Starting a corporation and wondering if i have to have a different bank account for each company in the corp.?

Answer 1

Good rule of thumb ... if the companies have separate taxpayer ID's then they should have separate bank accounts.

This allows you to demonstrate 'arms length' transactions between them and simplifies things if you sell one of them later. It also provides a degree of insulation if there are legal difficulties or liability issues (ie one of them gets sued) in the future.

You will also want to segregate bank accounts where you have operational or internal control segregrations (like who can make deposits or write checks). But remember, each account is going to cost you money to maintain and you will need to manage more complex cash flows and create intercompany settlements as you move money between them.

Answer 2

U.S. states require legal documention to be filed and recorded with that state when incorporating. Depending upon the type of business transactions your corporation will be involved in, legal documentation may also be required from Federal agencies; i.e., the IRS. There are attorneys who specialize in Corporation Law. I would recommend you retain an attorney to assist you with your "Incorporation".

Answer 3

Yes, each company will need their own account.

Answer 4

Yes.