What is the best practice when opening up a business bank account for a business that I anticipate to be worth more than $250,000. Does the FDIC insure amounts more than this for business accounts? Or should I open multiple bank accounts? When you look at companies like Google, Airbnb, Facebook, and Paypal, how are they handling these types of things?
Yes a [business has $250,000 of FDIC coverage][FDIC]. But make sure that the corporation is recognized as being a separate entity from the owner, or it can be mixed in with the personal accounts, and not have as much coverage as you expect.
A corporation, partnership, or unincorporated association must be separately organized under state law and operate primarily for some purpose other than to increase deposit insurance coverage.
All deposits owned by a corporation, partnership, or unincorporated association at the same bank are added together and insured up to $250,000, separately from the personal accounts of the owners or members.
So if you must have more than $250K in the bank, you can have accounts in multiple banks.
For a company to be worth $250,000 that doesn't mean that they have $250,000 in the bank.
The worth of the company includes the equipment and other property they have. A pizza place has a significant amount of money tied up in equipment and inventory. A small delivery company has vans and a warehouse. A web development company has invested in computers, servers, licenses and the like.
The worth of a small business can also be related to their location, customer base, and existing contracts. Somebody purchasing that business takes those things into account.
When a company has to have money in the bank to prepare for an expansion of that business: for example opening a second location, or adding additional staff; they can invest in US treasury securities. These pay better than a regular bank account, and are extremely safe.