Using a personal checking account for business?

[HBFIRE]

Wondering if anyone does this.  Currently using Chase, with 0% back.

I've noticed some excellent credit unions with high checking/savings rates.  Is there any issue with opening one of these accounts and using it specifically for business?  Would this have any potential negative consequences i.e. tax issues or pissing off the bank?

[MarciaB]

Nope. No worries. I've done it, and it makes no difference to Uncle Sam how/where you manage your inflows and outflows. It's all the same for taxes.

Your bank might have a problem if you are Joe Smith and your checks say New World Exterminators, but then again, who is actually looking? You would just put your name first, then the business name (if you've got one).

I may be cavalier about the checks though, anyone out there in banking who can address this?

[BlueHouse]

It may depend on your industry.  I can't remember why I needed to have a business account, but I was required to have one as a condition of a government contract -- either directly required, or required to have a business account to make electronic deposits into, or required to get it in order to get a D&B or a FEIN. 

I can add that a few years after doing everything through my business account, I got a new "business" credit card, which is just a regular personal credit card that I only use for business purchases.  I've had no problems doing that and I get better perks using a personal credit account than a business credit account.

[HBFIRE]

Yeah I just confirmed with my CPA this cannot be done.  The bank is required to notify the IRS when it sees business like activity done in a personal account.  Main reason is that people try to avoid taxes using personal accounts.