3 How To Open A Bank Account As A Small Business With 13 Steps

doylc.com - How To Open A Bank Account As A Small Business - Running a business is complicated, but you can easily track your expenses by opening a separate business bank account. Look around to see if banks offer small business perks. When it's time to register, gather the necessary information and register in person or online.

• Obtaining necessary information

Get your tax ID. Banks usually require you to use a business ID to open a bank account. In the US, you should obtain an Employer Identification Number (EIN) from the IRS. Although sole proprietors can use their social security number as a tax ID, most banks want an EIN.

Claim your EIN at https://www.irs.gov/businesses/small-businesses-self-Employed/apply-for-an-employer-identification-number-ein-online.

Get your business license. A bank may also want to see your business license. Contact your local or state government for information on how to obtain it. You will likely have to pay a fee.

Your business license should include both the owner's name and the company name.

Make copies of your legal documents. If you have formed a corporation or limited liability company (LLC), you should file forms with your state. Corporations produce articles of incorporation and LLCs produce articles of incorporation. A bank may want to see these, so find your copies.

After your state approves your business, you should get copies back. If not, contact your Foreign Secretary.

Show who can use the business account. The bank needs to know who is authorized to withdraw money from the account. Gather the following legal documents:

A partnership should have a partnership agreement which should include your company name and the names of all partners.

A limited liability company should have a company resolution listing the authorized signatories.

A company should also have a corporate resolution identifying authorized signers.

Collect personal identification for all signers. Banks will likely require personal identification for anyone who can register the account. Generally, you will need copies of each person's driver's license or other government-issued identification.

Collect proof of your company name. You may conduct business under an assumed name, also known as a trading name or DBA (“doing business as”). The bank will probably want to see this document. You should have received a name certificate when you applied for your assumed company name.

Have your business address verified. A bank may also want to see your address. A copy of the electricity bill is usually sufficient. However, you may need something else, e.g. B. a communication from the state.

• Reviewing your options

Make a checklist of your needs. Think about what you need from your bank account. For example, you might want a free business account or a savings account that can help you save on taxes.

If you don't know what you need, talk to a new small business owner. Ask where they have their business account and what features they like. Ask if they wish the account had anything.

Contact several banks. Start with the bank where you have your personal bank accounts, but don't stop there. You should also check with other local banks. You can also check with local credit unions, although not all offer commercial bank accounts.

Ask about special benefits for entrepreneurs. Some banks compete for small business owners. Stop by or call and ask what perks they offer. Consider some of the following benefits:

Reduced Fees. Some banks waive bank fees if you keep a minimum in the account each month.

Business credit card or line of credit. Small businesses rarely qualify for lines of credit, so you might want to sign up with a bank that's willing to offer a line of credit.

Coin and currency service. When you have a high volume of cash, you want a bank that's ready to handle it. Some banks offer overnight deposits, coin validation, and other services.

courier service. You can arrange daily pickups at your company.

• Opening your bank account

Consider opening more than one account. If your business is small, you might be able to get away with just a business account. However, you could benefit from having multiple accounts — one for taxes, payroll, and income.

If you are unsure of what you need, you should consult your tax advisor.

Check if you can open an account online. Most companies can open accounts online. However, some industries are prohibited from opening an account this way and must go in person:

telemarketing

gambling

precious metal dealer

Sign up for your account. Most banks should offer many ways to open a bank account. Choose the option that works best for you:

Personally. Gather your required documents and visit the nearest branch.

over the phone Call and provide the required information. They will tell you how to submit copies of the required documents.

On-line. As with a phone application, you can provide basic information and then send copies of your business documents.