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  • Adding business name to personal checking account

    I'm wondering if and how I can add a business name to my personal checking account. I am curious so when people write checks to me, it looks more professional writing it to a business name than to me personally. Since I'm going to be a sole proprietor right now, do I just need to file an Assumed Name and then bring that form to the bank?

    For those that are wondering why I don't file an S Corp or LLC, as of right now, my insurance covers me pretty well for the work I'll be doing (drain cleaning) and I don't have many assets (no 401k, no house, etc. etc.)

    Any help would be appreciated
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  • #2
    Re: Adding business name to personal checking account

    open a seperate and distinct account for your business. keep personal and buisness money seperate. it'll save possible PITA and heartache later if the IRS gets involved

    steve
    In the never ending struggle to keep the water flowing.... The Poo Poo Cowboy rides again!!!

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    • #3
      Re: Adding business name to personal checking account

      I was thinking about doing that but my tax guy said that if I am organized, I only need one checking account. It made sense since he has a few small businesses and is able to keep them all under one checking account.

      I use Microsoft Money and am very well organized. Plus, since this is a SP, I am using my SS number and all my income would go into my personal checking account and it would make things easier, IMO so I only have to keep track of one bank account. I am considered a sub contractor right now and work with my dad and I'm able to keep things financially separate pretty well.

      But, maybe I'm looking at things wrong here
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      • #4
        Re: Adding business name to personal checking account

        i'm a sole prop. my last business was a sole prop. trust me, if the IRS ever gets involved for ANY reason, keeping your personal and business seperate will save a lot of grief.

        FWIW, my business account is my formal name DBA/ as my company name on my business account. everything from the company (including cash) goes into that account and i pay myself a weekly wage.

        your mileage may vary, but that's the way i do it.

        steve
        In the never ending struggle to keep the water flowing.... The Poo Poo Cowboy rides again!!!

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        • #5
          Re: Adding business name to personal checking account

          i assume you're using your real name as your business name.

          you should still have a business account for your business.

          very simple as to go to the bank and open up a business account.

          as long as it's your true name, you shouldn't have to have a "dba" doing business as.

          i use my first and last name followed by "plumbing" it's never been an issue and the bank opened this account without a dba since it's my name.

          most of all, you need a separate account. it will make it much easier to keep track of income/ deposits and debts/ payments.

          rick.
          phoebe it is

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          • #6
            Re: Adding business name to personal checking account

            I won't be using my name so I'm wondering if that presents a problem.
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            • #7
              Re: Adding business name to personal checking account

              dude, it's your call. you have been given good advise. just don't call me IF you ever get audited.

              steve
              In the never ending struggle to keep the water flowing.... The Poo Poo Cowboy rides again!!!

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              • #8
                Re: Adding business name to personal checking account

                Originally posted by HouseOfAtlas View Post
                I won't be using my name so I'm wondering if that presents a problem.
                The bank probably won't add a commercial name to a personal checking account. They want to get you a commercial checking account which has monthly fees. When I had one 5 years ago it was about $20/month.

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                • #9
                  Re: Adding business name to personal checking account

                  Originally posted by HouseOfAtlas View Post
                  I won't be using my name so I'm wondering if that presents a problem.
                  out here you would need to file a fictitious business name and get it registered with the secretary of state. it also has to run in a local newspaper for a number of weeks.

                  go check into it.

                  even to deposit it you would need to have an account with the name on it that it is written out to .

                  rick.
                  phoebe it is

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                  • #10
                    Re: Adding business name to personal checking account

                    my bank doesn't charge a fee for commercial if you keep a certain balance and it's a lot higher balance than my personal account. to the best of my knowledge i've never paid a service fee for my commercial ccount.

                    still the peace of mind of having seperate accounts would be worth it. and i'm a cheap bastard when it comes to banking

                    steve
                    In the never ending struggle to keep the water flowing.... The Poo Poo Cowboy rides again!!!

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                    • #11
                      Re: Adding business name to personal checking account

                      There is another less obvious reason to avoid mixing personal / business accounts. Businesses (small or large) are living, breathing things that change over time. What is important today, may not be important tomorrow, i.e., a major client today might be a minor client tomorrow; drain cleaning might be hot today and but real estate inspections are more fun and easier tomorrow, etc...

                      As your business changes over time, you will need to figure what is paying well and what isn't, or what you should charge for a new service, etc... It will be really hard to analyze numbers if you must first remove groceries and Christmas presents from your expenses!

                      You never know what could occur that might require instant and dramatic change - let's say you hurt your back and you need to hire a helper... you are going to need to figure out how how much to increase your rates in order to maintain a similar income with less productivity. To do this you might need to look at a three year average and you don't want to weed out three years worth of personal expenses in order to get the number that you need.

                      How about your next big tool? Maybe you decide for whatever reason that a trailer mounted hydro-jetter is needed at a cost of $20K. You might need a loan from a commercial lender. Which sole proprietor is the bank more likely to loan to0 - the gut that throws everything into one pot, or the guy that demonstrates a professional mentality with a dedicated set of books?

                      Try to think no less than two years into the future when making decisions like this about your business. Things will change and it's far easier to adapt to those changes progressively rather than reactively.
                      spodelee

                      Until lions have their own storytellers, stories of the hunt shall always glorify the hunter

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                      • #12
                        Re: Adding business name to personal checking account

                        Alright, alright. I'll go and get a business checking account LOL!

                        I am going to register an Assumed Name with the Secretary of State, run the ad in the paper, and then go to the bank to open up a new account.

                        Thanks, guys. I really appreciate it
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                        • #13
                          Re: Adding business name to personal checking account

                          getting loans will be easier as well if you have your business separated, also some times the way things are deprecated and or deducted from your tax liabilities can make a world of difference on some items, much easier to deduct the truck completely and its expenses, than on a personal tax where you may have to split it 50/50 or may not be able to take it off your taxes depending on how it is set up.

                          and getting some tax advice and how to set up things and depreciate equipment and the rest of what goes on when money is involved you should be looking into, you may have to pay quarterly income tax, and so on,

                          so keeping it all separate is a good deal, yes there are a few addition cost as two accounts and additional checks, but I think for the most part that is very minimal, for what gains there are in the better record keeping,

                          and
                          I did not catch if your married or not, but having separate accounts so you know what you have in the account at any given time is worth a lot, and some people do not understand "working moneys" that yes it spendable but not for non business items, that is not to say your spouse should or should not have access to the account, but that one is for business items and one is for personal items,

                          Pay your self a wage or a salary to your personal account, just as if your an employee,
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