Legal Question in Business Law in New York

Re: Future problem?

Keep in mind that you have to deposit collections in an account and it should be a corporate business account.

Check with several banks and find out what the charges are, if any. You may discover that the charges for a bank account may be a reasonable cost of doing business.

Re: Future problem?

No. Once you incorporate, all income for the corporation should be deposited in the corporate account.

Should you like to discuss this or any other legal matter, you can call my office to schedule an appointment for a consultation or in the alternative, I can be reached for on-phone low-cost legal consultation at 1-800-275-5336 x0233699.

Re: Future problem?

Technically, all corporate income and expenses should be segregated from your personal banking matters, which is why it is suggested that a separate account be maintained. As long as you can account for the income, it should not matter if on a temporary basis a non-corporate account is used. Your only difficulty will be that payments will be made to the corporate name and checks will have to be endorsed to deposit them to the account. This could be done temporarily if your bank will allow it. I also suggest contacting several banks, explain the situation, and research fees. You may be able to get a bank that will waive the charges for a time until you can meet the minimum balance maintenance amount. The fees are deductible, but can mount up while you are starting out. Small, local banks may be more flexibile in setting the opening fees. Perhaps they will link the business account to other accounts you have at the same bank, and consider, for fee purposes, the combined balances.