4 ms·

hey, ive done this a few times. as a general rule, if you're at an early stage, it really doesn't matter, so go for something convenient. if you're pre-fun

hey, ive done this a few times. as a general rule, if you're at an early stage, it really doesn't matter, so go for something convenient. if you're pre-funding or even sub $1m, i'd honestly say go with whatever bank you're already using personally. Just make sure to take the proper corporate formalities and never co-mingle funds. The most important thing at this stage (and the next stages as well) is to not waste time on things that are irrelevant, so don't make banking more complex than it needs to be. as you grow, your CFO or maybe even COO might have their own processes and preferences, so just keep it as simple as possible till then. If you are really at the stage that you need a more robust system, brex and stripe are pitching themselves as tech startup friendly for credit card issuance and control, but truly any major bank will do. I've worked closely with Bank of America and Wells Fargo before and my local regional credit union with great success. I was not impressed with US Bank, Keybank, or Chase Bank. I've been really happy with my local credit union though. they have everything and I can speak to high enough ranking people to make sure things keep running smooth. And of course they love nice piles of cash sitting in the accounts.

abbadadda 8y ago
"Just make sure to take the proper corporate formalities and never co-mingle funds. The most important thing at this stage (and the next stages as well) is to not waste time on things that are irrelevant, so don't make banking more complex than it needs to be. as you grow, your CFO or maybe even COO might have their own processes and preferences, so just keep it as simple as possible till then." - Could you elaborate on this please? I'm currently bootstrapping this myself and pre-revenue. I have a Stripe account and I'd like to set up subscriptions to deposit into a dedicated checking account. But how do I cease co-mingling funds? I'm the only investor, paying for expenses with my credit card, that I'm paying off with my checking account and savings. I'm trying to learn as much as I can now to (A) avoid doing anything stupid, like co-mingling funds, and (B) do things "right" as quickly and as easily as possible. I should have definitely specified that I'm not funded (at all) and pre-revenue. Great advice all around. Much appreciated.
- wheelerwj 8y ago
  hey, not sure you if you will see this but just in case: first, i am not a lawyer, and this isn't legal advice, just stories from experience. Maintaining proper corporate formalities and handling finances is a big part of actually _operating_ a business. The main idea is that if you want to operate as a business, what you are actually doing is operating a separate legal entity to separate the legal and financial risk from you personally as the owner. This often includes setting up a proper corporate entity such as an LLC or inc, and maintaining the proper financial records, among other things. At later stages, this means working with your board and corporate counsel to maintain minutes and have regular board meetings too. As a founder, if you are pre-revenue but are starting to get customers/users who want to pay, its a good time to speak with an attorney to talk about getting some kind of liability protection setup (in today's environment, that also means ToS and Privacy Policies too). But if you are before that, it might still be early. The good news is that most lawyers do a quick consult for free, and its a GREAT time to start to develop your skills in working with counsel.

abbadadda 8y ago

"Just make sure to take the proper corporate formalities and never co-mingle funds. The most important thing at this stage (and the next stages as well) is to not waste time on things that are irrelevant, so don't make banking more complex than it needs to be. as you grow, your CFO or maybe even COO might have their own processes and preferences, so just keep it as simple as possible till then." - Could you elaborate on this please? I'm currently bootstrapping this myself and pre-revenue. I have a Stripe account and I'd like to set up subscriptions to deposit into a dedicated checking account. But how do I cease co-mingling funds? I'm the only investor, paying for expenses with my credit card, that I'm paying off with my checking account and savings. I'm trying to learn as much as I can now to (A) avoid doing anything stupid, like co-mingling funds, and (B) do things "right" as quickly and as easily as possible. I should have definitely specified that I'm not funded (at all) and pre-revenue. Great advice all around. Much appreciated.

wheelerwj 8y ago
hey, not sure you if you will see this but just in case: first, i am not a lawyer, and this isn't legal advice, just stories from experience. Maintaining proper corporate formalities and handling finances is a big part of actually _operating_ a business. The main idea is that if you want to operate as a business, what you are actually doing is operating a separate legal entity to separate the legal and financial risk from you personally as the owner. This often includes setting up a proper corporate entity such as an LLC or inc, and maintaining the proper financial records, among other things. At later stages, this means working with your board and corporate counsel to maintain minutes and have regular board meetings too. As a founder, if you are pre-revenue but are starting to get customers/users who want to pay, its a good time to speak with an attorney to talk about getting some kind of liability protection setup (in today's environment, that also means ToS and Privacy Policies too). But if you are before that, it might still be early. The good news is that most lawyers do a quick consult for free, and its a GREAT time to start to develop your skills in working with counsel.