Can I use my Personal Bank Account for my Small Business?

Jason (P) David
Jason (P) David
Last Updated: April 15, 2021
Date Published: April 14, 2021

There is no law that says you cannot use your personal bank account for your small business but it is not recommended.

Having two separate bank accounts might seem inconvenient, but it can effect your legal liability.

One of the first steps to starting a business is opening a business bank account.

Using a separate business bank account makes it easier to distinguish personal and business income and expenses come tax time.

It is good to develop good business habits from the beginning and setting up a business bank account from the beginning will simplify things down the road as your business grows and becomes more complex.

Most business types are considered a separate entity and thus keeping your business bank account separate is recommended, but not required.