How — and Why — to Keep Your Business and Personal Accounts Separate

 
 

If you own a small business, you may be tempted to commingle your business and personal accounts, but doing so may bring some unwanted consequences. The way to avoid this is to form a separate financial identity for your business, and never tap those accounts for personal use. In fact, IRS Publication 583 [PDF] states that one of the first things you should do when starting a business is to open a business checking account. Here are some of the other benefits you can achieve by keeping your accounts separate.