| Pages in topic: < [1 2] | Poll: Do you have a dedicated bank account for your business? Thread poster: ProZ.com Staff
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I use Paypal like a bank account. All payments go there and are recorded by my accounting software. I want to open an official business account, which is why I am shopping for banks right now.
| | | | Rebecca Garber 
Local time: 13:40
Member (2005)
German to English
+ ...
| I am the accountant | Dec 9, 2014 |
Both I and my husband are self-employed. I do all of the accounting.
He has a business account, I don't. Due to the nature of his business, his is a registered LLC.
I, otoh, just hung out a shingle as a translator and eventually earned enough clients to make it full time.
In order to open a separate business account, one's business must be registered as an LLC with the state. This isn't a horrible burden: fill out a 1 page form (amazingly simple), mail to LARA, include a chec... See more Both I and my husband are self-employed. I do all of the accounting.
He has a business account, I don't. Due to the nature of his business, his is a registered LLC.
I, otoh, just hung out a shingle as a translator and eventually earned enough clients to make it full time.
In order to open a separate business account, one's business must be registered as an LLC with the state. This isn't a horrible burden: fill out a 1 page form (amazingly simple), mail to LARA, include a check for USD 50, and in a week you are incorporated.
With regard to the accounting: I run mine using an excel spreadsheet that I built over time, and which is amazingly easy. The banking is also easy: the wire transfers are business payments. The credit union website allows me to search by transfer type, so the accounting is a snap.
I run my husband's using actual accounting software. Which I find adds a layer of complication to everything.
Could I switch over to the formal business model? Yes. The hoops are relatively easy to jump through.
Do I *need* to switch? No. The IRS seems perfectly happy to receive quarterly payments on my income. Until then, I will run my business through our personal account. ▲ Collapse
| | | | Mario Freitas
Brazil
Local time: 14:40
Member (2014)
English to Portuguese
+ ...
| Unless you have a specific need for that, | Dec 9, 2014 |
I see no reason why a freelancer would have a dedicated account for this purpose.
In my case, I used to have three accounts in three different banks. I recently closed one of them, but I still give my clients the option to chose from the other two. Anything that makes payment easier for the client is an advantage for both parties.
Also, the translations currently represent practically all my income, so either account could be considered dedicated, but I do all banking o... See more I see no reason why a freelancer would have a dedicated account for this purpose.
In my case, I used to have three accounts in three different banks. I recently closed one of them, but I still give my clients the option to chose from the other two. Anything that makes payment easier for the client is an advantage for both parties.
Also, the translations currently represent practically all my income, so either account could be considered dedicated, but I do all banking operations in both, i. e., all payments, transfers, credit card use, savings account, insurances, and daily purchases, which of course are debits covered by my income from translations. So what is a dedicated account? ▲ Collapse
| | | | | What about business expenses? | Dec 10, 2014 |
I pay my business expenses with checks from my dedicated bank account. Isn't that the way a business should be run?
The expenses, I should add, get reported as tax time. It's so much simpler to have all the transactions in the same place.
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