Opening a Business Bank Account (Online and In-Person)
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Reasons to Consider Having a Separate Business Bank Account
Can I Have More Than One Business Bank Account?
Types of Business Accounts
Business checking account. This type of account is generally used to help business owners manage their day-to-day finances. This is typically the first type of business account a new business owner gets. Business savings account. This type of account, as the name suggests, is better suited than most business checking accounts to help business owners save money. Savings accounts may have more restrictions than checking accounts, such as limits on the number of withdrawals each month. But, savings accounts generally accrue more interest than checking accounts. Business credit card. These credit cards function similarly to personal credit cards, but are used for business expenses. They can offer small business owners access to a revolving line of credit, and many business credit cards come with rewards and perks. Merchant services accounts. This is a type of bank account, one that allows business owners to accept debit or credit card payments.
Online or Off: Which is Right for Your Business?
Step 1: Starting by Comparing Options
Whether you need to be able to make cash deposits How many transactions per month you expect to make Existing relationships with any banks Whether you need to visit a branch Your level of comfort banking online The reputation of the bank Any other business banking services you might need Your expected average balance in the account
What Kind of Balance Do I Need to Maintain to Keep a Business Bank Account?
Which Banks Offer the Best Features?
What Other Financial Products Can I Get?
Step 2: Knowing the Requirements to Open an Account
Organizational documents: If you’re a sole proprietorship, you’ll need to bring your Doing Business As form (also known as a Fictitious Business Name). If you run a corporation or LLC, you’ll be asked for your formation documents. Photo identification Employer identification number (EIN) or Social Security number for sole proprietors Business license
Do I Have to Be a Corporation or LLC?
Why Would a Bank Reject my Application for a Business Bank Account?
Step 3: Setting Up an Appointment
Applying for Your Account Online
Do You Need a Personal Banker?
Step 4: Keeping Your Accounts in Order
Business Banking That Grows With You
About the Author
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