How to get a bank account?

How should I get money in my startup's bank account? Should I?

• I would like to get a bit of money (few hundred bucks) into my corporate bank account from my personal account, for operating expenses and perks (dinners with potential clients, hardware and hosting costs, etc): a) Is there any benefit to doing this via the corporate bank account, instead of just paying out of my own bank account/credit card and keeping the receipts around for later to transfer money? b) If there is a benefit, what's the best way to transfer money from personal to corporate account? I heard about something called a promissory note that will do the job - is that the best way?

• Answer:

  You should probably consult a lawyer, but in my unprofessional opinion, I've learned a few things about this over the years from funding my own whacky ideas. There are two big benefits to paying out of a corporate bank account. First, it just makes accounting much easier. You can implement a super simple cash accounting if everything is coming and going from a single bank account. It'll save you lots of time. Second, if you pay from your personal accounts, even if you are incorporated or have a registered LLC, and you get sued, a court may decide that you do not, in fact, operate a real business. Paying from a personal account, even if you account for business expenses after the fact, can expose your assets. You can give your business a loan or promissory note, but it's often not necessary (in my opinion!), especially if you're the only shareholder of the company. You can simply transfer the cash into your business account and account for it as owner funding. It's a liability that your business owes back to the owner (you). Since there's no repayment period or interest, there's not much need for terms that a note would carry.