Business Entities and Banking at DVinfo.net

Bill Vincent · November 30th, 2009, 06:30 PM

I am in a situation right now where I have two businesses - one is a business-oriented video production company, and the other is a wedding videography company. Up until now I've just had clients make checks out to me personally, but the time has come for me to get a checking acct. for the businesses. Is it possible to get one checking account for both businesses, or will I have to get separate accounts for each, even tho they are both basically 'Me"? Thanks in advance for your suggestions...

Don Bloom · November 30th, 2009, 07:19 PM

Depends Bill. How are your businesses setup? Are you a Sole Prop, an S corp or... Do you run both businesses under the same name?

Years ago I also had 2 different companies, 1 for weddings and 1 for corporate work. 2 different corps and 2 different names. It became a real PITA for me so now it's all one, one name, 1 bank account 2 different service agreements. A lot easier for me and my accountant.
How the businesses are setup will make a difference.

Shaun Roemich · November 30th, 2009, 07:59 PM

+1 for Don's advice. Sole proprietorship is the EASIEST way to set up your company and therefore your banking. Your accountant (if you don't have one, GET ONE!) should be able to tell you if there is any benefit to forming one or more limited liability corporations (in my specific case, my accountant advised against it - your mileage may and will vary).

My banking is set up as Shaun Roemich DBA (doing business as) Gearhead Visual Productions.

Tim Polster · November 30th, 2009, 10:51 PM

Bill,

My take is with Don. You can have a bank account for pretty much anything or anyone. What really matters is the state and taxes.

Are you registered with your state as a business entity or two?

I went with the LLC - limted liability Company

Called the state offices and registered directly for $200. Its official and sort of puts you on the map as existing.

Chris Davis · December 1st, 2009, 07:41 AM

Any advice given is going to be specific to the state and locale of the poster. There is no single set of rules that covers the whole country in this regard. For example, in my state and city, there is no requirement that I register, obtain a license, or in any way inform the state or city that I am conducting business. However, living in Nashville you will no doubt have a different set of rules to follow.

Your best course of action would be to contact the Tennessee Small Business Development Center (www.tsbdc.org). They provide free services, guidance and resources to ensure you set off on the right foot.

BTW, don't necessarily look to your bank for business advice. They are selling a product. They'll give you 10 checking accounts (with loans to match) if that's what you want.

Paul Mailath · December 1st, 2009, 03:55 PM

I don't see why you can't run one account but what name is going to be one that account and how will suppliers & customers deal with that? - what will their perception be?

Running 1 account can become complicated from an accounting point of view unless you keep acurate records - something like MYOB or Quickbooks means you can seperate your real account into 2 virtual accounts (on 2nd thought that would be a pain to balence)

If you use job numbers or a category facility you should be able to separate out income & expenses for each.

Bill Vincent · December 1st, 2009, 04:15 PM

Wow, thanks to all for the great replies! I do have an accountant, and am trying to get a hold of her (her voicemail box is full, which isn't a good sign... ugh!)

The TSBDC looks like a good source for info as well. I am sole proprietor for both businesses right now - and one is already set up as a business with the county, and the other will be, pending the info I get from my accountant.

Thanks again for all the great suggestions....

Bill

November 30th, 2009, 06:30 PM	#1
Bill Vincent Major Player Join Date: Aug 2009 Location: Nashville, TN Posts: 253	Business Entities and Banking I am in a situation right now where I have two businesses - one is a business-oriented video production company, and the other is a wedding videography company. Up until now I've just had clients make checks out to me personally, but the time has come for me to get a checking acct. for the businesses. Is it possible to get one checking account for both businesses, or will I have to get separate accounts for each, even tho they are both basically 'Me"? Thanks in advance for your suggestions...

November 30th, 2009, 07:19 PM	#2
Don Bloom Inner Circle Join Date: Jan 2003 Location: Chicago, IL Posts: 6,609	Depends Bill. How are your businesses setup? Are you a Sole Prop, an S corp or... Do you run both businesses under the same name? Years ago I also had 2 different companies, 1 for weddings and 1 for corporate work. 2 different corps and 2 different names. It became a real PITA for me so now it's all one, one name, 1 bank account 2 different service agreements. A lot easier for me and my accountant. How the businesses are setup will make a difference. __________________ What do I know? I'm just a video-O-grafer. Don

November 30th, 2009, 07:59 PM	#3
Shaun Roemich Inner Circle Join Date: Sep 2002 Location: Vancouver, British Columbia (formerly Winnipeg, Manitoba) Canada Posts: 4,088	+1 for Don's advice. Sole proprietorship is the EASIEST way to set up your company and therefore your banking. Your accountant (if you don't have one, GET ONE!) should be able to tell you if there is any benefit to forming one or more limited liability corporations (in my specific case, my accountant advised against it - your mileage may and will vary). My banking is set up as Shaun Roemich DBA (doing business as) Gearhead Visual Productions. __________________ Shaun C. Roemich Road Dog Media - Vancouver, BC - Videographer - Webcaster www.roaddogmedia.ca Blog: http://roaddogmedia.wordpress.com/

December 1st, 2009, 03:55 PM	#6
Paul Mailath Trustee Join Date: Dec 2006 Location: Central Coast - NSW, Australia Posts: 1,606	I don't see why you can't run one account but what name is going to be one that account and how will suppliers & customers deal with that? - what will their perception be? Running 1 account can become complicated from an accounting point of view unless you keep acurate records - something like MYOB or Quickbooks means you can seperate your real account into 2 virtual accounts (on 2nd thought that would be a pain to balence) If you use job numbers or a category facility you should be able to separate out income & expenses for each. __________________ Cheers - Paul M. www.perbenyik.com

November 30th, 2009, 10:51 PM	#4
Tim Polster Inner Circle Join Date: Dec 2004 Location: Arlington, TX Posts: 2,231	Bill, My take is with Don. You can have a bank account for pretty much anything or anyone. What really matters is the state and taxes. Are you registered with your state as a business entity or two? I went with the LLC - limted liability Company Called the state offices and registered directly for $200. Its official and sort of puts you on the map as existing.

December 1st, 2009, 07:41 AM	#5
Chris Davis Trustee Join Date: Jul 2005 Location: Willmar, MN Posts: 1,400	Any advice given is going to be specific to the state and locale of the poster. There is no single set of rules that covers the whole country in this regard. For example, in my state and city, there is no requirement that I register, obtain a license, or in any way inform the state or city that I am conducting business. However, living in Nashville you will no doubt have a different set of rules to follow. Your best course of action would be to contact the Tennessee Small Business Development Center (www.tsbdc.org). They provide free services, guidance and resources to ensure you set off on the right foot. BTW, don't necessarily look to your bank for business advice. They are selling a product. They'll give you 10 checking accounts (with loans to match) if that's what you want.

December 1st, 2009, 04:15 PM	#7
Bill Vincent Major Player Join Date: Aug 2009 Location: Nashville, TN Posts: 253	Wow, thanks to all for the great replies! I do have an accountant, and am trying to get a hold of her (her voicemail box is full, which isn't a good sign... ugh!) The TSBDC looks like a good source for info as well. I am sole proprietor for both businesses right now - and one is already set up as a business with the county, and the other will be, pending the info I get from my accountant. Thanks again for all the great suggestions.... Bill