Your business needs a bank account
So you want to start a business? You need an account with a bank! That’s right, if you’re not aware of this already, opening up a business bank account is one of the the first things that entrepreneurs should do when starting their new company. Without one of these accounts, your company won’t be able to deposit or receive any money from clients and vendors. So get on it- open up that account today!
Resist the temptation to use your personal account
You may be tempted to skip the step of setting up a business bank account. Why go through the hassle when you can just use your personal bank account instead? Here’s why you should not do that. Taking in revenue for a business within your personal account can be messy, especially at tax time when you will need to report what you made and how. You should always have a separate bank account for any entrepreneurial activity and not put any money into the personal account that will go towards company expenses. Keeping things separate will also protect you if anything happens to your business, you won’t lose any of your personal assets.
You can get your account up and running fast
It’s a great day and age to be an entrepreneur. There are many banking institutions to chose from and most of them offer easy to use tools online to help you open a business account. With just a few clicks of the mouse, you can open up an account at thousands of financial institutions including banks, credit unions, and investment firms.
You’ll need some money in order to fund your business venture. You can get started with as little as $100 at some institutions. Other factors you may want to consider are the rates they offer, any service fees they charge and how much money they require you to keep in your account for it to remain open.
Most banks require these things
Banks may vary in their requirements for business accounts. You may also be asked for specific things based on the type of business you have and how you have set it up. For example, if your business is set up with partners, you may need to provide a signed operating agreement. But there are some things that most banks will require for just about any business.
An official ID with your photo to verify your identity
Articles of incorporation or proof of registration with the state
An IRS Federal EIN Number/ Tax-ID
If you are not sure, ask an expert
If you are not sure what bank you want to go with or what type of accounts you would like to set up, it doesn’t hurt to ask a financial expert for insights. You can reach out to a trusted business consultant or a professional bookkeeper. They might be able to steer you in the right direction based on your unique business and needs. you could of course ask bankers for insights but their opinions may be biased in favor of getting you to chose their banking institution so keep that in mind as you use their insights to weigh your options.
You can get in touch with me here for a FREE consultation.
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