Tuesday, March 20, 2012

Money in the Bank

DOUBLE double yolkers!

I opened a small business checking account for the farm today!

That's right - money in the bank.  I transferred $3,000 into the account for farm start-up expenses (seeds, feed, tools, etc), and with my sales tax ID, I'll also be able to accept and deposit money (that is, once I actually have a farm and begin selling CSA shares and other farm products).  We're in business.

(Setting up a bank account was simple, but took quite a bit of research.  I thought that I wanted to open an account at a local credit union, but it turns out the banks around here have monthly maintenance fees between $10-40 a month, in addition to requiring a minimum balance of $5,000-$10,000.  In the end I decided that it wasn't worth it for the small amount of business I'm planning on doing this season.  I set up the account with Peoples United Bank - which has two nearby locations and offers free banking for small businesses.)

To set up a business banking account, I also needed to obtain a trade certificate from the town clerk.  I decided to get this from the town I currently live in (rather than the town I'm buying the farm in) because it's less expensive and because for now, this is where the business is.  It was much more simple than I thought and now our farm name - Full Heart Farm - is registered with the town and can't be used for another business.

The business end of things is pretty well set (I just need help drafting a biosecurity plan in order to obtain a poultry dealer's license - in case of avian influenza).  Another round of images came back from our graphic designer and we're close to having a logo, with a website to follow.  My growing plans are shaping up.  I feel like we're getting there.

The only thing I need is the FARM!  I'm trying not to get too nervous about the radon levels or the water test - hopefully negotiations with the homeowners will be settled this week (and I'm even more hopeful that they'll cover the cost).  I'm also optimistic that my budget paperwork from the loan office will be completed soon and the appraisal scheduled shortly.  So many pieces of the puzzle still need to come together...

1 comment:

  1. A business bank account can also give your business credibility and, in some cases, it can open up access to finance, support and advice, specially if you practice relationship banking.