PDA

View Full Version : For all you guys that do basic services, do you have a business checking account?


DSF1983
04-20-2011, 04:25 PM
Is it worth having a business account from a bank or just have a separate basic checking account?? People's bank has a limit for DBA's which is like 300 check transactions for the month and I have about 20 Customers a week and pay me weekly. Wouldn't I hit my limit down the road lol?? I think they even charge like 30 cents off every check!!! This is stupid!!! I am not that cheap but this stuff adds up in a business.

What banks do you guys have and what are the limits and fee's???

MY QUESTION IS WHAT IS THE BENEFIT OF A BUSINESS CHECKING ACCOUNT?

weeze
04-20-2011, 04:31 PM
i just use my own personal checking account and my customers make their checks out to me...keeps it simple

DSF1983
04-20-2011, 04:34 PM
i just use my own personal checking account and my customers make their checks out to me...keeps it simple

But they wouldn't build business credit or if you want to get a business loan down the road right?

jsslawncare
04-20-2011, 04:38 PM
Don't use credit with lawncare. I use a dba account. Company name with my name, works great-Regions is free.

DSF1983
04-20-2011, 04:48 PM
Don't use credit with lawncare. I use a dba account. Company name with my name, works great-Regions is free.

I am a sole Prop and using have the DBA paper work to show the bank. So I should just have a separate checking account not a business checking account? What is the point for banks making that account?

ChristianJ318
04-20-2011, 05:04 PM
I use my personal account for my lawn business but have a separate account for my other business (which is my full time job) with Chase bank. Its like $10 a month i believe with no limits on transactions. Now that Chase offers deposits by atm and iphone I never have any problems depositing checks from my lawn customers in either account and its EXTREMELY convenient since you can deposit your checks on your time vs trying to make it before closing or waiting till next business day.

JB1
04-20-2011, 06:52 PM
you really need to separate it out.

TuffWork
04-20-2011, 07:34 PM
I have a DBA account, and it is free. The only difference between it and when I used a personal account is that people can write me a check that says my business name now. It can also make it easier to keep your accounting for income and expenses if you do it like this: Only deposit money you made on the job, only take out stuff that's an expense. Then deposit slips are how you claim income, and receipts backed by bank statements are how you claim expenses. With the exception of checks you write yourself (Lawn Service to Personal checking). That's the money you are "paying" yourself with. Do some math on how much you need to keep in there to pay your taxes based on your tax bracket. Then either quarterly or yearly depending on how your set up give your accountant a book with copies of all receipts, deposit slips, and bank statements. Then let them crunch numbers and write them a big fat check. Pray you have some left over.

meets1
04-20-2011, 10:17 PM
I used to do it all the time. Got married, had the joint acct and my acct solo for lawn care. Got bigger, no business credit, which i needed. Bid bigger jobs, etc. Now incorporated, business checks, QUICKBOOKS and all things run smoothly.

I would seperate but dont know your life involvments or obligations so therefore its your call.

DQL10
04-20-2011, 10:33 PM
Seperate accounts. One for business and one for personal.

djagusch
04-20-2011, 10:43 PM
Seperate accounts. Use the bank statements so you don't miss expenses you need to account for.
Posted via Mobile Device

DSF1983
04-20-2011, 11:05 PM
Not sure if you guys understand my question. Should I pick that special thing with People's bank which is called a business checking account and pay the stupid fee's or should I just open up another PLAIN checking account for my business at my credit union bank or people's bank.

GunnPropertyServices
04-20-2011, 11:08 PM
you def need a seperate account just for your business, i would check all your local banks for the one that fits your needs the best. if your gonna do it, do it right

DQL10
04-20-2011, 11:10 PM
I bank with Wachovia with personal and business and they offered me a free business checking account with no strings attached. And I can deposit any amount of checks I want and no need to have a minimum balance or anything like that. They only need your Federal Tax ID number and I believe thats it. They even give you a check card as well.

GunnPropertyServices
04-20-2011, 11:14 PM
Not sure if you guys understand my question. Should I pick that special thing with People's bank which is called a business checking account and pay the stupid fee's or should I just open up another PLAIN checking account for my business at my credit union bank or people's bank.

i dont think a bank will let you open up a regular account and you be able to cash checks under your business name, i would open up a business account the fees are very min and you will be able to cash checks under you business name

DQL10
04-20-2011, 11:23 PM
i dont think a bank will let you open up a regular account and you be able to cash checks under your business name, i would open up a business account the fees are very min and you will be able to cash checks under you business name

I've never been able to cash a check made out to my business. Dont know if this is bank specific or just that they (banks) dont do it in general.

Kelly's Landscaping
04-20-2011, 11:38 PM
I happen to use peoples bank and have a personal account there so does my partner and we of course have a business checking account. Its more professional to have one. Now peoples charges are annoying sometimes around 50 dollars a month I cash a lot more checks then you. But as for business credit please that's dead after 9 years in business its a myth. Even if you have credit in the business name many wont report your transactions so you don't get credit for it. Our AMX business card racks up 45-65000 per year due in full each month. They do not report any positive activity and only report negative if you are 180 days plus late. Same thing with Advanta MC went through that with Sheffields equipment loans. Iv applied for credit with peoples 1.4 million iv deposited in there they couldn't care less they don't give loans to our kind.

