If you are working with an EIN and have not formed a business entity, you are functioning as a sole proprietor. A sole proprietor is personally responsible for all business debts, so I don't see any advantage to opening a business checking account. I would open a separate bank account to simplify bookkeeping/record keeping.
As far as your credit card question, I would get a credit card at a different bank/institution from where you get your bank account due to cross-collateralization. Credit cards are unsecured debt. However, if you have your bank account and your credit card from the same institution, the bank can seize the funds from your account to pay your credit card bill if you are late on payments. This also applies to mortgages and business loans, so we never keep our savings/checking at institutions we have credit accounts with. We pay our bills, but why add the risk if you don't need to?
As far as your credit card question, I would get a credit card at a different bank/institution from where you get your bank account due to cross-collateralization. Credit cards are unsecured debt. However, if you have your bank account and your credit card from the same institution, the bank can seize the funds from your account to pay your credit card bill if you are late on payments. This also applies to mortgages and business loans, so we never keep our savings/checking at institutions we have credit accounts with. We pay our bills, but why add the risk if you don't need to?
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.