Purchase Transaction: Use Biz Bank Account or Personal?

May 07, 2025

by a searcher from University of Notre Dame - Mendoza College of Business in Portland, ME, USA

Hi all, very tactical question here. I have a small deal closing next week. No banks involved, it's entirely privately funded. The funds are currently consolidated in a personal bank account, and I have already opened a new business checking account for the acquiring LLC. Is there any legal/accounting/etc reason I should move the money to the new business bank account and pay the seller at closing from there, vs performing the transaction out of a personal account? Does it even matter? Thanks!

Reply by a professional
from Northwestern University in Southborough, MA, USA

Hey Jamie! Good to see you. Hope you’re awesome. My preference is the opposite. I’d move the personal funds into the bank account and wire from there. Think of it this way: You are not going to own the company you’re buying, the company you own is going to own the company. From a forensic accounting perspective, it’s easy to show the equity you put in to the company, which then converted to goodwill. Ultimately it’s an accountant question but perhaps it’s all preference.

Reply by a searcher
from Northwestern University in Chicago, IL, USA

I closed a deal using a wire from a personal account. Personal vs business shouldn’t matter, but I would be sure to familiarize yourself with the wire transfer process (and any limits etc) with whatever bank you plan to use to make sure there won’t be any issues sending the money

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