Do I need a business bank account for LLC or can I keep using a separate personal account?
I'm trying to figure out if I'm overcomplicating my banking situation or if there's a genuine reason I can't do this.
Until now, I've been using a separate personal checking account for my residential drafting business. It doesn't have my grocery shopping or Netflix payments mixed into it. Just client deposits, software subscriptions and work expenses.
It's been working fine.
I'm switching banks next month because my current one has become a pain to deal with, and the new bank is pushing me towards a business checking account.
The issue is that their business account comes with a monthly fee unless I maintain a certain balance. My income isn't always consistent, so I don't love the idea of paying just to keep an account open.
I don't need payroll services, cash deposits or any of the other features they're advertising.
So do I need a business bank account for LLC purposes, or can I continue using a separate personal checking account exclusively for business transactions?
I know keeping business and personal finances separate matters. That's not what I'm trying to avoid. I'm just wondering whether the account itself needs to be classified as a business account.
And if you're a single-member LLC owner who started with personal checking and later switched, did it make any noticeable difference beyond the account fees?