So my LLC has about $40k sitting in the business checking account. It's been there for a few months now, and every time I look at it I feel this weird pressure to 'do something' with it. Buy equipment, hire someone, expand. But honestly? I don't have a clear plan yet. Is it stupid to just... leave it there? I know it's not earning much interest. But I also don't want to blow it on something dumb just because I feel like I should be deploying capital.
Cash Management
My LLC has money in the bank, but I don't want to spend it yet
Not stupid at all. Cash is a position. If you don't have a high-conviction use for for it, sitting tight is often the smartest move. The pressure to 'deploy' is mostly coming from people selling something.
Eh, I sort of disagree. 40k in a checking account is losing value to inflation. At least move it to a high-yield savings or a money market. You don't have to spend it, but you can park it somewhere it's not rotting.
Fair point. I meant more like don't force a business decision. Parking it better is a different conversation.
People always say 'cash is a position' like it's profound. It's just... not spending money. Which is what everyone does when they don't know what to buy. You're fine, OP. Ignore the noise.
Yeah, the HYSA thing is something I should probably do at minimum. I already have a personal one, just didn't think to open a business one. @DishSoapDealer any recs or is it all the same?
Mostly the same. Just check minimums, and whether they have a business account option. Some online banks make it easy, some want you to jump through hoops. Don't overthink it. The differecne between 0.1% and 4% matters, but the difference between 4% and 4.3% is not worth three hours of your life.
I had almost the same situation last year. Left it in checking for like 8 months because I was scared to make the wrong move. Finally just moved it to a savings account and felt stupid for waiting. It's not a strategy, it's just fewer regrets.
Also worth noting: having a cash buffer means you can say no to bad deals. That's worth something. I'd kill for a boring 40k cushion right now lol.