Do I need a separate business bank account?
In short, yes. If you're an LLC or corporation it's essential for maintaining legal protection. Under the legal theory know as the Alter Ego Doctrine, using the same bank account for individual and business purposes may expose you to personal liability for business obligations.
From a practical purpose, all businesses including sole proprietors should have separate accounts to simplify bookkeeping. To accurately determine the amount of business income and expenses, a business must complete basic bookkeeping including classifying transactions and reconciling accounts. Maintaining a separate business accounts makes that process of classifying and reconciliation significantly simpler. Whenever possible, use a business bank account for business purposes and a personal bank account for personal transactions.
