Business checking account

[peteyflow]

Quick question. I will be setting up a small shop at a market place, it's like a swapmeet but an upgraded version since every vendor charges tax and not a single vendor sells used equipment or items.

But, do you think I need to open a seperate business checking account for this business? I know it's not mandatory and I know it's easier to make the accounting life easier if I do have a business checking account, but at the same time, I'm just afraid of the fees that I will have to face when I open a business account.

If you were in a similar situation like me, what bank do you recommend and what are the pros and cons of opening a business account?

[BizGuy]

Peter,

With regards to setting up a business checking account for this business may depend on how you structure your ventures. If this is a new entity that you have created for selling these items separate from what you have currently set up, then it may be advisable to set up a new account. If this vendor business is under the same company name as what you are currently using for your other business then it may make sense to keep the one account but keep organized records. My suggestion would be to talk with your book keeper or the person who handles your accounting and ask them their thoughts and ideas on setting this up correctly the first time around. You may be concerned about the banking fees for a new account set up but I'm quite confident that a messed up accounting system would end up costing you more from you accountant in the long run. As far as banking goes, we have used Bank of America and Wells Fargo. I know that Chase is aggressively marketing to new business startups and have recently opened many new locations in our area. If you end up setting up a new account it may be worth your while to go into a few banks to compare the options as many of them have 'special incentive' offers for new account set ups which sometime even include waiving those pesky little start up fees!

How about other YE members? Who are you currently banking with and why?

Best of luck and keep us informed.

-Adam