A new or separate bank account is generally required when you form a new entity. This is true because the new entity is considered a legal entity separate and apart from the individuals who operate it. This legal separation of the entity and individuals is one of the reasons why you get limited liability protection. To preserve your liability protection, it is essential to segregate the business funds from your own personal funds. You should never co-mingle business and personal monies and should not pay personal expenses with business funds. This is best accomplished by setting up a new or totally separate bank account for the new entity.