Comments on: Opening a Business Checking Account http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sat, 21 Nov 2009 16:42:00 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: GeekMan http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118769 GeekMan Wed, 12 Sep 2007 13:53:14 +0000 http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118769 Flexo; Keeping your accounts together at one bank is admirable, and it's actually what I wound up doing myself, but I don't think that in today's electronic age doing so makes anyone's life truly easier. More emotionally "safe" perhaps, but not really significantly easier. Since most small companies do there bookkeeping and bill paying online it doesn't really matter what bank you do business with as long as it's convenient for the business to make deposits. I didn't choose Wachovia for many reasons, some of which were their check limits, their fees (waived for you, but still) and my personal experiences with their customer service reps. It's also why I ruled out places like BoA and Citibank. I liked Commerce Bank very much because they bent over backwards trying to get my business and their business account offerings were very competitive. No fees for the first year($1,000 thereafter), free online banking, free Visa debit card, free banking by phone, etc. And their interest checking account is even better if you can start with a $1,000 balance from the get-go. However, just like you, I wound up going with a consolidated business checking account with the same bank as my personal accounts. Mostly, because they also had my mortgage and by combining everything I got my bank to waive all fees forever and throw in other great perks like a free safe deposit box and higher interest on my money market accounts. Flexo;
Keeping your accounts together at one bank is admirable, and it’s actually what I wound up doing myself, but I don’t think that in today’s electronic age doing so makes anyone’s life truly easier. More emotionally “safe” perhaps, but not really significantly easier. Since most small companies do there bookkeeping and bill paying online it doesn’t really matter what bank you do business with as long as it’s convenient for the business to make deposits.

I didn’t choose Wachovia for many reasons, some of which were their check limits, their fees (waived for you, but still) and my personal experiences with their customer service reps. It’s also why I ruled out places like BoA and Citibank. I liked Commerce Bank very much because they bent over backwards trying to get my business and their business account offerings were very competitive. No fees for the first year($1,000 thereafter), free online banking, free Visa debit card, free banking by phone, etc. And their interest checking account is even better if you can start with a $1,000 balance from the get-go.

However, just like you, I wound up going with a consolidated business checking account with the same bank as my personal accounts. Mostly, because they also had my mortgage and by combining everything I got my bank to waive all fees forever and throw in other great perks like a free safe deposit box and higher interest on my money market accounts.

]]> By: Flexo http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118764 Flexo Wed, 12 Sep 2007 02:15:38 +0000 http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118764 GeekMan: I have my main personal account with Wachovia, and their customer service has always been adequate or above adequate for me. I try to keep my accounts as consolidated as possible. It would be great if I could get all the neat features, like overnight sweep to a high-yield money market account, unlimited checks, etc., but my business has no need for that at this point, and it isn't worth the expense. What did you find lacking at Wachovia? GeekMan: I have my main personal account with Wachovia, and their customer service has always been adequate or above adequate for me. I try to keep my accounts as consolidated as possible.

It would be great if I could get all the neat features, like overnight sweep to a high-yield money market account, unlimited checks, etc., but my business has no need for that at this point, and it isn’t worth the expense.

What did you find lacking at Wachovia?

]]> By: GeekMan http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118763 GeekMan Wed, 12 Sep 2007 02:06:34 +0000 http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118763 I'm interested in your methodology for deciding on which bank to use. Mostly, that's because Wachovia's business accounts seemed lacking to me when I compared the different offerings three months ago for my business accounts. I’m interested in your methodology for deciding on which bank to use. Mostly, that’s because Wachovia’s business accounts seemed lacking to me when I compared the different offerings three months ago for my business accounts.

]]> By: Flexo http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118736 Flexo Sun, 09 Sep 2007 18:38:05 +0000 http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118736 Thanks for the info, Ryan, I'll check that out. Thanks for the info, Ryan, I’ll check that out.

]]> By: Ryan http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118735 Ryan Sun, 09 Sep 2007 18:27:07 +0000 http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118735 Double check that the $5000 limit isn't just for cash deposits. I am a branch manager for a large national bank and I know that our basic business account can have the first $5k deposited for free and then after that there is a fee. That is for cash only, you can deposit as much as you want with checks or electronically. You definitely got it right that the bank wants your money (that's how we make money) but taking in a lot of cash costs us money: time for the teller to count/strap it, staying within branch cash limits, cash shipments, etc. Double check that the $5000 limit isn’t just for cash deposits. I am a branch manager for a large national bank and I know that our basic business account can have the first $5k deposited for free and then after that there is a fee. That is for cash only, you can deposit as much as you want with checks or electronically.

You definitely got it right that the bank wants your money (that’s how we make money) but taking in a lot of cash costs us money: time for the teller to count/strap it, staying within branch cash limits, cash shipments, etc.

]]> By: Flexo http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118728 Flexo Fri, 07 Sep 2007 19:27:26 +0000 http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118728 FrugalTrader: LLCs don't have any tax advantage of an unincorporated sole proprietorship as far as I know, but you do get the separation of your assets from your business's assets (if handled correctly, which I am still working on). Robin: Right now I have my side income broken down by income type, but not by project... I'll work on getting some numbers together. FrugalTrader: LLCs don’t have any tax advantage of an unincorporated sole proprietorship as far as I know, but you do get the separation of your assets from your business’s assets (if handled correctly, which I am still working on).

Robin: Right now I have my side income broken down by income type, but not by project… I’ll work on getting some numbers together.

]]> By: FrugalTrader http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118703 FrugalTrader Thu, 06 Sep 2007 17:57:57 +0000 http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118703 Do LLC's come with tax advantages? Here in Canada, you're either incorporated or private. Not much choice other than that. Do LLC’s come with tax advantages? Here in Canada, you’re either incorporated or private. Not much choice other than that.

]]> By: Robin http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118702 Robin Thu, 06 Sep 2007 17:56:03 +0000 http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118702 I'm probably being nosy, but are you willing to give more detail on the percentages that make up your side business income? It'd be interesting to me to better understand the components. I’m probably being nosy, but are you willing to give more detail on the percentages that make up your side business income? It’d be interesting to me to better understand the components.

]]> By: Flexo http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118700 Flexo Thu, 06 Sep 2007 17:07:37 +0000 http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118700 I created a Limited Liability Company, and the blogs and other projects fall under that. I created a Limited Liability Company, and the blogs and other projects fall under that.

]]> By: FrugalTrader http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118698 FrugalTrader Thu, 06 Sep 2007 16:24:39 +0000 http://www.consumerismcommentary.com/2007/09/06/opening-a-business-checking-account/#comment-118698 Flexo, what kind of business entity do you have your blog under? Flexo, what kind of business entity do you have your blog under?

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