I have a small business, do I need 2 checking accounts; 1 for everyday checking and 1 for payroll & taxes?

Answer 1

If your business is really small, only one checking account will suffice. As long as you keep your business checking separate from your personal account, you will be in great shape. It isn't necessary to further subdivide into a payroll account.

Answer 2

Yes, I would recoommend it especially for small business. Lot of times its hard to keep track of the amount for payroll taxes. You don't want to have any suprises especially with IRS's money.

Washington Mutual has free business checking, so it won't cost you a whole lot to have two accounts.

Also, if both accounts are from same bank, all you need to do is transfer money online, so it shouldn't be that hard.

Answer 3

I don't think is legally required, but it might help keep things organized. Some businesses have multiple accounts. Check with your accountant and ask what he or she thinks is the best method to use.

And, if you don't have an accountant, get one. You should always have one, even if you don't use them but once a year - as a business owner you will need certain types of professional advice (accounting, banking, legal, etc) and its important to establish those connections early on ... or NOW.

Answer 4

hi
I am currently taking accounting in college, with a world renouned professor, and he has always said 1 account for business expenses, and another for payroll. It is also a good idea because it will kep things organized. It will not require more paper work

Answer 5

Yo9u need to keep the with holding in a seperate account to make sure that you don't spend it. The penalties will put you out of business if you don't send it in on time and you can't get rid of it through bankruptcy if your business fails.

Answer 6

Be very detailed in your paperwork.

Answer 7

Sorry can't help ya. But god bless! I'm just trying 2 get up in levels. Thanks 4 the 2 points!!!!!!