| When you're running a business, your banking needs are likely to be different from your previous personal needs. While you can make do by running your eBay payments through your personal savings and checking accounts, it's much cleaner to establish a separate banking identity for your business. Merchant Checking Account The best business practice is to set up a merchant or business checking account separate from your personal accounts. While you're not required to do this, if nothing else it will make your record keeping easier. Having a bank account in your business name should also minimize any potential confusion when it comes to depositing or cashing checks made out to your business name or dba. tip  | Rather than setting up a specific merchant account, it may be easier (and cheaper) to set up a second personal account ” especially if you're a sole proprietorship. |
To set up a merchant account, you'll need that fictitious name affidavit we talked about earlier. If you're running a partnership, the partnership's bank account should be separate from all the partners , and should require more than one name on the checks. (That's to protect against any one partner running off with all the funds. ) Dealing with Credit Cards While you're at the bank, you should ask about what's involved in establishing a merchant credit card account. You'll need to accept credit card payment for your eBay auctions, and if you can easily and affordably set up a merchant account with your bank, all the better. Know, however, that most banks make it difficult for small businesses to do this; you're probably better off going with PayPal for your credit card payments. | 