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Should I open a biz account?

Discussion in 'Ask An Owner Operator' started by Electronic Cowboy, Jan 2, 2015.

Page 1 of 2
  1. Jan 2, 2015 #1
    Electronic Cowboy

    Electronic Cowboy Light Load Member

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    Nov 18, 2014
    LaLa Land
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    I decided to jump back into being an IC, or glorified company driver as some call it (yes, I jumped aboard my company's LP program). Anyways, I heard that a good way to save money is to open two bank accounts,use one account to pay your self with and the other as the primary account where the rest of the money goes that youd save for taxes and other business related items. Would it be a good idea to open one as a business account?
     
    Electronic Cowboy, Jan 2, 2015
    Electronic Cowboy, Jan 2, 2015
    #1
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  3. Jan 2, 2015 #2
    double yellow

    double yellow Road Train Member

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    I would never try to run a business out of my personal bank account. A separate account doesn't save you any money, but it sure makes the accounting easier. Keeps the IRS content too...
     
    double yellow, Jan 2, 2015
    double yellow, Jan 2, 2015
    #2
    Electronic Cowboy and 48Packard Thank this.
  4. Jan 2, 2015 #3
    Electronic Cowboy

    Electronic Cowboy Light Load Member

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    Nov 18, 2014
    LaLa Land
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    This is what I heard. I just wonder the benefits of a biz account vs just opening two personal accounts. More official that way I guess?
     
    Electronic Cowboy, Jan 2, 2015
    Electronic Cowboy, Jan 2, 2015
    #3
  5. Jan 2, 2015 #4
    upallnite

    upallnite Light Load Member

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    May 15, 2010
    Hempstead,TX
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    Get yourself a quality Accountant and run your trucking as a business not a hobby.Two accounts always, never mix business and personal. get a business name and inc., or llc. let the your company lease onto the carrier and pay yourself. little more paperwork but makes uncle sam easier to deal with. Good luck and keep the wheels turning!
     
    upallnite, Jan 2, 2015
    upallnite, Jan 2, 2015
    #4
  7. Jan 2, 2015 #5
    Electronic Cowboy

    Electronic Cowboy Light Load Member

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    Nov 18, 2014
    LaLa Land
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    I use ATBS
     
    Electronic Cowboy, Jan 2, 2015
    Electronic Cowboy, Jan 2, 2015
    #5
  8. Jan 2, 2015 #6
    double yellow

    double yellow Road Train Member

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    If you are a sole proprietorship, you can probably get away with a second personal bank account and use that for business.

    Business accounts tend to have more fees/less freebies, but they also tend to develop relationships with bankers that can be beneficial when you want to borrow money down the road...
     
    double yellow, Jan 2, 2015
    double yellow, Jan 2, 2015
    #6
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  9. Jan 2, 2015 #7
    Skate-Board

    Skate-Board Road Train Member

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    You can't deposit a check into your personal checking account unless it's made out to you so you will have to open a business account that matches your company name.
     
    Skate-Board, Jan 2, 2015
    Skate-Board, Jan 2, 2015
    #7
  10. Jan 2, 2015 #8
    Electronic Cowboy

    Electronic Cowboy Light Load Member

    53
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    Nov 18, 2014
    LaLa Land
    0
    Im unincorporated. Dont have an LLC so there is no company, and I get direct deposit. Used to get checks but good riddance. There were days the check sat on a desk 5-6 days after being received waiting to get deposited. Felt like I was being paid biweekly vs weekly. Glad not to be getting checks. Anyways, I got it resolved. Talked to thy accountant and he said to just open a second personal and use as a business account cause I cant open a biz account without an EID. Dont want to start an LLC or anything until I have a clearer picture of what my P&L is going to look like.
     
    Electronic Cowboy, Jan 2, 2015
    Electronic Cowboy, Jan 2, 2015
    #8
  11. Jan 2, 2015 #9
    double yellow

    double yellow Road Train Member

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    double yellow, Jan 2, 2015
    double yellow, Jan 2, 2015
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    Electronic Cowboy Thanks this.
  12. Jan 3, 2015 #10
    cowboy_tech

    cowboy_tech Road Train Member

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    I opened a business without an EIN (though I do have one now). It depends on the bank. You will still need an EIN to file the 2290.
     
    cowboy_tech, Jan 3, 2015
    cowboy_tech, Jan 3, 2015
    #10
    Electronic Cowboy Thanks this.
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