Joined Sep 2023
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Forum Thread
Using Chase Personal Account For Some Side Business Transactions
January 18, 2024 at
11:25 AM
Thread Details
Having a Chase Total Personal Checking account for many years with payroll direct deposit from my employer as my primary source of income, I also take on some self employment as a side hustle, such as accepting payments from private clients though paypal, or doing consulting work for organizations and receiving a 1099-NEC for my services. I also have a book and receive royalties from Amazon as well as my publisher. Pretty much everything is ACH'd into the account, though there are also some checks. Chase can see all of this if they want to. What was once occasional extra income has become more substantial. Everything is sole proprietorship and reported on my personal taxes using a Schedule C. It is self employment income. I have no problem separating my finances with just my personal checking account, and this has been going on for years, and Chase has never questioned whether i'm using the account for some buisness transactions in addition to my personal finances. I've heard that Chase can abruptly close your personal checking account without warning if they feel you are using the account for business purposes, but I have been using the account as I describe for years. A business checking account is not free, but I'm wondering if I should open one just to be safe. What do you all think?
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That said, there is nothing wrong with transferring money in and out of personal accounts from business accounts. Having money go directly into the personal account from customers is not something I would do if the income was substantial because I simply would not want to be running as a sole prop in that situation as you have no corp liability shield or protection.
If you wanted to do it as an LLC instead, you would form an LLC and open a business bank account under that EIN. Of course then you incur the expense of the LLC and have to pay to file a corporate tax return each year, but if you have enough income and expense write offs it would likely be worth the trouble.
Depending on your business and how much potential there is to get sued there, you might also want to consider getting a corp liability or personal umbrella policy to protect you.
My 2 cents.
https://slickdeals.net/f/17241628-ink-business-cash-credit-card-750-bonus-cash-back-w-6k-spend-in-first-3-months?v=1&src=
https://www.chase.com/business/ba...lsrc=aw.ds
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Maintain a $2,000 deposit minimum daily balance
Spend at least $2,000 on purchases with a Chase InkĀ® business credit card
Receive $2,000 in deposits from QuickAccept transactions or other eligible payment solutions
Link a Chase Private Client checking account
Provide valid, qualifying proof of military status (active or veteran)
Plus you can open an Amazon business account too!