8. Get a Business Checking Account

Having a separate checking account for your business helps in establishing its validity. This validity is needed when it comes to dealing with the IRS. With personal and business accounts separate, there is no risk of mixing or commingling funds. Separating your business funds from personal is always a great move. Your business can stand alone when it comes time for lenders to inspect its cash flows. Having a separate business account makes your accounting easier to manage and track expenses for tax purposes. As well, you’ll need a business checking account when opening a business credit card account.

Opening A Business Checking Account

Proper setup of the bank account is crucial if you are going to utilize all forms of credit. Most lenders will want to know the age of your business, and they will determine this by the date when the business’ bank account was set up, as well as the dates on paperwork for incorporation and the tax ID. However, these dates are not nearly as important as the date of the bank account. When lenders want to know the age of your business, this is the date they will primarily consider. As far as they are concerned, your business started when the business bank account was opened.