should my personal and business bank accounts be at different banks?

Question

My attorney suggests that I have one personal bank account at bank A. Business account with bank B.

What would be the advantages/disadvantages of having both personal and business account with the same bank vs. having the with different banks?

Thanks in advance!

Answer 1

I would say at different banks. From experience, you don't want to have them at the same. If you ever run into legal problems or can't pay a business or personal loan, you don't want the bank to have access to you either accounts. At one time I had all my accounts together and they used to freely hold funds in a personal account if there was a late loan payment. DON'T give them this option!

Answer 2

Attorneys offer counsel at high rates. You be the judge. Ask your bank? Mine (SunTrust) actually rewards business owners for having all accounts with it. The advantages are everything from A-Z - personal loans and financing and business loans and merchant card services, etc. The only disadvantage I can see is if you have to pay for your accounts. Mine are all free. No service charges regardless of balances. 3 company accounts and 2 personal accounts. Good deal for me but go and explore for yourself.

Answer 3

The main advantage is that you would be less likely to mix up the two accounts on accident. The disadvantage is that you can't do one stop banking for both personal and business.