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Online Banking & Business vrs Personal Accounts

Discussion in 'Business & Tax Advice' started by hanzechin, Sep 11, 2013.

  1. hanzechin

    hanzechin Newbie

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    I am about to open up a small hosting business account, and well I am currently searching for a online banking service. I'm curious if I have to open an actual business account or would I be fine with a small personal account? Also what online banking service would you guys recommend ? I currently live in the United States :).

    EDIT:

    People keep thinking I am talking about Paypal and etc though I'm actually talking about banks that are ran online such as Ally bank and etc.
     
    Last edited: Sep 11, 2013
  2. AquaticGamer

    AquaticGamer Jr. VIP Jr. VIP

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  3. hanzechin

    hanzechin Newbie

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    Aha, the online bank would serve to be used to verify my paypal and most online banks have better interest rate then a real one. Plus they would allow interest rate on checking accounts.
     
  4. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    I ran a small biz for a long time via paypal personal. Some customers complained, I had to endure for a while....
     
  5. hanzechin

    hanzechin Newbie

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    I see though I'm saying should I run a small biz off of a personal bank account (online) or a online biz account and if so what are some online banks you guys suggest? :O
     
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  6. InnovativeSEO

    InnovativeSEO Senior Member

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    Deciding how you want to structure your business is the first step, and I highly recommend that you ask someone that's qualified to help, or even spend some time online, so that you know what you are getting in to. Laws vary from state to state, but the process is fairly simple, so take the time and do that part appropriately from the start.

    Regarding banking, there are obviously options across the USA. There are pros and cons with varying institutions, but the choice itself will be easier once you have decided on your operational structure. I would recommend an LLC, but that in itself is a separate course.

    Ally Bank is great because they do not have the usual extra fees that most banks charge, plus they do not charge for debit card transactions or NSF funds if your account happens to go negative.

    Ally is great except for 2 things:
    They only have personal accounts (registered under your SSN and personal name)
    There is not a local Ally bank ANYWHERE should you be in the situation that you need one.


    At some point you?re going to be in the position of needing proof of something about your business, so be prepared now that way you can handle what you should be when that time comes. You can setup an LLC, or you may decide for now just to operate as a sole proprietor, but whatever you do....take the time to get informed on your options and do it RIGHT from the start.

    Don't ever dismiss the importance of the small decisions that you make, especially in the beginning because you?re establishing the foundation to what you?re hopefully going to pursue for a while.
    Again, you are welcome to message me if you have questions or would like a 2[SUP]nd[/SUP] opinion.
    I will gladly assist you, and there?s no concern about fees. I wish you well in your journey.
     
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