If you are ready to start your business, you should consider opening a business bank account. Generally, business accounts include savings accounts, checking accounts, credit card accounts, and merchant services accounts. A business bank account can help you manage and protect the business. With it, you can separate the business funds from your personal funds.
Besides, if you open a business bank account, your customers can therefore pay the money to your business rather than to you, thus making the paying process more professional. You may also require your employees to tackle daily bank tasks on behalf of the business via the account.
In addition, the credit card accounts can allow you to make large start-up purchases and build a credit history for your business. You will need the credit to prepare for the emergency.
How to open the account?
- Select a bank
The first step for opening a business bank account is to find a proper bank that can meet the specific needs of your business. You may consider cash management, deposit reconciliation, mobile check deposit services and many other aspects before you make the decision. Compare different banks and pick the one that best suits your business.
- Prepare the documents
After choosing the bank, you should get ready for the papers and materials required. Different business structures may need different materials. Generally, you need a taxpayer identification number, which is also referred to as the Social Security number or the Employer Identification number. Other documents may include business licenses or business name filing documents (for sole proprietorships), partnership agreements, Articles of Incorporation or Articles of Organization. Additional documents will also be required depending on your own business structure.
- Open the account in person or online
After the preparation of the documents, you can start opening the account. If your business belongs to the industry of government, gambling, precious metals, or telemarketing, you should go to the bank and open the account in person. As for other businesses, you can open the account either in person or you can open it online. While online services provide the convenience, in person services allow you to verify information and ask questions. You can make the choice according to your preference.
- Verify the account
Once your account is set up, you have to ensure that everything has been done successfully. For instance, if you open a business checking account, you should make sure that the names on the checks match the legal name of your business. You can also track the funds to see if everything is running smoothly.