This, from Rhonda Abrams newsletter, was an eye-opener for me. It is too important for me to paraphrase, so I’m copying it intact:
Are Your Business Bank Accounts Safe?
With the collapse of a major bank, Americans are—rightfully—concerned. FDIC insurance protects up to $100,000 per individual, but what about your business deposits?
FDIC insurance DOES cover business accounts—up to $100,000 total for ALL business accounts combined.
Sole proprietorships are not separate entities from the individual—your total protection is $100,000 for business and personal accounts combined.
Legal corporations and legal partnerships are treated as separate entities with insurance on accounts up to $100,000 in addition to $100,000 for personal accounts.
No matter how many partners are in a legal partnership, the total FDIC insurance is $100,000 for that partnership’s accounts (in addition to the individual partners’ own accounts, if any). If you have more than $100,000 in all accounts combined, (personal and business if a sole proprietorship), you may want to switch some funds to another FDIC-insured bank. For more info click here …