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Business Banking

The single most important rule of small business finance: keep business and personal money separate. Everything else flows from that.

Why Separation Matters

If you formed an LLC or PLLC to protect your personal assets, commingling funds can pierce the corporate veil. A court can decide your business isn't really a separate entity, and your personal assets become exposed to business liabilities. All the work of forming the LLC is undone.

2. Tax accuracy

At tax time, your accountant needs to know which expenses are business and which are personal. If everything flows through the same account, you or your bookkeeper will spend hours untangling it — and you'll miss deductions you're entitled to.

3. Clarity about the business

You cannot tell if your practice is healthy if your practice account also pays your Netflix subscription. Separation gives you honest numbers.

4. Professionalism

Employers, landlords, and vendors take a business check more seriously than a personal one.

Accounts You Need

At minimum, every DPC practice should have:

Account Purpose
Business checking Day-to-day operations. Membership deposits in, expenses out.
Business savings Cash reserves and tax savings (see below)
Business credit card Expense tracking, cash-back rewards, short-term float

Larger or more complex practices may also want:

Account Purpose
Tax savings sub-account Hold aside estimated taxes so they're not spent
Payroll account If you have employees
Merchant processing account For card payments (may be bundled with processor)

Opening a Business Account

What you'll need

  • EIN (Employer Identification Number) from the IRS — free, 15 minutes online
  • Formation documents — your LLC / PLLC / PC articles of organization
  • Operating agreement (some banks require it, some don't)
  • Government-issued ID
  • Business address (can be home address for most small DPCs)
  • Initial deposit (varies, often $25–$100)

Which bank?

There is no single right answer. Trade-offs to consider:

Big national banks (Chase, BofA, Wells Fargo)

  • Pros: branches everywhere, robust online tools, merchant services, business credit card options
  • Cons: fees, rigid policies, slower customer service for small accounts

Community banks and credit unions

  • Pros: relationship banking, easier conversations, often better rates, more flexible on small business loans
  • Cons: fewer branches, sometimes dated online tools, smaller ATM networks

Online-only business banks (Mercury, Relay, Bluevine, Novo)

  • Pros: no fees, slick software, fast setup, great for digital-first practices
  • Cons: no cash deposits, no branches, customer service via chat

A reasonable default

Open your primary checking at a community bank or credit union where you can build a relationship (useful later for lines of credit), and open a secondary online business checking for its software and tools. Many DPC owners use a hybrid setup like this.

The Tax Savings Account Habit

One habit will save you from the most common first-year catastrophe: set aside taxes every time money comes in.

How it works

  1. Open a separate business savings account labeled "Taxes."
  2. Every time you pay yourself — or every week, or every deposit — transfer 25–35% of net income into that account.
  3. Do not touch it. It exists to pay quarterly estimates and your year-end tax bill.
  4. Work with your CPA to dial in the exact percentage. It varies with entity type, state, and deductions.

This isn't optional discipline — it's the difference between a calm April and a panicked one. See Understanding Business Taxes for details.

Business Credit Cards

A business credit card is not a loan — it's an expense-tracking and reward tool, used responsibly.

Benefits:

  • Every business purchase funnels into one statement → easier bookkeeping
  • Most offer 1.5–2% cash back or travel rewards
  • Builds business credit history separate from your personal credit
  • Extra float (21–25 days) between purchase and payment
  • Fraud protection stronger than debit cards

Risks:

  • Carrying a balance at 20%+ APR will destroy a small practice
  • Pay the full statement balance every month. No exceptions.

Good starter cards (typically): Chase Ink Business Unlimited, Capital One Spark, AmEx Blue Business Cash. Evaluate current offers when you're ready.

How Many Accounts Is Too Many?

A simple rule: add an account only when it solves a real problem.

Minimum viable: 1 checking + 1 savings + 1 credit card.

Recommended: Above + dedicated tax savings sub-account.

Only if needed: Payroll account, separate merchant account, sinking fund for a big purchase.

You don't win points for complexity. A few well-labeled accounts beat a dozen you forget to reconcile.

What to Do Monthly

  • Reconcile every account against the statement
  • Review transactions for errors or fraud
  • Transfer tax savings if not automated
  • Look at balances and ask: "Do I have enough cash for the next 60 days?"

Ten minutes. Every month.

Common Mistakes

  • Using a personal account "just to start." You'll never untangle it cleanly.
  • Running personal expenses through the business card. Don't. Even for small things.
  • Using the business card for unpaid balances. If you can't pay it off monthly, stop using it.
  • Never talking to your banker. A banker who knows your practice is an ally when you need a line of credit or a loan.
  • Paying yourself randomly. Develop a rhythm (weekly, biweekly, monthly) so cash flow is predictable.

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