Why Your Business Needs Its Own Bank Account
1. Legal Protection
If your business is a separate legal entity (like an LLC or corporation), mixing personal and business funds can “pierce the corporate veil.” That means you could become personally liable for business debts or lawsuits. Keeping finances separate helps protect your personal assets.
2. Tax Simplicity
A business account makes it easy to track income and expenses, which simplifies bookkeeping and tax filing. No more sorting through personal transactions to find business ones.
3. Professionalism
Paying vendors or receiving payments under your business name builds credibility and trust. It shows you’re serious and legitimate.
4. Business Credit
Using a business account helps you build your company’s credit profile. That’s important if you want to apply for a loan or line of credit later.
5. Compliance
Some business structures, like LLCs and corporations, are required to keep finances separate. A business checking account helps ensure you’re following the rules.
Bottom line: A business checking account protects you, simplifies your life, and helps your business look and operate like a pro.
How a Business Checking Account Works to Simplify Your Day
A business checking account helps streamline your day-to-day money management. Unlike personal accounts, it’s built for high-volume activity and business tools:
- Pay employees and bills with ease.
- Accept payments online or in-store.
- Sync with your accounting software.
- Monitor cash flow 24/7 with online banking.
This setup cuts the clutter and keeps your business running smoothly.
Opening a Business Bank Account: What to Bring and What to Expect
To open a business bank account, you'll typically need an EIN, business formation documents, a business license, an ownership or operating agreement, and a government-issued photo ID.
Tip: It's a good idea to call ahead or check the bank’s website to confirm exactly what’s required.
If you’re interested in opening a business bank account with Midland, you’ll need a few documents:
- Official business name
- U.S. address for the physical location of the business
- Business Tax Identification Number or Employer Identification Number
- Personal and contact information for the account opener
The process is straightforward, and you can even open the account online.
FAQs
Do freelancers or side hustlers need a business account?
Yes! Even small businesses benefit from cleaner finances and easier tax prep.
Is it legally required for LLCs?
In most cases, yes—it helps protect your personal assets by maintaining the LLC’s legal structure.
What if I use my personal account for business?
Mixing accounts can hurt your credibility and complicate taxes. It’s not worth the risk.
Business Banking, Built for You
At Midland States Bank, our business accounts are built to grow with you. Whether you're just getting started or expanding fast, we offer practical tools and local support to keep your business moving forward.
- Multiple account options for every business size
- No-fuss digital banking
- Local teams who get to know your goals
Want banking that makes business easier?
