It may look very convenient and easy to keep your personal and business finances in a single account but, this offers several disadvantages in the long run as the business continue to age and grow. Indeed, opening different accounts for the two can prevent you from experiencing hassles. This will also provide you with different benefits.
1. Legal Liability – Opening a business bank account will protect your personal assets any legal liability. When your company gets sued and you are keeping your company and personal finances in just one account, the court might go after your personal assets since your bank account won’t reflect 2 distinct entities.
2. Tax related concerns – Another excellent benefit of opening a separate account for your business is that it will be a lot easier for you to file business income and expenses for tax purposes.
3. Professionalism– Having a business bank account will lend credibility and professionalism to your firm. If clients see that you are using personal checks for transactions, they may assume that you’re not running a legal business operation.
There other good benefits that you can get as a business owner when you open a business account. It will serve you more good as your company continues to grow and expand.
Trivia Info Resource: http://www.business.hsbc.ae