Ah, I will disclose to my bank in advance that the second account will be used for business. If they insist on a commercial account I will get one and then buy my checks from a third party. But the kind of thing you are talking about varies from bank to bank and from state to state. I know they don't have a monthly fee for business accounts - or charges for ATM transactions and interaccount transfers. JUst high fees for checks and deposit slips which I could get from a third party.

But that is very helpful. Thanks to you, I know to make sure the bank is OK with a personal account being used for business purposes.

I think i got a few benefits with a business account but I do my know what they are.

ION,, I think I am going to hire a bookkeeper tomorrow. I'm just spending too much time fixing invoices and tracking payments. Does anyone have any advice or lessons they learned the hard way? I want this guy to track payments and make sure all the tax stuff is right at the end of the year.

A business account gives you better checks - a book that lets you keep detailed information on each check as you tear it off, and maybe more room in the memo field besides. But my checks will still go to few enough accounts that that is not a big deal for me. Also business accounts offer positive pay at a reasonable price which is a really good guard against stuff like a hacked paypal draining your account. (Positive pay means even afteer everything is approved by the bank, the money still does not come out of your account until you approve the transaction.)But again, I'll live for the moment without positive pay until my business is making more than I really expect this year.

A business account gives you better checks - a book that lets you keep detailed information on each check as you tear it off, and maybe more room in the memo field besides.

There's nothing stopping you from buying these kinds of checks for your personal account.

True enough.

A business account gives you better checks - a book that lets you keep detailed information on each check as you tear it off, and maybe more room in the memo field besides.

There's nothing stopping you from buying these kinds of checks for your personal account.

If one had a separate business account and bought these checks specifically for business, might there be some tax advantages? Business expense deductions or whatnot? [/not-a-tax-professional]

I wish I knew a definitive answer on the business account question. My business name is not my name, mostly because a lifetime of spelling my last name to people indicated that wouldn't be a good idea. My bank, which used to have free business checking, now charges $10 a month. I'm thinking about going to an online bank or credit union that has free business checking.

If you receive checks in a business name you *must* use a business account. My local bank actually does offer a free business account, but then fees you to death for everything you would actually do in the account. When you look for another bank with free business checking, make sure the stuff you must do through the bank (like debit card, on-line banking,) etc is free or reasonable. Unless you know of a business account that offers free checks, don't worry too much about pricey checks and deposit slips, cause those you can get through a third party. (And if anyone knows a place besides Costco that offers reasonably priced check and deposit slip printing, please let me know.)

I've used Checks in the Mail [link] for years.