What is Business Bank Account?
A dedicated bank account for your business, kept strictly separate from personal money.
A business bank account is exactly what it sounds like — a separate account that only handles business money. It's one of the first grown-up moves you make after forming an LLC, and most banks require your EIN to open one.
Why it matters so much: mixing personal and business funds (called 'commingling') can weaken your LLC's liability protection and turns bookkeeping and taxes into a nightmare. One clean account makes most of your bookkeeping automatic.
Rule of thumb: every business dollar in, and every business dollar out, flows through this account. Your future self, and your accountant, will thank you.
Related terms
Definitions from the Business Dog Glossary — educational, occasionally satirical, never financial advice.