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I will be starting my daycare in the fall and have families lined up. I went ahead and registered my business name so that I can provide the families with my BIN instead of my SIN. I am now wondering whether I should have cheques made out to my personal name or my business name and if they should be to my business name, I am guessing I would need to open a bank account under that name.? Any advice would be greatly appreciated!
Yes you do, and frankly they are not wortth it for a business this size. My business is registered also.
I rarely use a cheque for anything in the business. It is usually my credit card or cash and it is a personal card not business.
Oh to clarify I mean when the parents pay me by cheque - not me actually using cheques.
Thanks for your response dodge-driver11.
no prob ..Just to clarify as well if you go to the bank with your bus. name on a cheq. they will tell you it needs to be re written, or that you need to open a business account.
I don't accept cheques .... My families pay by cash or EMT (email money transfer)
For cheques, they used my full name, not my business name as I'm not registered for the daycare. For my dance school as I am registered, I still ask parents to use my full name as my bank account is NOT for business!
Parents need to make the cheque out to you as yes you will not be able to cash it at the bank because the account is in your name not the name of the business. I run into that with my felt sometimes as a customer wants to put Story Time Felt on it but I have to try and explain that is the company not me so it is like writing Tupperware on a cheque and expecting your consultant to cash it.
Opening a business account will allow the parents to then put the daycare name on their cheque but to open a business account also costs you more per month in services and comes with services you will never use. Really not worth the expense or hassles.
On your contracts make sure that it says this is an agreement between parentsXXXX and provider or caregiver PPPPP as in your name and not the name of the daycare. It is a personal contract. Everything you have is goign to be personal such as your house insurance which will include the daycare. If you are going to use the business name you will also need insurance in the business name and that is where municipal zoning for businesses and such comes into play.
Thanks Ladies!
Playfelt - is your business name registered? Dodge Driver - so do you have a business account then?
My business name is registered so that I have a BIN number for tax purposes however I use a personal bank account and have cheques made out to my own name as a result so they can be deposited and cashed and in the memo part I have the parents write 'for daycare between X and Y' for their records as well
I have never had an issue with my personal bank questioning the amount of cheques I deposit and if they do not REQUIRE you to have a business account I would not 'volunteer' for one ;)
IMO it is CHEAPER to keep your personal account or open up a seperate 'personal account' that you use only for business if need be .... because when you open a business account they ASSUME you will be making huge transfers of money as a 'business' regardless that you are just a teeny tiny home childcare operator and they set their service charges and so forth accordingly - I prefer to do 'no fee banking' and honestly my clients pay bi-weekly ... the 10 deposits I make a month would hardly be worth the 'business account' and as i said my bank has never questioned that I am using a personal account for 'business' so I am happy to just keep doing so ;)