for all you one man shows out there…do you have a seperate business checking account?
I guess the only reason to have one is to allow people to write me checks to my company and not me?
I would wholeheartedly suggest getting a business checking account. Of course, be mindful that some accounts have minimum balances and other charges that may affect you in your particular circumstances. You will have a convenient way to differentiate your assets, keep track of your expenditures, and it will lend to your credibility.
Absolutely you should. When you’re starting out funds tend to blend together out of necessity, but after you get going the business’s money shouldn’t be considered [I]your[/I] money; keep it separate so you can keep track of it easier and set aside money for expansion and such.
And taking checks in the business name looks much more professional and it’s very easy to setup.
+1
For sure open a business checking account once you become a bigger company you will need it might as well get started.
Also, set yourself up with a personal account so you can pay yourself.
the bank guy said I would simply write a co check to myself. and that I should set up a savings account with it.
What reason(s) did he provide?
are you asking about the savings account? that was just a suggestion that they recommend to help prevent overdrafts etc
as for writing myself a check, he said that’s how most do it. so it keeps my accounts seperate.
that was my biggest q. you do it another way?
I’m finding a lot of requests from insurance to banking that conflicts with the laws.
insurance co are telling me (as though they wrote the laws) if they catch me doing other work besides window cleaning (if that is my coverage) such as pressure washing they will fine me and make me pay a higher rate etc. I had to stop the lady mid sentence and remind her I don’t need insurance to do any work period according to my state. yeah, their “we own you and the world” attitude was getting to me…
then the bank guy said I can’t open a business account until the state sends me my vendor’s license. which again, in ohio not all businesses have to have a license to operate. so basically you can’t open an account in a business name without a license or a registered business name.
that’s two institutions that try to over ride the laws. why does it seem like everyone trys to do everything they can think of, to prevent people from making money or having a job?
I decided I can’t do pressure washing. everyone is telling me this is the highest premium insurance they know of. $2400-3000k a year for pressure washing? holy smokes! I just can’t afford that right now…and of course if I get caught by them they will make me pay it instead of the prem for window cleaning…what a crock of crap. as thought they have the power to tell me what I can/can’t do. I even have to submit my advertisements and undergo full audits every 6 months.
WTF?
sorry for the rant but this kind of stuff gets under my skin when a insurance co thinks they can control everyone and everything you do.
I had to get an EIN # from the feds to get a business bank account, got the EIN with a phone call, the paper copy came several weeks later.
There was a thread about this not to long ago, I would look up a search for it here.
yeah I already knew about the EIN. but they also want something from the state too
Definitely get a business bank account. I have 2 business accounts and all of my personal accounts are with the same bank. I use online banking so whenever I want to draw money out of the business account to put into my personal account, I just do a transfer online. No need to write any checks this way.
A bank is not circumventing any laws in requiring proof. It’s to protect you.
Here’s a link that describes the various benefits of having a Business Checking Account. As always, find a bank that gives you the best offer as far as fee’s go. There are no nuisance fee’s currently attached to the Business account we use.
Business checking account how to open business checking account open business checking account online
You can set up a business checking account as a DBA. IE John doe = doing business as = window cleaning company.inc. That can be set up with your SS#. But if you are going to go all out as it sounds like you are. IE license (if required), insurance etc. People can write checks to your business and you can deposit them. You might as well set it up with your EIN. As far as writing a check to yourself, your bank guy is talking about a paycheck. keep in mind that if you do start writing yourself checks you need to keep your taxes out of that paycheck so you can pay them come tax season. When I first started I did not pay myself a check. I did not see a valid reason for me to be paying two income taxes. one of the business and one on myself. The only good reason I was given to do so, was for social security and unemployment. I do draw a paycheck now. but it’s very small. It smaller then what my employee/s make. If you’re looking for a good bank to start out. Try PNC. I have been using them for 3 years now and love them. Their free business checking is really the only FREE service I have found when it comes to banks. No minimum balance at the end of the month and only $100 to open the account.
https://www.pnc.com/webapp/unsec/Solutions.do?siteArea=/pnccorp/pnc/home/small+business/checking/free+business+checking
Ray,
How do you live if you don’t get a paycheck (or get a very small one)? Do you have another source of income?
Vendor lisence is required for window cleaning in ohio
Yes my wifes income covers all major household expenses. The paycheck I was drawing was enough to cover food, gas, water, electric etc
As a sole proprietor with no employees, I have a business account so people can write me checks and what not. I don’t write myself a cheque, I just draw or transfer money wherever/whenever I want. The government simply sees me as ‘self employed’ and I pay yearly taxes based on all my earnings for the year regardless of where it comes from.
My mortgage, food, property taxes and most other bills all get paid with money I earn so what ever money Beautiful View brings in, [B]is my[/B] money. I can spend it on personal expenses, throw it into advertising, supplies, etc.
But If [B]you[/B] are planning on hiring employees in the future, set yourself up now to do things like a full on employer/business because switching things up later will be a hassle and a bit confusing.
that’s what I was thinking. and he came at me with the write yourself a paycheck thing. which got me wondering about the taxes.
