Starting an e-commerce business? What a wonderful time you must be experiencing right now! Every single step is aimed at having a profitable and money-making business, every step counts. Now that you know the basics of forming your e-commerce business entity, it’s time to cover some other important points of this industry. You chose your name, formed your business entity, registered a trademark, got tax-exempt, and so on, but there are still many things to do! Having a reputable and recognizable e-commerce business is not always fun and games, you are going to pull out all the stops to have the business of your dreams!
- Today, Prestige Auditors wants you to know everything about business bank accounts and their weight in the e-commerce world. To have a business bank account means numerous advantages waiting for your company. Otherwise, everything will be conducted under your name, which can be detrimental to your reputation, finances, and assets.
But why business bank account? There are numerous reasons for opening a business account, which can not only show your true face, intentions, and reputation but will also protect your personal assets, help you build relationships with banks, and so forth.
- Imagine you only have a personal account. Logically, the assets are not divided into two groups – personal and business ones, due to which these two together form a single whole. This unfortunately means that when you are summoned to court, your personal assets together with the business ones will be eliminated. Do you want to sacrifice your personal assets? Of course not! And it’s not even over yet! Your personal assets are at high risk, especially when you are in the process of large-scale business acquisitions. In this case, your personal assets are in jeopardy, because the risk of someone stealing your own private information is very high.
- Reputation, authenticity, and reliability are also built upon business bank accounts. Working under your own name won’t give you the level of legitimacy you wanted to have. Moreover, personal bank accounts will only show that you are a novice seller, who doesn’t know the rules of the game, while your status will be much higher with a business bank account. What’s even more interesting, the IRS – Internal Revenue Service – will be able to tell a real business income from the hobby-based one.
- In the previous paragraph, we mentioned the IRS, which is able to make a distinction between real businesses and hobbies. This separation is very important because people are charged differently based on the way they receive their income. If you are using a personal account, your business will be taken as a hobby, which is not what professional e-commerce sellers want!
- “Accounting is the language of business,” but how are you going to talk if all of your finances are put in one place? Yes, accounting is possible even if you have only a personal account; however, this will not only be complicated and knotty but also tedious and wearying. Yes, an e-commerce business requires burning the candle at both ends, but you don’t need to add some difficulties on your own!
In one word, a business bank account is as important as setting up your e-commerce business. As you can see, a personal bank account is good for your personal needs and purchases, but business is already something bigger than your personal desires, so you should think big and act big! We at Prestige Auditors care about you and your business, and having a partner like us will enable you to have the best lucrative business in the e-commerce industry!