Content
It’s always a good idea to separate your personal life from your business life, especially when money is involved. If you have a business, no matter how small, it’s good financial practice to open a business bank account. In general, you should open a business bank account as soon as you start handling business transactions.
- You will likely be able to obtain this through your county clerk’s office.
- Customers may also feel more secure writing checks to a business name than to you as an individual.
- If you own a partnership or corporation, or if you have employees, you are required to apply for an Employer Identification Number.
- That means if someone sues your business and the court awards them compensation, your personal money could be fair game, even if the way you earned it had nothing to do with your business at all.
- It’s a simple, low-cost investment that comes with a plethora of perks and protections for businesses.
A second option is setting up a business banking account, which is also relatively easy with a few simple steps. If you prefer the convenience of opening a business What Do I Need To Open A Business Bank Account? bank account on your own, you might decide to pursue the online option. Setting up a business bank account is an integral part of getting your finances in order.
How We Make Money
Depending on the type of financial institution, you can either go into a branch or open an account online by uploading your documents. You may also need to make an opening deposit to fund your account. Once you’ve gathered together all the proper documentation, you can then meet with your banker to open a bank account for your LLC. Doing your research beforehand and bringing all the required documentation with you will make this final step in the process an easy one. At least two General Partners must be present at account opening at a Huntington branch location for a General Partnership Bank Account with the following documentation. The Controlling Party, along with any Beneficial Owner who owns 25% or more of a business, will be required to provide additional information (see our sample form).
If your business is expanding quickly, this Citizens account may give you a nice boost. Perks include 500 free check transactions per statement period https://kelleysbookkeeping.com/ and 30 cents for each additional charge. Waive the monthly $25 fee by maintaining a $10,000 average daily balance or $35,000 monthly combined balance.
Business Money Market Bonus Rate Promotion
Your documentation requirements may vary based on where your business is located, too. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first.
- Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money.
- With Business Advantage Savings, you’ll pay no fees for stop payments, incoming wire transfers, or electronic deposits.
- Business bank accounts help you professionally manage your business finances and separate those funds from your personal finances.
- If your business bank account needs are fairly simple, and you require few monthly transactions, Truist Simple Business Checking account could be a good option.
- However, you need to make sure everything went through successfully.
A U.S. Bank business checking account and Everyday Funding give you access to your funds within hours, seven days a week, so you can increase your cash flow. Having a business bank account allows for a separation of your business finances and cash flow from your personal finances, and is a professional means to do business. Many banks enable you to apply for a business bank account online, though a few may require you to visit a branch in person to do so. Applying shouldn’t take too long as long as you have all your paperwork in order. Now that you know which business bank accounts you need and which bank you’d like to work with, you should gather all the important documents discussed above so you’re ready to apply. If you have any questions about anything else you might need in order to apply, reach out to the bank to ask.
Open the account online or in-person
Belle Wong, is a freelance writer specializing in small business, personal finance, banking, and tech/SAAS. Opening an LLC bank account shouldn’t be difficult, provided you do your research and bring the proper papers. Not every employee or partner of a business is authorized to do banking on behalf of the business. To open an account, you’ll need an authorized representative to handle the paperwork with the bank. Starting and running a business can be challenging but having the right bank and right account can help your business thrive. The information below walks you through the easy steps to get you up and running.
Remember that not all businesses will have these documents—but if yours does, you’ll need them to open your business bank account. Sole proprietors, for example, won’t have business formation documents. If you’re using the wrong credit or debit card, it could be costing you serious money.
Although many credit unions might offer similar services—such as administering loans as well as setting up checking and saving accounts—they might have fewer features than a typical bank. This means you can manage your money from anywhere at any time without having to go to a bank. If you want a bank account that makes it easy to budget and save automatically, look for a business account that lets you set up free Envelopes. Now that we’ve outlined why you should have a business bank account for your sole proprietorship, let’s get into how you can open one in 3 easy steps. If you’ve got big plans for your business (and why shouldn’t you?) you might eventually need to look into some small business financing options so you are able to grow.
Some business owners open a business account at the same bank they use for their personal accounts. Rates, fees, and options vary from bank to bank, so you should shop around to make sure you find the lowest fees and the best benefits. This specific tier has a low $8 monthly maintenance fee and allows unlimited signers on your account. While this program is a great deal for sole proprietors, it allows for unlimited signers, making this a great option for smaller startup too. If you like the bank you use for personal finances, and it has a business checking account option that matches your needs, there’s nothing wrong with opening an account there. Being able to access information from multiple accounts through one location, website, or mobile app is a nice bonus.
