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Using Business Account for Personal Checking
I have been using my business account for personal checking. What are the consequences of such actions, and is there a way to open a personal checking account if I'm on ChexSystems? Which banks will allow me to do so?
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 The answer to your first question largely depends on the type of business organization involved. If you are a sole proprietor, there's no particular legal constraint to commingling personal and business funds. You might, however, have problems trying to sort things out for completion of your annual tax return. Your bank might ask you at some point to separate your personal and business transactions into separate accounts, too.
If your business is a partnership, LLC or corporation, there can be legal consequences to your actions. Creditors, owners or others with legitimate claims on the assets of the business (other than you) could bring legal action if they believe or suspect that you have diverted business funds to your own use. Even if you have not done so, using the business's account for your personal transactions could give that impression. That can also cause hassles at tax time.
Banks establish their own policies and procedures for accepting new customers, even when the prospective customers have records with ChexSystems. We don't know which banks might welcome your personal business. That will take some investigatory work on your part. Start with the bank that currently holds your business account.
Published on BankingQuestions.com 1/14/10
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