How to Transfer Money from a Business Account to a Personal: Bank of America

If you’re a Bank of America customer, you may have wondered whether it's possible to transfer money from a business account to a personal account.

In short: yes, you can.

This guide will cover the rules and regulations you’ll need to consider, along with any potential tax implications. You’ll also learn how to transfer money from a BofA Business to a personal account in a few simple steps.

Find out more about Wise Business

Is It Legal to Transfer Money from BofA Business to Personal?

It’s legal to transfer money from your Bank of America business account to your personal account. However, there are some regulations and tax rules to consider before you go ahead and make the business to personal transfer.

When you make a transfer of this kind, the funds are deemed “income.” This means you must have paid any associated taxes on it before it can enter your personal account. In short, provided you have filed and paid taxes that are due on the money you’re transferring, you shouldn’t have any problems. It's best to consult with a tax expert if in any doubt.

The other main consideration is whether making this transfer will severely impact your business’s finances. It’s strongly recommended that you don’t go ahead with a business to personal account transfer if it leaves you at risk of insolvency in your business.

Steps to Transfer Money from a Bank of America Business to Personal Account

Transferring money from a BofA Business account to a personal account is relatively straightforward when you use the online banking service.

Here’s a simple step-by-guide to making a transfer from your BofA Business to your personal account based on whether you use online banking or the mobile app:

How to Transfer Money From Business to Personal Using Bank of America Online Banking

1. Log into your business account
2. Go to the Zelle transfers tab
3. Select “transfer between my accounts!”
4. Input your business account as the sender (from) and your personal account as the recipient (to)
5. Enter the transfer amount and complete the transaction

Transfer From BofA Business to Personal using the App

1. Make sure both your personal and business accounts are enrolled with Zelle
2. Log into the Bank of America mobile banking app with your business account credentials
3. Tap “pay & transfer” and select Zelle
4. To make the transfer, select your personal account as the recipient and complete the transaction

Common Issues and How to Avoid Them

There are several financial management issues you might run into down the line when transferring money between your business and personal account at Bank of America.

Overdrafts & fees

You have to be mindful not to incur an overdraft when transferring money from your business account. This way you could be charged for this with an overdraft fee.

You should also check transfer limits to make sure you won’t exceed it when you make the payment. Zelle internal account transfers are generally fee-free, but wire transfers often aren’t.

Whenever you make a transfer, even if it's between your own accounts, you should be mindful of incurring fees. Pay attention to whether the cost of the transaction makes sense.

It might make more sense to transfer extra money if you think you'll need more funds later. This can help you avoid unnecessary fees.

Audit documentation

When transferring money from your business account to your personal account, you need to make sure you’re aware of any ramifications. Make sure to clearly document it for your records.

It’s important to keep clear and organized records of your business finances. This way, when tax season rolls around, you won’t owe extra or be liable to pay additional fees.

Here are a couple of money transfer tips:

• When you make a transfer to your personal account from your business account, add a note to the transaction for posterity. This could be for example, “salary payment” or “owner’s draw” to make bookkeeping easier.
• You should also do your best to save any evidence of the transaction taking place to have more than one reliable source for reconciliation. This could include emails, receipts, and even screenshots.
• Using accounting software like Xero or QuickBooks can help you track each individual transfer you make from your business, and categorize it accordingly.

Try Wise Business: The Hassle-free Business Account

If you like to make secure transfers between your accounts and receive money as if you’re a local, Wise Business could be a viable solution. It accounts for all the major currencies, making it a great fit for your business needs.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in 40+ currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also send money to 140+ countries.

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Wise Business offers you:

• No monthly fees
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• Seamless QuickBooks integration to track bill payments
• Multiple currency management in one place
• The option to receive payments like a local with major currency account details
• 40+ currencies

	Editor & Business Expert:
	Panna is an expert in US business finance, covering topics from invoicing to international expansion. She creates guides and reviews to help businesses save time and make informed decisions. You can read more useful business articles on her author profile.

	Author:
	Sam is a UK-based copywriter with 4+ years of experience writing for SaaS and eCommerce brands. He creates comparison guides, informative blog posts, and covers other finance-based topics.