The fact that business is completely undeniably complicated is a no-brainer. It requires one to possess adequate knowledge in human relations, management, math, law, leadership and an efficient transition between these fields. The same factors, when taken into consideration, will explain why it is necessary to form a separate business checking account in spite of the option of managing the business from your account.

Although it might look like creating a separate checking account for business would be a lot of inconveniences, it will only reduce the hassle. As the business expands, it will only get tougher to handle your personal and business finances from the same account.

A separate checking account for business will make the scenario more professional in the eyes of your clients. You definitely wouldn’t want your clients to question your firm’s professionalism from the lack of a business account during transactions. A separate business credit card will be put to use for all the business transactions.

The lack of a separate business checking account could lead to IRS Audit issues. Apart from that, the presence of a business checking account also secures you legally. The creation of a business checking account enables the court to view your firm as a separate entity. Hence, when a legal issue arises with your firm, this account will not allow the petitioner to sue you as an individual. However, the lack of this account takes away just that security from you, and it is capable of putting you through quite some trouble.