When starting or growing an ecommerce business, it is generally recommended to have a business bank account. However, it is not strictly necessary to have one to use Shopify.
Advantages of a Business Bank Account
A business bank account offers several advantages for ecommerce businesses:
Separate your personal and business finances: A business bank account helps you keep your personal and business finances separate and organized. This makes it easier to track expenses and income related to your business.
Accept payments: A business bank account allows you to accept payments from customers, such as credit cards, checks, and wire transfers.
Save on taxes: Having a business bank account can help you save on taxes. You can deduct business expenses from your taxes, and having a business bank account helps you keep track of these expenses.
Build business credit: Having a business bank account also helps you build business credit. This can help you get loans or other financial products to help grow your business.
Disadvantages of a Business Bank Account
A business bank account may not be necessary for everyone. Here are some drawbacks to consider:
Fees: Business bank accounts often come with fees, such as monthly maintenance fees, transaction fees, and ATM fees. Make sure to research the fees associated with different accounts before opening one.
Time: Opening a business bank account can be time-consuming. You may need to provide documents such as articles of incorporation, business licenses, and tax forms.
Paperwork: You may also need to keep track of additional paperwork and documents, such as invoices and receipts.
While you technically do not need a business bank account to use Shopify, it is generally recommended having one when starting or growing your ecommerce business. A business bank account offers several advantages, such as helping you keep your personal and business finances separate and organized, accept payments from customers, save on taxes, and build business credit. However, there are some drawbacks to consider, such as fees, time, and paperwork.