How necessary is a bank account for self-funded searchers?

by a searcher

1 month ago

Hi searchers, 

I officially started my self-funded search recently, and I've got a few minor expenses (things like business cards, website, etc.). I anticipate that my currently self-funded search will require an SBA loan, investor equity, my own equity injection, and a seller note to finance. 

I'm planning to fund my search through my personal funds, but I recently realized that I may need to open a bank account - but as long as I'm tracking my relatively few expenses manually I'm not sure if it's an outright necessity. Do we think it's wise (or even necessary) to open a bank account for my LLC? 

Thanks!

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searcher from The University of Texas at Austin - Red McCombs School of Business

I don't think opening a business bank account or even setting up an LLC is necessary in the search phase (unless you want to search through an entity). Once you have an LOI, then it is time to set up the entity based on the type of business you are acquiring, and then opening up a business bank account. Of course if you want to, you can set up an entity and open a bank account as early as you want; but to me, it is additional hassle for a few expenses that can be easily tracked.

2 weeks ago | like reply | 0 likes

searcher from University of Florida - Warrington College of Business Administration

I agree, it makes sense to open a separate bank account for tracking and record keeping purposes.

1 month ago | like reply | 0 likes

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