So why do I use peoples easy you can bank up to 7 pm in stop and shop on weekdays and 4pm on weekends. Only reason I use them is the convenience of the extra hours.

djagusch
04-20-2011, 11:40 PM
I've never been able to cash a check made out to my business. Dont know if this is bank specific or just that they (banks) dont do it in general.

You don't cash any biz checks, you deposit them. Then if you need money you write yourself a check or go to a atm.

It is this simple. If you run a biz dba, sole prop, inc, etc you should have a biz account. This can cost money it is part of the cost of doing biz or overhead. If your running you biz above the table you should have one and not complain of the cost. Go shop the banks if your worried about the $10 fee you might get sometime. I picked the one that I drive by daily to save on time/gas.
Posted via Mobile Device

DSF1983
04-21-2011, 12:19 AM
Kelly thanks for telling your experience. I thought that if I open a business account at people's I would have a better chance of getting a business loan down the road or money for a house. I will see if my credit union bank will also let me open up a business account even though I have a normal checking account. The bank I love is Sikorsky credit union bank.

meets1
04-21-2011, 12:21 AM
i also think you need bank one for personal - get a second bank for business.

Everyone knows everything about anything. No need to let your bank know anymore of your business than it already does.

I am in a small community but I use 2 banks - that way i can also work them in giving some work from time to time.

DQL10
04-21-2011, 12:23 AM
You don't cash any biz checks, you deposit them. Then if you need money you write yourself a check or go to a atm.

It is this simple. If you run a biz dba, sole prop, inc, etc you should have a biz account. This can cost money it is part of the cost of doing biz or overhead. If your running you biz above the table you should have one and not complain of the cost. Go shop the banks if your worried about the $10 fee you might get sometime. I picked the one that I drive by daily to save on time/gas.
Posted via Mobile Device

That is what I've always done but just for wanting to know myself one time I asked them and they said they couldnt do it.

grincon
04-21-2011, 12:29 AM
Maybe switch to billing monthly also. Most banks these days charge about 10 - 15 bucks for a business account.

WheatBookkeeping
04-22-2011, 06:03 PM
I have to assume we are talking only straight checking, at this time, and not including electronic transactions and credit card payments, which is another subject.

The only real benefit to you, the business owner, is that a “business" checking account provides a point of control for money transactions associated with your business. The account is a single way in and a single way out of your business cash asset. It provides separation from personal money that assures only money transactions that pertain to your business are recorded there and that makes it possible to prove the accuracy of your internal business bookkeeping records.

So, in the real world, the benefit to having a checking account is only in the way it is used when compared to other accounts you may have.

Banks market their “Business Checking” accounts as some special magic that will do something great for your business for the fees they charge. That's bunk, it's a demand account just like any other demand account.

Merchant accounts are different, they do have a lot of bells and whistles used by retailers, but your lawn care and landscaping business has no need for all that stuff.

Your business requires only a no frills checking account in your DBA name, with a debit card, a credit card, unlimited check writing, and unlimited check depositing.

Shop the banks and choose the most convenient and cheapest. Your credit union is likely to be the cheapest and still have the features you need

DSF1983
04-22-2011, 07:55 PM
i have to assume we are talking only straight checking, at this time, and not including electronic transactions and credit card payments, which is another subject.

The only real benefit to you, the business owner, is that a “business" checking account provides a point of control for money transactions associated with your business. The account is a single way in and a single way out of your business cash asset. It provides separation from personal money that assures only money transactions that pertain to your business are recorded there and that makes it possible to prove the accuracy of your internal business bookkeeping records.

So, in the real world, the benefit to having a checking account is only in the way it is used when compared to other accounts you may have.

banks market their “business checking” accounts as some special magic that will do something great for your business for the fees they charge. That's bunk, it's a demand account just like any other demand account.

merchant accounts are different, they do have a lot of bells and whistles used by retailers, but your lawn care and landscaping business has no need for all that stuff.

your business requires only a no frills checking account in your dba name, with a debit card, a credit card, unlimited check writing, and unlimited check depositing.

shop the banks and choose the most convenient and cheapest. Your credit union is likely to be the cheapest and still have the features you need

thank you!

205mx
10-20-2011, 12:59 AM
D jag. You really are mis informed. You can have "personal accounts" that are not what you call 'biz' accounts, and you CAN cash checksum your business's name. All you have to do is open a personal checking account for yourself. You fil for a DBA (doing business as). So for instance; John Smith DBA JS Lawn Care. You can then deposit checks made to either name.
Posted via Mobile Device

jada86
10-20-2011, 07:00 AM
Separate the accounts for tax purposes. It will make life SO much easier when you have to file your taxes. The IRS doesn't take kindly to mixing personal and business funds. Plus, at some point, you'll want to analyze profit & loss and budget for future. It will be a real nightmare to separate expenses then to do it!

Darryl G
10-20-2011, 09:09 AM
I get paid in beer so my bank account is the fridge in my garage.

wbw
10-20-2011, 01:34 PM
I get paid in beer so my bank account is the fridge in my garage.

Smart guy, he eliminates the middle man.

Darryl G
10-20-2011, 01:38 PM
Smart guy, he eliminates the middle man.

Yeah, the only problem is I don't have overdraft protection :(

MowingMowingMowing
10-20-2011, 09:03 PM
You need to have 2 different accounts. If you only use 1 account and you happen to get audited, the IRS can, and probably will, count any and all deposits in your account as business income regardless if it is or not.

If I recall correctly, by not separating the two, you are "piercing the corporate veil." I don't feel like explaining it all, but if you Google it you should be able to find some more info.