Checking account for your business: Best place to save money
Checking account for your business is a great place to deal with your payments and keep the money safe. On this platform, you will enhance your library about checking accounts. In this blog post, you will explore how to open a checking account for your business.
You will also discover some requirements that are necessary to open this account. This post will deliver some notable benefits of a checking account for your business.
What is a checking account for your business?
A checking account for your business is a destination where you can keep the earnings of your business which functions similarly to a personal checking account. This account can be used to withdraw or deposit cash, debit card purchases, bill payments, and check deposits, much like an individual checking account.
Traditional physical banks, online available banks, and credit unions all provide checking accounts for business. These banking accounts might need more significant balances to avoid maintenance fees than personal checking accounts.
To avoid fees, several accounts must maintain an average balance of tens of thousands of dollars or $100,000. However, checking accounts for businesses are available without any fees or no minimum balance requirements.
How to open a checking account for your business?
The guidelines to open a checking account for your business are given below.
Select a Bank
When selecting a bank, consider the minimum balance requirements, fees, interest rates, mobile app features, online accounts, ATM locations, credit or debit card payment ability, and many more. Examine the bank’s additional business offerings, loans, or advisor access. You might require these services in the coming days, even if don’t need them now.
Determine who should have account access.
You may desire an employee of your business who can handle the financial issue. You might permit them to sign checks only up to a specific dollar amount. Determine the limit to place on their access to your checking account.
Collect necessary documents
To access the account, you or any person who will be given permission will require the necessary documents.
Fill an application
Generally, you can apply for a checking account online or physically at a bank location. Fill out an application and requirements of the bank regarding personal information.
Pay the required opening deposit
From another bank account, you can deposit cash, sign a check, or transfer funds. Have a bank account number and routing details ready if you intend to send money.
Requirements for opening a checking account
If you want to open a business checking account, you should have the documents mentioned.
- Your Social Security number serves as your TIN (Taxpayer identification number) if you are a lone entrepreneur.
- Employer Identification Numbers (EINs), which are available on the IRS website, are required for corporations, partnerships, and companies that employ people.
- You must provide information regarding your name, contact number, date of birth, ID, driving license, passport, etc.
- Your current business license copy.
- Assumed name certificates should be provided by the companies that have registered an unauthorized business (DBA or doing business as).
- To cash checks made payable to your business, you will be required to add your DBA to the account.
- The documents you need to form a legal business entity include your agreement for partnership or operation and articles of organization.
- If you require credit card payments to be accepted, you may have to give this detail.
Benefits
Checking accounts for your business has a lot of notable benefits, but a few of them are discussed in the below description.
- Reduces the risk of liability
- Makes money management easy
- Simplifies preparation of tax
- Provide credit access
- Protect your finances
Conclusion
Checking accounts for your business can assist the company. Applying for credit from suppliers and using your company checking account to make on-time payments will help you establish a good business credit history.
You can discover some appealing benefits in this blog post, making it simple to open a checking account for your company. Some requirements are also mentioned that you need to meet.