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Banking and Credit For Your Mobile Car Wash
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As a business you will obvious need a bank account you can use to deposit income and make payments. For liability reasons, it is important that you set up a bank account for your business that is separate from your personal accounts. Business expenses and income should all flow through your business bank accounts.
If you have a relationship at a bank with your personal checking and savings, it may make sense to open your business account with them as well – assuming you are satisfied with their levels of service. Your personal bank may also offer business credit cards in addition to checking. Have a credit card with your bank is nice since it usually ties directly to your checking account.
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The reason it is so important to keep your business and personal finances separate is to prove that you, as an individual, and the business that you own are separate entities. If you start to commingle expenses between your personal and business accounts, a good lawyer can easily justify that you and your business should be treated as the same entity. What does this mean, exactly? Simply put, if you get into a lawsuit and you have not maintained a clear line between your personal and business affairs, you will probably lose any liability protection you may have for your personal assets.
Applying for a business bank account is a very straightforward process. You typically will need a proof of identification as well as your employee tax identification number or social security number. While you are opening up your business bank account, you should also apply for a business credit card. This will make it much easier for you to pay your business expenses.
Your new business will not have a credit history. You will most likely need to personally cosign your application – at least for your credit card. As such, your personal credit history comes into the picture. If you have poor credit, this will impact the ease of which you can apply to, and get approval for, business credit cards.
The same principles apply when selecting a business credit card that they do when finding a personal credit card. Find a card that has a reasonable credit limit, competitive annual percentage rate (APR), add-on services of value and points. You will be surprised how quickly these points add up when using your card to pay for business supplies. You can then use these points for travel or to offset the cost of other business expenses.
Many banks also offer extremely competitive rates for payroll processing and tax withholding services. Due to all of the products available, we recommend scheduling a sit-down appointment with a bank manager to discuss your banking needs.
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