All expenditures and receipts must flow through the business checking account. For example, if you need to make a business purchase but find that your checking account is low, you may have to loan the business funds. The correct way to handle this transaction is to personally write a check to the business, deposit it into the business account, and then disburse the funds from the business account. The same principle applies to owner withdrawals from the business. All disbursements to you should be in the form of a check drawn on the business account. Many small business owners fall into the trap of not keeping personal and business funds separate. Don’t be one of them.
When opening a business checking account, your bank will require a Certificate of Organization which is issued by the Virginia State Corporation Commission. In addition, they will require your federal identification number and in some cases will want to see your business license. Other documents that you will need when opening a checking account will require you to list the officers of the company and identify the authorized signatures for the account. In addition a Corporate Resolution is required for all company accounts. The bank will have all necessary forms for you to prepare and will help you complete them. Of course, they will require personal identification.
There are typically fees related to maintaining your business checking account as well as fees related to the cost of the checks. Fees may vary depending on the amount of money you keep in your business checking account.