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You may need a business checking account when you start your own business. If you are preparing to start a business, you should know all the benefits of a business checking account.
When you open a Business Checking Account such as the MIDFLORIDA Credit Union Free Business Checking account, you’re upgrading your business in almost every way.
Here are five business checking account benefits that every business can appreciate.
Open your Business Checking Account with MIDFLORIDA Credit Union.
1. A business checking account allows you to apply for business loans
If you want to apply for a business loan, you’ll want a business checking account. It will help your loan officer understand your financial needs and history.
You’ll also want a business account to help you get a business credit card or line of credit.
You can get a business checking account when you apply for a loan. However, having a preexisting business checking account gives you a head start.
You’ll be able to show the loan officer your business’s transaction history and demonstrate you’re financially stable.
2. A business checking account keeps your finances organized
If you use your personal account for business purposes, you mix your personal and business transactions. This can be a problem when you file your taxes as a small business.
It’s too easy to overlook a business expense among your personal checking account transactions. As a result, you might get less of a tax deduction.
Worse, you might overlook some business income in your personal checking account. This can lead to fines from the IRS.
When you have a business checking account, you’ll know what you’ve earned and what you’ve spent over the past year.
This makes filing taxes easier and gives you a better idea of how well your business is doing overall. Consult with a tax professional for additional guidance.
How business checking accounts benefit businesses with employees
If your business has employees, you’ll appreciate how a business checking account organizes your finances even more.
By authorizing select employees to use your business checking account, you can delegate tasks while you focus on the big picture.
You can also process your payroll through your business checking account and ensure your employees get their paychecks.
3. A business checking account verifies your business with the IRS
The IRS has several factors determining whether you have a business or a hobby for tax purposes.
The first factor on their list is “whether you carry on the activity in a businesslike manner and maintain complete and accurate books and records.”
One way to show evidence that you meet this requirement is by keeping a separate business checking account.
A business checking account can also prove to the IRS that you meet other requirements. For instance, it can prove that your business is profitable.
4. A business checking account enhances your credibility
A business checking account also enhances your company’s credibility.
If you use a personal account to accept payments, your customers might think your business is a hobby or a side hustle.
When you have a business checking account, your clients will understand you’re serious about your business.
This might not seem like a huge benefit, but it could be the difference between customers choosing you instead of your competition.
5. Business checking accounts are a necessary element to limit your personal liability for corporate debts
Keeping your personal and business finances separate doesn’t just make your life easier. It also is necessary to avoid becoming personally liable if your corporate business is sued. A corporation or limited liability company can help protect you from personal liability for business debts, but this protection can be lost if you mix personal financial transactions with your business transactions.
If you don’t have a business checking account, a court could rule that a plaintiff can take your personal funds to satisfy a judgment against your business. Talk to a qualified lawyer for details.
Get these benefits and more with a MIDFLORIDA Free Business Checking account
A MIDFLORIDA Free Business Checking account provides all five of these benefits to your business, plus several others.
For instance, our remote deposit capture service lets you cash checks through your mobile phone. You can cash checks anywhere at any time.
You can also give your customers more ways to pay, including Visa and Mastercard.
Our fraud protection services protect your business from phony checks and ACH debits. This service verifies the checks and ACH debits you issue and alerts you if there are any discrepancies.
Additionally, as a Business Banking member with MIDFLORIDA, you’ll enjoy:
- No early deposit cut-off time
- 7 am to 7 pm drive-thru hours Monday through Friday,
- Full-service Saturday hours
- Extended Help Desk hours with no appointment needed
Get a Business Checking Account at MIDFLORIDA
When you get a business checking account, you get several benefits for your business and personal finances.
A business checking account enhances your business’s credibility. It also separates your business and personal finances, which limits your liability and makes tracking business transactions easier.
You may also need a business checking account to get a business loan, business line of credit, or business credit card.
If you want to experience the benefits of a business checking account for your company, get a Free Business Checking account at MIDFLORIDA today.
Even better, you can get a $300 bonus1 if you’re a new member and meet the terms and conditions. This bonus is a good way to boost your business's new checking account.
1. Offer valid as of February 1, 2025, and may be canceled at any time without notice. Eligibility and membership requirements for business and business owner(s) apply. To qualify for the $300 incentive, the business must open a Business Checking account (Free Business Checking (minimum $100 to open), Premier Business Checking (minimum $500 to open) or Business Checking Plus Interest (minimum $500 to open); accept and open Online Banking, and eStatement; make deposits totaling at least $5,000 in a calendar month for two of the first six months of account opening; and complete five transactions (deposits, withdrawals, etc.) within the first 60 days. No dividends are paid on Free Business Checking and Premier Business Checking. Annual Percentage Yield for Free Business Checking and Premier Business Checking is 0.00%. Annual Percentage Yield for Business Checking Plus Interest is 4.00% for balances up to $10,000.00; 4.00% to 1.63% for balances of $10,000.01 to $25,000.00; 1.63% to 0.84% for balances of $25,000.01 to $50,000.00; 0.84% to 0.44% for balances of $50,000.01 to $100,000.00; and 0.44% to 0.05%for balances $100,000.01 and over. Rate may change after account is opened. Any business EIN that has previously received a business checking incentive will not qualify for the $300 incentive. The $300 will be deposited to the new Free Business Checking account after the qualifications have been met and will be reported to the IRS.
