Open a Checking Account

The first account you will need is a checking account. The following are some pointers that should help you to make needed decisions:

Your DBA is required. If your business name is an assumed one, you cannot open a checking account under that name without first having filed a DBA as discussed in the previous chapter. The DBA is a means for giving the bank authority to deposit and cash checks under your fictitious name. It should be noted here, that banking policies at most financial institutions preclude offering interest-bearing checking accounts unless your name is part of the company name. If you have filed a DBA, be sure to take your receipt with you when you open your checking account. The bank will require a copy for their records.

Select a checkbook style. When you open your checking account, you will be asked what style of checks you wish to order. You will have to decide between the book type and the wallet type. The smaller one is easier to carry, but the book type is the better choice. It will allow you to record more information about your checking transactions – information that can be invaluable during accounting procedures. There is a personal desk type checkbook that is smaller that the business size and still very adequate. You will have to ask about this particular style as it is not included under business checkbook selections.

How many checks should you order? Be sure to think ahead as to your needs before deciding on the number of checks to order. Reordering of checks can be costly. Start with a minimum order. In most cases there will be some change that needs to be made before long. You may get a new telephone number or decide to add or subtract a name.

At the same time you order, you may request that your checks be numbered beginning at a number other than 101. Frequently, this request will be denied on new accounts. However, if you are successful, the use of higher-numbered checks may keep the recipients of your checks from being tipped off that you are a new business. If all else fails, you can discard the first book or two books of checks and start your business with a higher check number.