Bank Account-Business or Personal?

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Discussion Overview

The thread explores the experiences of participants regarding the use of separate bank accounts for their Pampered Chef business activities, discussing whether to use personal or business accounts and how they manage their finances related to their consulting work.

Discussion Character

  • Anecdotal
  • Opinion-based

Main Points Raised

  • One participant, identifying as a consultant, mentions using a separate personal account for Pampered Chef to keep finances organized.
  • Another participant shares their experience of using a personal account and highlights the ease of managing finances this way.
  • Several users mention withholding taxes from their commissions, with varying percentages and methods discussed.
  • One participant notes that they do not save for taxes, relying on deductions to manage their tax obligations.
  • Another participant describes using a separate business account to avoid confusion and keep expenses organized.
  • Some participants express satisfaction with using personal accounts due to lower fees and easier management.
  • One participant discusses switching banks for better offers related to their business account.

Areas of Agreement / Disagreement

Views differ on whether to use personal or business accounts, with some participants favoring personal accounts for simplicity, while others prefer business accounts for organization.

Contextual Notes

Participants share personal experiences and preferences regarding financial management as Pampered Chef consultants, without implying any official guidance or recommendations.

Who May Find This Useful

Consultants considering how to manage their finances related to their Pampered Chef business may find the shared experiences relevant.

A
amyry
Messages
17
Just wondering if you have a separate account for PC- do you get a business one or personal?
 
I have a seperate account for PC. It is just a personal one. It makes it easier for me to keep things straight. I also have a savings account that I withhold taxes from my commission check and put them in there until the end of the year at tax time.
 
I have a personal account. I told the lady at the bank what I was going to use it for and she said I could have a personal.
 
jrstephens said:
I have a seperate account for PC. It is just a personal one. It makes it easier for me to keep things straight. I also have a savings account that I withhold taxes from my commission check and put them in there until the end of the year at tax time.
Click to expand...

If you don't mind my asking, do you withhold a certain percentage or how do you decide? I didn't set any money aside for this year since I've only been in PC since October, but I'd like to start putting some money away for that purpose.

Thanks,
Kearstin
 
kearstin said:
If you don't mind my asking, do you withhold a certain percentage or how do you decide? I didn't set any money aside for this year since I've only been in PC since October, but I'd like to start putting some money away for that purpose.

Thanks,
Kearstin
Click to expand...

I do not mind at all. I withhold .062 for Soc Sec and .0145 for Medicare. Since we match that, I just double it after I figure it. If you go to www.irs.gov you can download the tax table. I treat my check as a "weekly: check. I also go to my state's revenue department website and get their tax table and do the same.

Some people just hold out 25%, but I do payroll at work, so, I do it like my regular payroll check.
 
I have a seperate personal acct. I used for my old Avon Biz. Good idea about putting taxes away, something I should probably do each paycheck!
 
I use my regular personal bank account for my PC stuff and don't save for taxes. I write a lot off so I haven't had to pay and if I did it wouldn't be on much!
 
I have a seperate personal account.
 
If we have a loss, we don't have to pay taxs right? We only have to pay taxs on the "profit"? Going this friday to the tax lady
 
I have a seperate personal account for my PC stuff... I did have it in one accoutn at first but it got way too much really quick. I would suggest also that you might want to sign up for online banking it makes things alot easier intesad of waiting for a stupid monthly bank statement.
 
I have a seperate personal account for my PC related stuff.
 
Mine is all separate! It would be too confusing if it wasn't.
 
I also have a seperate account for PC. I find it just too difficult to not do. I also do not hold out taxes out of my check.
 
jrstephens said:
I do not mind at all. I withhold .062 for Soc Sec and .0145 for Medicare. Since we match that, I just double it after I figure it. If you go to www.irs.gov you can download the tax table. I treat my check as a "weekly: check. I also go to my state's revenue department website and get their tax table and do the same.

Some people just hold out 25%, but I do payroll at work, so, I do it like my regular payroll check.
Click to expand...

Thanks for the info, Jennifer. I will check the website so I can start the year off on the right foot!!
 
amyry said:
Just wondering if you have a separate account for PC- do you get a business one or personal?
Click to expand...

I have a seperate personal account. It's easiest that way to keep all your PC stuff seperate, plus....Business accounts per se....usually have higher balance requirements and fess.
 
