Open a business account is imperative to operate your business effectively. Business Bank accounts help maintain separate personal and business accounts, while assisting in the establishment of the financial history of the business. Establish a financial history is important if your business requires some time to apply for a loan or line of credit. When you open a business bank account, make sure you have the correct documents to expedite the process.
When you open any bank account, you must establish a tax identification number. For a business, this number can be your Social Security number or tax identification number, otherwise known as an employer identification number (EIN). If your company is one you own, you’ll use your social security number. If it is an LLC or corporation, you should have a unique identification number for the company. You need this number when you open the account and the letter from the IRS that establishes your EIN.
Business information entity
The name of your business and what type of entity is important in a business bank account is opened. Your account name must be exactly as it’s your business. If you’re operating under a single ownership “as it does business” with other name, be sure to bring your fictitious name statement you received when you please the county clerk or secretary of state. For other entities carrying articles of incorporation or establishment paperwork limited liability. Your banking consultant need to check to see that the information is correct.
A small organization with one or two owners may not need more than the articles of incorporation to establish who is an authorized signatory on the account. However, to be official, there should be a list of the current board, treasurers and other signatories to the bank account. This will need to be established in your articles of incorporation on what jobs are skilled signature and verified with the minutes of meetings of initial or subsequent business.
Any signature in a bank account must provide two forms of identification when the account is opened or added to the list of signatories. Proper identification may include a driver’s license, passport , credit card or ATM card. These must be current and have a signature too. You will be asked to sign cards for the bank to verify signatures if there is any question about transactions and possible fraud.
A bank account must be established with a minimum deposit. Check with your bank consulting business account on what is best for you and your company. Many financial institutions require business accounts maintain minimum balances, often the amount of $ 5,000 or more. If these are a problem because you are a new entity, compared to find something that works with new and small businesses. Also check the number of transactions that are allowed to do each month to include deposits, withdrawals and market transactions, if any. Understand how to be charged to your account before making a deposit and commit to the new account.