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7 Common Requirements to Open a Business Bank Account

Some banks require a minimum deposit to open a new business bank account. Check if this is a requirement in advance and if so, make sure you have funds available to transfer and get things started. Keep in mind that the minimum opening deposit may or may not be the same thing as the minimum monthly balance to waive any maintenance fees.

Once your account is set up, you can deposit funds and begin using it just like you would any other bank account. Your bank may require you to make a certain minimum deposit when you set up your account. This can be cash or money you transfer from another bank account via electronic or wire transfer. Your bank needs proof that your business has the appropriate What Do I Need To Open A Business Bank Account? licenses before it will enable you to open a business bank account. The requirements to obtain a business license vary depending on where you live, so do some research to find out what’s required in your area. Your company will appear more professional if you can write your vendor checks from an LLC bank account rather than from a personal account.

Reasons to open a business bank account

This can prove costly if you’re constantly bumping up against this limit. Review your business budget and anticipate how your company’s future growth could affect how much you pay in fees every month. Banks that do offer the option of applying for a business bank account online may take more time to review your documents and set up the account than they would if you applied in person. A business bank account allows checks to be made to the business – which is more professional than asking customers to make checks to your name. Your customers can also pay with credit cards, and employees can handle banking tasks on behalf of the business. Small Business Administration, most business bank accounts offer benefits and perks that personal bank accounts do not.

• Banking products are provided by Bank of America, N.A., and affiliated banks, Members FDIC, and wholly owned subsidiaries of BofA Corp.
• Some financial institutions may even waive initial deposits or contribute to them for qualifying accounts or as part of an introductory offer.
• Once you’ve found the right bank for your business, the other required documents should be easy to produce.
• Information needed to open a business bank account often includes your business address, your business trade or doing business as (DBA) name and your business’s entity type.
• Review your business budget and anticipate how your company’s future growth could affect how much you pay in fees every month.

Bench assumes no liability for actions taken in reliance upon the information contained herein. ATM options If you are going to need cash, https://kelleysbookkeeping.com/how-to-build-a-flexible-budget-variance-analysis/ you might want an ATM close by, not three towns away. And nothing beats the convenience of an after-hours ATM when you need one.

Better than a piggy bank

A business formed as a limited liability company (LLC) may need an EIN, depending on whether it has employees. If you’re still unsure whether your business needs an EIN, refer to this checklist from IRS.gov and seek professional advice. Most business bank accounts offer perks that don’t come with a standard personal bank account. The main reason to open a business bank account is to keep your business finances separate from personal funds.

While you may only have one personal bank account, your business likely needs multiple accounts. As a small business owner, it’s important to keep your business and personal banking separate so you can monitor the profitability of your business and avoid mixing transactions. With a business bank account, you can help protect yourself and your business. Before opening one, be sure you understand what you need in order to start making deposits and getting the most from your account.