Is there really a need for a business account?

Discussion in 'Trucker Taxes and Truck Financing' started by Tripp_84, Jun 6, 2020.

  1. Tripp_84

    Tripp_84 Bobtail Member

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    Las Vegas
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    As an o/o just working for yourself, is there really a need to have a business account? What possible positives would there be over just starting a new seperate Checking account with your current bank? A lot of business accounts i see, if not all, require fees, minimum balances, caps on monthly deposits without fees etc.

    Is there a reason one would elect to do that over opening a new free checking account? I could see the reason for a bigger operation i guess but my question is for a single operator,

    Thanks
     
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  3. stillwurkin

    stillwurkin Road Train Member

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    I do not have a seperate business account. I know some do, for over 40 years it has not been a issue for me. I am a 1 truck owner. I keep a envelope with my reciepts and expenses for every month of the year. That helps at income tax time. Works for me.
     
  4. uncleal13

    uncleal13 Road Train Member

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    I just use a separate personal checking account, then just transfer over what ever I'm paying myself that month to my personal use, personal checking account.
    I think it's best to keep things separate.
     
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  5. Rideandrepair

    Rideandrepair Road Train Member

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    I’ve always had a separate Bussiness account, though admittedly don’t always keep things separate. I try to, best I can. I think it helps to keep things separate. One Checking account for expenses and payroll draws. One for personal use. In case of audit, cancelled checks for expenses. In case of a lawsuit, Company assets record. Debit card with company name on it. Also, Usually get some perks, like Credit Card offers, with company name on the card. Also makes it easy to see, Revenue, deposits, and overhead spent.End of year, when doing taxes, I go through the check books, in case I missed something, or need the amount spent, on Plates, Ifta, or anything.
     
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  6. PE_T

    PE_T Road Train Member

    If you book your own freight from the spot market, you’ll eventually be forced to get a business account under your company name to be able to cash any checks that were made payable to your company name instead of your personal name. That’s the main reason I personally had to open one up.

    Maybe another reason to get a business account is if you have an LLC, a corporation, or have drivers.
     
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  7. Opus

    Opus Road Train Member

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    I don't have a separate business account. The way I see it, there's no need. After all, I pay taxes on total revenue less deductions, and that's a fairly simple exercise.
    My wife has her own job and bank account, so that makes it a little easier as well.
    1 truck, 1 man, leased on to a carrier.
     
  8. "semi" retired

    "semi" retired Road Train Member

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    Absolutely. I did it all wrong. I got my check and just put it in a bank account and drew off of that. I should have had, I was told, a business account, and paid myself a salary. I paid WAY too much in taxes my way.
     
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  9. stillwurkin

    stillwurkin Road Train Member

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    But now just think..you're collecting that big SSI check? I hope to be in less than 3 years..mayby.
     
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  10. "semi" retired

    "semi" retired Road Train Member

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    $1204/month, and with Medicare deduction( 144.50/mo,,bunch of crooks), doesn't leave a lot left. Still, I'd rather adjust my lifestyle than drive a truck again, and the words "government assistance" have a whole new meaning. Gimme, gimee, gimee,,,
     
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  11. Accidental Trucker

    Accidental Trucker Road Train Member

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    Yes,use a separate checking account. Doesn’t matter what the bank calls it. I have four business checking accounts, every one of them free. Local and small regional banks are your best bet, or credit unions if you’re not looking for a banking relationship.
     
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