Why You Should Open a Business Account for Your Startup

Using your personal account for business and personal expenses can be messy.

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
VIP Contributor
Author, Attorney and CPA
2 min read
Opinions expressed by Entrepreneur contributors are their own.

In this video, Entrepreneur Network partner Mark J. Kohler explains the importance of opening a account rather than conjoining your personal and business finances. 

When you're first starting up, you should immediately set up a checking account for your business, Kohler advises. By doing so, you're protecting yourself and your business. A separate business account will provide asset as well as corporate veil protection, as long as you're paying your business expenses from your business account and your personal ones from your personal account. 

Keeping these two accounts separate will also protect you from any run-ins with the . When your books are a mess, you lose out on write-offs and the IRS can go after you, Kohler warns. 

Lastly: open a business account simply for better management and your own sanity. It makes life easier and more organized, so at the end of the year you're not going to go crazy having to separate everything. 

To learn more about opening up a business account, click play. 

Watch more informative videos from Kohler on his YouTube channel.

Related: Deduct Your Holiday Business Travel and Dining the Smart Way

Entrepreneur Network is a premium video network providing entertainment, education and inspiration from successful entrepreneurs and thought leaders. We provide expertise and opportunities to accelerate brand growth and effectively monetize video and audio content distributed across all digital platforms for the business genre.

EN is partnered with hundreds of top YouTube channels in the business vertical and provides partners with distribution on Entrepreneur.com as well as our apps on Amazon FireRoku and .

Click here to become a part of this growing video network.

More from Entrepreneur

Learn how to get your own business launched with our on-demand start-up course. Whether your ready or just thinking about starting your own business, get started for free with our first 3 lessons and receive a personalized 1-page business brief.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Entrepreneur Store scours the web for the newest software, gadgets & web services. Explore our giveaways, bundles, "Pay What You Want" deals & more.

Latest on Entrepreneur