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Started By
Message
Partnership bank account
Posted on 7/30/15 at 9:30 am
Posted on 7/30/15 at 9:30 am
A friend and I are going to do a few small projects together to makes some extra cash on the side. I think it's a good idea to open a separate bank account for this purpose.
Any tips? Do we need a business account or will they allow a personal account? Do we need a legal business name?
We plan on investing a set amount of cash in the beginning and just letting it grow from there and not withdrawing any cash for personal use until we reach a more significant amount of cash.
Any tips? Do we need a business account or will they allow a personal account? Do we need a legal business name?
We plan on investing a set amount of cash in the beginning and just letting it grow from there and not withdrawing any cash for personal use until we reach a more significant amount of cash.
3
Posted on 7/30/15 at 9:33 am to gamemc
I don't believe you cannot open up a business bank account without a tax ID number.
Posted on 7/30/15 at 12:00 pm to gamemc
There are so many horror stories, busted friendships, and legal cases that begin with
Form an LLC, register with the state (you can get the documents off the sec of state website, fill them in) draft an operating agreement (pay a few bucks for a template), get an EIN.
Go to bank with all of this and open a business account.
This is what I would do.
If you refuse to do this, then I will say that some banks will allow you to use one of your SSNs with a d/b/a. However, I would beg of you to not do this.
quote:
A friend and I are going to do a few small projects together to makes some extra cash on the side
Form an LLC, register with the state (you can get the documents off the sec of state website, fill them in) draft an operating agreement (pay a few bucks for a template), get an EIN.
Go to bank with all of this and open a business account.
This is what I would do.
If you refuse to do this, then I will say that some banks will allow you to use one of your SSNs with a d/b/a. However, I would beg of you to not do this.
Posted on 7/30/15 at 1:47 pm to LSUFanHouston
Yeah I hear you on the horror stories. That's why I want to be sure we're doing things the right way from the start.
I hate that it's going to require so much effort just to test the waters on this business idea but I think you're right. And hell if it doesn't work out at least this whole process will be experience gained.
Thanks for the advice!
I hate that it's going to require so much effort just to test the waters on this business idea but I think you're right. And hell if it doesn't work out at least this whole process will be experience gained.
Thanks for the advice!
Posted on 7/30/15 at 2:21 pm to gamemc
here's a simple checklist:
llc paperwork
tax id number
bank account
someone who is in control of the money ( cpa / controller ) so you know exactly how much money you have at all times and how long you can live on that money
if there is any chance of this turning into a larger gig, discuss equity split now and get it out of the way. one of you will be doing more work than the other for sure and you don't want to build up resentment with your buddy.
have buddy time and business time and don't mix them unless you guys have been through some shite before and can handle stress as a team.
good luck :D
llc paperwork
tax id number
bank account
someone who is in control of the money ( cpa / controller ) so you know exactly how much money you have at all times and how long you can live on that money
if there is any chance of this turning into a larger gig, discuss equity split now and get it out of the way. one of you will be doing more work than the other for sure and you don't want to build up resentment with your buddy.
have buddy time and business time and don't mix them unless you guys have been through some shite before and can handle stress as a team.
good luck :D
Posted on 7/30/15 at 2:43 pm to gamemc
quote:
I hate that it's going to require so much effor
You should be able to knock out all the business formation documents with two hours of time spent in front of a computer one evening while drinking a cold one.
If what you are doing requires some sort of specialized license, may take time to deal with that.
With all the paperwork done you and your buddy can get the bank account set up over lunch and 55 min of that hour will the banker trying to sell you stuff.
The one piece of advice I can offer to any new business idea - no matter how big or small... is to take the time in the beginning to get things right and to get things legit. It will pay off in the long run.
Posted on 7/30/15 at 4:13 pm to gamemc
Going into business with another person and not having an attorney guide you through the process sounds like a terrible idea. Not having specifics in a valid legally supportable document sounds like a terrible idea. If you don't know what should be addressed in those documents, doing it on your own sounds like a terrible idea.
Going into business with another person is a lot like a marriage. Just remember that the honeymoon doesn't last forever and the divorce rate is pretty high.
*Not legal advice, etc.
Going into business with another person is a lot like a marriage. Just remember that the honeymoon doesn't last forever and the divorce rate is pretty high.
*Not legal advice, etc.
This post was edited on 7/30/15 at 4:13 pm
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