Cheque

ThatGuy

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Apr 4, 2012, 5:05:10 PM4/4/12

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I am in the process up starting small side business. My question is,
if clients write cheque payments out to 'my small business' will my
bank require me to have a separate business banked account or can I
incorporate this into my personal banking?

Carter

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Apr 4, 2012, 5:55:28 PM4/4/12

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I think you would be well advised to pose the question to your bank.

Carter

Fred

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Apr 4, 2012, 7:42:09 PM4/4/12

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...and CRA.

:-)

Brad P

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Apr 5, 2012, 7:49:50 AM4/5/12

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I would think if a client writes a cheque out to your company called ABC,
your bank does not know you own ABC because ABC is not associated with your
personal account. The cheque would have to be in your name to deposit into
your bank account.

Perhaps if the client wrote: ABC, c/o John Doe, maybe that could get
deposited into your personal account.

"ThatGuy" <flipp...@gmail.com> wrote in message
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UserX

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Apr 5, 2012, 8:46:28 AM4/5/12

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You're far better off getting a business account. The fees aren't that
high (I pay RBC around $6 a month for my small biz account) and they're
fully deductable as a business expense. It helps keep things separate
from personal money/expenses, making tax time easier, and certainly will
be a lot easier to deal with if you're ever audited by CRA.

cloud dreamer

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Apr 5, 2012, 4:12:13 PM4/5/12

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I asked a small business owner and they said to definitely set it up if
you'll be making a fair number of transactions. It's far easier to keep
your books straight if the payments are separate, especially if you have
someone giving you a cheque in the name of your business.

That's if the business is big enough that you're keeping separate books.
If it's small and only a few cheque payments, see about having them pay
you in cash or making the cheque out to you or to "cash."

One other thing is that when you open a business account at the bank,
they'll ram you with fees that are higher than your personal account.

So, it's a matter of weighing the two sides of the coin. It's hard to
say really without knowing the type or scope of the business. For some,
baking cookies in their kitchen is a side business while for others,
under-coating cars in their garage or doing people's taxes are a
side-business and the latter two definitely involve a lot more in terms
of dealing with the income.

If you're doing more than baking cookies, the advice of an accountant
would probably be the best bet.

..

--
We must change the way we live
Or the climate will do it for us

B R

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Apr 6, 2012, 10:38:13 PM4/6/12

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To ThatGuy:

I have a small business. If you are incorporating your business send
me an email at brey...@lightpost.ca and I'll give you some advice on
banking and fees. I'm happy with my bank and the fees they charge.

Ed

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Apr 7, 2012, 8:10:36 PM4/7/12

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YOU CANNOT USED A PERSONAL ACC FOR BUSINESS PURPOSES. IT WILL BE SHUT DOWN!
end of story
"B R" <brey...@lightpost.ca> wrote in message
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Art

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Jun 4, 2012, 8:38:45 PM6/4/12

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I can answer with 100 percent certainty, you will need a business account.

If you have cheques made payable to yourself (assuming you are sole prop
bus), then you can use your personal account, however, you bank will soon
catch on that you are using your personal acc for business purposes and it
will be shut down.

"ThatGuy" <flipp...@gmail.com> wrote in message
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