What the Biz?!
Brigitte Vegter, Daniel Proczko, and Richard Piet are 3 entrepreneurs sharing their journey to build their businesses beyond 6 figures. Each WhatTheBIz?! episode features a discussion surrounding a business building topic, recent events from the trenches of running a business, balancing life, and all the WTB in between. Enjoy entertaining banter, highly valuable resources and tools, and in less than 60min.
What the Biz?!
When (and Why) to Open a Business Bank Account
Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.
In this episode, Daniel and Brigitte tackle one of the most common questions for new and growing entrepreneurs: When is the right time to open a business bank account? If you are still running your business out of your personal checking account, you are effectively "piercing the corporate veil" and putting your personal assets at risk . We discuss the major pitfalls of commingling funds—from "bookkeeping nightmares" to missed tax deductions—and why the best time to separate your money is actually now.
Show Notes
This episode serves as a 2026 guide for business owners to protect their assets and gain financial clarity by separating their personal and business worlds.
I. The Dangers of Commingling Funds
- The Tax Leak: Mixing accounts makes it nearly impossible to track real business expenses, often leading to thousands of dollars in missed tax deductions
- IRS Red Flags: The IRS expects separation; if you are audited and your accounts are blurred, they may disallow entire expense categories like meals and entertainment
- Piercing the Corporate Veil: Even with an LLC, using your business account for personal expenses can allow attorneys to bypass your legal protections in a lawsuit
II. How to Set Up Your Business Identity
- Form an LLC: Establish your business as a legal entity.
- Get an EIN: Apply for your "Social Security number for your business" (it's free and takes seconds) .
- Choose the Right Bank: Look for free business checking, mobile banking, and software integration. Consider local credit unions for relationships or "FinTech" options like Relay for "envelope-style" savings.
III. The Action Step: Taking an "Owner Draw"
- Stop using the business card for personal errands. Instead, perform a clean transfer from your business account to your personal account labeled as an "Owner Draw" . This keeps your books clean and your liability low.
IV. The WTB Moment of the Week
- Win (City of Kalamazoo): Daniel highlights the city’s proactive 10-year vision planning that utilizes neighborhood meetings to gather direct community feedback. Insight: Even municipalities benefit from listening to their "customers" to drive visionary growth
- The Five-Year Warning: Brigitte discusses a local business for sale and the reality of succession planning. Insight: Selling a business is often a five-year process; you need to show consistent growth and clean records long before you're ready to exit.
Liked this show? SUBSCRIBE to this podcast on Spotify, Apple, Google and more. Catch past episodes and show notes at WhatTheBiz.com.
Join the WhattheBiz?! newsletter to be the first to learn about upcoming events and specials.
Do you have a topic you'd like us to cover? Leave us a voicemail on WhatTheBiz.com!
*********
Hosts
Daniel Proczko - myPocketMarketing
Brigitte Vegter - Vegter Financial
