I am starting a small business with a partner in a another state. We already have an LLC established. I have done some googling the differences for a business bank account at various banks. Wells Fargo, SunTrust, bank of america. The differences I can see have to do with processing credit cards and dealing with a high volume of money per day. They also provide access to direct deposits.
My business needs a bank account my partner and I can share (between states). After doing some reading I can't find anything to suggest running a business from a regular joint checking is illegal. Our company will not be processing transactions on a daily basis and has no need for credit card processing at the moment. We also do not have a need for direct deposit since there will only be him and myself as employees.
So to the accountants / bankers out there, is there any legal need for us to have a specially marked business account? Is it feasible to operate our very small company from an everyday joint checking?
Not an accountant, but having a separate business account makes things easier for tax and accounting purposes down the road. Take a look at TD bank, they have no fee account for 1st year for businesses.
I used my personal account once, for a very practical and positively critical reason. I had to have overdraft protection, and I could not (yet) apply for that if I opened a new business account.
At the time, I had a lot coming in and going out. The trouble was that some of my automatic deposits (in particular from my CC processor) were often delayed at random, and I sometimes could not delay issuing checks. I did not need a 'formal' line of credit, as the most I'd ever be short was under a thousand dollars.
In cases like that, using a personal account might make sense from a practical or logistical point of view. But barring that, it's much better (for reasons already mentioned) to just setup a business account. If you use your personal account for a 'crutch' as I did, it's preferable if you do that while getting the credit you need for your company.