More threads by SheckyS01

SheckyS01

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Sep 14, 2021
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Hi all,

So I'm buying a business and I'm new to this.

I have an attorney who is about to create an S-Corp for me. It should be done by tomorrow. And then next step is - I need a bank account.

How does this work? Do I need a special commercial bank? My current bank that I use for my personal stuff is a credit union. And they say they can set up a commercial checking account for me. Is that what I want? Is there such a thing as a commercial saving account? Is checking all I need?

What should I be looking for in a commercial bank account for my S-Corp?

Are there some big national bank chains that you would recommend?

TIA
 

VirtualGlobalPhone

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Emphasize on product and service you are planning to offer to customer instead of deep diving into a simple bank account. There is not much you can take advantage of what type of bank account u have .. its how much value you earn from the product / service.

Best wishes.
 

djbaxter

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Unless you have legal advice that says otherwise, I would say just go with your current credit union's offer to set up a commercial account for you. Much simpler, they already know you, and you can probably manage both accounts online with the same login.
 

SheckyS01

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Sep 14, 2021
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Unless you have legal advice that says otherwise, I would say just go with your current credit union's offer to set up a commercial account for you. Much simpler, they already know you, and you can probably manage both accounts online with the same login.
Thanks. The only thing is... the credit union doesn't offer credit cards, only debit cards. So I am wondering if I really NEED a credit card. In my personal finances, I almost never use credit cards, it's always debit. I don't want to pay interest. So I am only spending money I already have.

Not sure if that's wise for a business. I suppose I can always get a credit card from someone else and just not use it unless I need it.
 

djbaxter

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I rarely use credit cards these days. I have a verified business PayPal account linked to my bank account so it's rare that I even need a credit card. And as you say, you can always get a credit card elsewhere.
 

KizaruMars

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Jul 12, 2022
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If you are new to your business, you must learn a lot of additional information. To master it, you will need to take either webinar or get to know a circle of people who specialize in a particular area. Now there's investing, buying and selling stocks, investing in cryptocurrency, etc. So to understand how everything works, I think it will be useful for you to look at https://www.moneyunder30.com/ . Personally, the easiest part was mastering the foreign exchange market. This is one area where I think there is a chance to influence the general market situation. I would be interested to hear your opinion.
 
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Flopbot

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Oct 1, 2022
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SheckyS01

First, I’m not an accountant, a lawyer, or a banker. Take what I say with a grain of salt.

To answer your question, when we opened our business, the main thing the lawyer stressed was that everything stay completely separate! Things like that:
  • Yes, you can have your accounts at the same banks; but you need to keep your business and personal account distinctly separate.
  • Separate account numbers.
  • Don’t pay business expense with ersonal checks and visa-versa.
  • If you give money to the business in the form of capital, physically transfer it out of you personal account and into your business account.
Beyond that, it really came down to personal preference. Which banks syncs with your accounting software, which bank is easiest to work with, which bank offers the best perks, which banks is closest to your house, which bank won’t threaten to hold your money hostage if you think something that they don’t like (hint starts with a “P”), etc., etc., etc.

Personally, we have a separate business CC - completely different bank than where our business account resides - in the business’s’ name. Again, keeping business and personal separate.

Hope that helps.
 

hashbasket

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Sep 5, 2022
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Choosing a bank account for your startup is one of your most important decisions. That's why you should be careful which bank account you choose.
 

Dora Wi

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Thanks. The only thing is... the credit union doesn't offer credit cards, only debit cards. So I am wondering if I really NEED a credit card. In my personal finances, I almost never use credit cards, it's always debit. I don't want to pay interest. So I am only spending money I already have.

Not sure if that's wise for a business. I suppose I can always get a credit card from someone else and just not use it unless I need it.

I also deem credit cards unnecessary, I wouldn't want to use one. However, in the US, isn't it good for your credit score to have a credit card that you manage properly? In case you are ever in a situation where you want/need to take out a loan, I would consider this.
 

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