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Business Checking

Your business will require a bank account, both to receive and to disburse funds. If you decide to accept credit cards, most clearing companies will require you to have a business checking account for them to place transaction deposits and to charge transaction and related fees. A business checking account thus is probably your most practical alternative.

Business checking accounts generally are offered on far less advantageous terms than individual accounts. Banks are concerned about incurring high costs of processing large numbers of withdrawals and deposits. In your business plan, you should try to forecast the amount of checks you will receive for deposit or have to write. You should shop around among banks for the best deal relative to the volume of activity that you anticipate.

Also, consult with your legal and tax advisers on how the account should be titled, and who should have the authority to sign checks. You may want to keep this authority strictly to yourself, or you may want the option to

delegate it to one or more trusted employees. Confer with both your advisers and the bank on measures you need to take to prevent fraud and to recover sums that were improperly disbursed.

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