Earn interest on checking accounts. As of July 21, 2011, a federal prohibition against the payment of interest on business checking accounts was repealed. As a result, corporations and partnerships can now have interest-bearing checking accounts that are insured for up to a total of $250,000 combined with any other interest-bearing deposits the business may have at the same bank, including certificates of deposit (CDs), savings accounts and money market deposit accounts. Also remember that the deposits of a sole proprietorship — an unincorporated business owned by one individual using a business name — continue to be insured together with any personal funds the owner may have at the same bank, up to $250,000 in total.
Save for retirement. There are a variety of options for the personal funds of a small business owner — from IRAs and SEPs to 401(k)s — that can be used to save for retirement and save on taxes. The Fall 2011 FDIC Consumer News featured an article on the different ways a small business owner can save for retirement (online at www.fdic.gov/consumers/consumer/news/cnfall11/retirementaccounts.html).