I just use my own checking account. That way I know if something happens like a check not comming through there is money in there to cover it. I have been doing it that way since August and haven't had one problem.
 
Seperate Business account I have. I opened an DBA called Inspirations by Jilleysue and used my Social Security number. That way I got a different ATM card in a differnent color to keep things organized. If I would have opened another personal account, I would have gotten all confused. Now all my commissions go into that account. All my expenses come that that account and I knew which ATM card to use.
 
Jilleysue said:
Seperate Business account I have. I opened an DBA called Inspirations by Jilleysue and used my Social Security number. That way I got a different ATM card in a differnent color to keep things organized. If I would have opened another personal account, I would have gotten all confused. Now all my commissions go into that account. All my expenses come that that account and I knew which ATM card to use.
Click to expand...

Lemme guess - the card is PURPLE??
;)
 
I have a separate account for my Pampered Chef business. It is a personal checking account and is free from service charges. Our family account is with a credit union, but my Pampered Chef account is with another bank.

Lisa
 
I have a separate checking account for PC as well...that way all PC $ goes in, shows are paid for, commissions checks go in, expenses go out - and I know exactly what is what.
 
dannyzmom said:
Lemme guess - the card is PURPLE??
;)
Click to expand...

OH YOU GOT JOKES :D !!! HAHAHAHAHA. Think you're funny huh. LMAO!!!
I am going to go to CHICAGO as the PURPLE PEOPLE (PC)EATER, bet you will all know who Jilleysue is then huh.

Ok..back to my manuals...Funny girls!!! :D
 
OH and A little off topic....but do you know..every show this week that I have watched has shown Chicago on TV. I watched the girls next door and they were in Chicago, ER is based in Chicago, Good Eats had a show about Chicago and Pizza, some thing else. I said to Kevin...is someone trying to tell me something???? It looks sooo clean and nice there.

So to get back on topic. I guess I'll have to start filling up my new BANK ACCOUNT so I can go......
 
dannyzmom said:
I have a separate checking account for PC as well...that way all PC $ goes in, shows are paid for, commissions checks go in, expenses go out - and I know exactly what is what.
Click to expand...
This is the way I do things too. Also, I use to have a personal account but my bank offered a totally free business account with all kinds of rewards and they kept talking to me about it, so finally I sat down with the lady and it worked out great. I also have it at an entirely different bank then my joint personal account with my hubby! Then it's all my knowledge and it's mine! Keeps everything way seperate and way more organized and less confusing!:D ;)
 
I use a personal checking account for my PC account. I was at one bank, but found another that was offering $75 free if you had direct deposit and auto-pay. Our comm checks are direct deposit, and debits for shows are considered auto-pay (since they aren't through the bank's debit card and are initiated by PC). That money paid for supplies!

Now's the time of year that a lot of banks offer things like that, so it's a good time to consider switching.
 
Jilleysue said:
OH YOU GOT JOKES :D !!! HAHAHAHAHA. Think you're funny huh. LMAO!!!
I am going to go to CHICAGO as the PURPLE PEOPLE (PC)EATER, bet you will all know who Jilleysue is then huh.

Ok..back to my manuals...Funny girls!!! :D
Click to expand...

We're going to see Jilleysue walking across stage IN A PURPLE DRESS!!!!
 

Frequently Asked Questions

Should I use a personal bank account for my Pampered Chef business?

While it may be tempting to use your personal bank account for your Pampered Chef business, it's generally advisable to open a separate business bank account. This helps keep your personal and business finances distinct, making it easier to track expenses, manage cash flow, and prepare for tax season.

What are the benefits of having a business bank account?

A business bank account offers several advantages, including easier expense tracking, professional credibility, and simplified tax preparation. It also helps protect your personal assets by separating your business liabilities from your personal finances.

Can I use a personal account for business transactions if I’m just starting out?

While you can use a personal account when you're just starting out, it's recommended to transition to a business account as soon as possible. This will help you establish a clear financial record for your business and avoid potential complications down the line.

What documents do I need to open a business bank account for Pampered Chef?

To open a business bank account, you typically need to provide documents such as your business license, tax identification number (EIN), and any formation documents if your business is an LLC or corporation. Check with your bank for specific requirements.

Will having a business bank account help with tax deductions?

Yes, having a dedicated business bank account can simplify the process of tracking deductible expenses. It allows you to easily categorize and document your business-related transactions, which can be beneficial during tax season and when claiming deductions.

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