currently mixing personal and business expenses in the same account which is becoming a nightmare come tax season.
Looking at different business banking options but honestly feeling overwhelmed by all the fees and requirements. Some want minimum balances I can’t always maintain with irregular project income.
Dealt with this same headache about 4 years ago. The mixed account thing turned into a bookkeeping disaster.
One thing I learned - don’t get caught up in all the fancy features banks try to sell you. Most small businesses just need basic checking that doesn’t eat you alive with fees.
I actually started with one of those online business accounts everyone recommends. Worked fine but when I had issues, customer service was terrible. Ended up switching to a regional bank that had a simple business account with reasonable fees.
The key is asking about their fee schedule upfront. Some banks waive fees if you keep a certain balance, others charge per check or deposit. Figure out your typical monthly activity first.
Also, get a business debit card right away. Makes it way easier to keep everything separate from day one. The tax organization alone is worth whatever monthly fee you end up paying.
I went through this exact mess a couple years back. The personal/business mixing thing gets ugly fast.
Here’s what worked for me:
I ended up with a local credit union that charges me $5 a month flat. No minimums, no per-transaction fees. Worth calling around to compare.
The separation alone will save you hours during tax prep. Just bite the bullet and do it - you’ll thank yourself later.
Stop overthinking it. I switched from a mixed account setup three years ago and wished I’d done it sooner. Go with whoever has the lowest fees and doesn’t require you to keep thousands sitting around doing nothing. Most contractors I know use simple business checking accounts that cost maybe $10 a month tops. The irregular income thing is real but most banks understand small business cash flow. Just ask them about fee waivers during lean months.
Once you separate everything your bookkeeper or accountant will actually be able to help you instead of sorting through grocery receipts mixed with material costs.
I just go with the local bank nearby.
You don’t need anything fancy. I picked a simple business checking account with no monthly fees as long as I keep $100 in there.
Most online banks work fine for this. Just avoid the ones that charge for every little thing like mobile deposits or transfers.
The main thing is getting it done. Even a basic business account beats mixing everything together.
I use a credit union too. Just walked in and opened whatever business account they had.