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What two types of bank accounts should business owners have?

tax and liable

liable and personal

personal and business

business and tax

1 answer

Business owners should have business and personal bank accounts.

  1. Business Bank Account: This is essential for separating personal and business finances, which simplifies accounting and tax preparation, and helps maintain legal protection for the business structure.

  2. Personal Bank Account: Business owners still need a personal account for their personal expenses and finances, which should remain separate from the business accounts to ensure clarity and legal protection.

Having a separate tax account can also be beneficial for business owners to allocate funds for taxes but is not considered one of the primary types of accounts needed.