You don't specify which country you are in, so my answers are more from a best practice view than a legal view..
I don't intend on using it for personal use, but I mean it's just as possible.
This is a dangerous proposition.. You shouldn't co-mingle business expenses with personal expenses. If there is a chance this will happen, then stop, make it so that it won't happen.
The big danger is in being able to have traceability between what you are doing for the business, and what you are doing for yourself. If you are using this as a "staging" account for investments, etc., are those investments for yourself? Or for the business? Is tax treatment on capital gains and/or dividends the same for personal and business in your jurisdiction? If you buy a widget, is the widget an expense against business income? Or is it an out of pocket expense for personal consumption? The former reduces your taxable income, the latter does not.
I don't see the benefit of a real business account because those have features specific to maybe corporations, LLC, and etc. -- nothing beneficial to a sole proprietor who has no reports/employees.
The real benefit is that there is a clear delineation between business income/expenses and personal income/expenses.
This account can also accept money and hold it from business transactions/sales, and possibly transfer some to the personal account if there's no need for reinvesting said amount/percentage.
What you are looking for is a commonly called a current account, because it is used for current expenses. If you are moving money out of the account to your personal account, that speaks to paying yourself, which has other implications as well.
The safest/cleanest way to do this is to:
- Have separate accounts for personal and business
- Have a separate ledger / accounting book of record for each
- If you have to use the business account for personal reasons, for accounting purposes you now have a notes receivable to the business from yourself: this shows clear traceability that the business purchased something on behalf of you for personal use, and that it is a de-facto asset (i.e. a note receivable); you then pay back the note receivable. The net effect is the same (you still spend $X), but it clearly identifies which entity paid $X (you, or your business)
While this may sound like overkill, it is the only way to guarantee that income/expenses are allocated to the correct entity (i.e. you, or your business).
From a Canadian standpoint:
- Use an RBC e-business account; this is a no-fee account for electronic only transactions, and minimal fees for non-electronic (e.g. cheque deposit at an ATM) transactions.
- Incorporate. I shied away from incorporating originally, but it makes things so much easier from an accounting perspective.