How to set up a business bank account with banks
One thing that every small business is going to need is a business bank account. The reason for this is that your business accounts should always be kept separate from your personal accounts for tax reasons, not to mention other legal reasons. Many small business owners tend to think that it is perfectly fine to mix the two accounts because they own the business and need to get paid, when in reality nothing is further from the truth. Not to mention the fact that setting up a business bank account is actually rather easy so there is no excuse not to do it.
Difficulty rating: Easy to moderate
The very first thing that you are going to want to do is to pick a bank that has a great reputation. One of the best ways to find this kind of a bank is to go to a bank that you have done business with before. For example you had a car loan through them or they have your personal accounts. But something else that you need to consider when choosing a bank is that they are located in a spot that is convenient for you, not to mention that is easily accessible, meaning it is not so far out of the way that you dread going to the bank when needed.
The first thing that you are going to need to do is to determine what kind of a business bank account you are going to need. Something to keep in mind is that there are numerous business bank accounts available and each one is perfect for certain types of business. So before you can actually set up a business bank account you are going to need to determine which kind of an account will work the best for your small business.
In trying to figure out what kind of an account is going to work for your small business you are going to need to keep certain things in mind. Some things that you are going to need to keep in mind is what kind of a business you are, how many deposits you will be making in a given week or month, how many checks you will be writing each month, what kind of a balance you normally keep in your accounts and how much money you withdraw each month. By knowing the answers to all of these questions you can choose the best plan for the perfect price that will meet all of your banking needs.
Now that you have figured out which bank you are going to use and what kind of a business bank account you are going to need you are ready to sign up for the actual account. The first thing that you are going to need to do is to make sure that you have all of the documents that you will need.
The documents that you are going to need to set up a business bank account will depend on what type of business you have, meaning what kind of ownership your small business has. But some things that you will need regardless of what kind of ownership you have are a taxpayer ID number and a certified copy of the fictitious name certificate.
If your business name is different than your own you are going to have to put your signature on file with the bank and if you want others to be allowed to sign the checks you must authorize them to do so when signing up for your account. Of course changes can be made at a later date to your account in person. You are also going to have to provide the bank with two pieces of identification that are current that include your signature and the other authorized users signatures so that the bank can verify signatures when needed.