Corporate bank account?

Question

i went down to open a corporate bank account in 6/07. i just called the bank today and they said they made a mistake and opened a regular business acct. instead of a corporate acct. if i paid business expenses and taxes from this account thinking it was a corporate acct. what will happen? will i get in trouble? what do i need to do. i know to open one right away. but do i have to contact anyone?

Answer 1

There is no difference between a corporate bank account and a regular business account.

The implied difference that you are concerned about, is the risk of mixing personal and corporate funds. With a corporate account, you need to sign contacts as " Mrs John Doe, Treasurer, XYZ corporation". (or whatever your title).

If just signing a check, that is not really a big thing.

If signing a loan contract, you could be personally liable for the loan, instead of the corporation.

Just to be on the safe side, The Board of Directors should hold a meeting and resolve that this account is a a corporate account, and that all transactions on this account done by you or any other officer of the corporation are acts of the corporation and approved as acts of the corporation.