Why a Separate Account Matters
The single biggest bookkeeping improvement any solo business owner can make is opening a dedicated business checking account. It creates a clean audit trail, makes bookkeeping 5x faster, protects LLC liability (see "piercing the corporate veil"), and simplifies year-end filings. This is the first thing every CPA will ask you to do.
What You Need to Open One
For a sole proprietor: your SSN, driver's license, and a DBA registration if you use a business name. For an LLC: your EIN (from irs.gov, free, 10 minutes), Articles of Organization, and Operating Agreement. Most banks let you open online in under 30 minutes.
Best Options for Small Businesses
Look for: no monthly fee (or waivable), unlimited transactions, mobile check deposit, easy sync to accounting software, and a debit card. Popular no-fee options in 2026: Bluevine, Relay, Mercury (all online), or credit unions locally. Big banks charge monthly fees but come with more branches.
The First Deposit
Once open, run all business income into this account and pay all business expenses out of it. Transfer yourself a regular "owner draw" or "salary" to your personal account — that's how you pay yourself. This one habit alone will save 20+ hours at tax time.