Is it okay to run my business using my personal bank account?

Some people say they find it easier to deposit cheques to their personal bank account or charge business expenses to their personal credit card, but this puts them at risk. We recommend that you have a separate bank account and credit card for your business. Never combine personal and corporate banking. 

A dedicated business account helps you keep accurate records (which are required by law) and separates expenses, which vastly simplifies tax preparation and prevents you from accidentally deducting an ineligible expense – like your kid’s soccer program or weekly grocery run or worse yet you may forget to deduct an eligible business expense. 

Just like your personal credit score, your business credit score must be slowly built up over time. A small business bank account will help you establish a credit profile so you can apply for business credit cards, loans, or mortgages in your business’ name in the future. The better your credit score, the better the terms your bank will offer when it comes time to borrow money. Lenders also usually require borrowers to have a business bank account when applying for business loans. Depositing loaned funds into a personal account is viewed as a massive red flag.