In this article, we will clear some things up such as “why every business should have its own business bank account setup and what are the advantages of having a business bank account”.
Advantages of Having a Business Bank Account
- It is important that a business owner separates their personal and business banking
- This is very essential in running a successful business
- A business bank account helps maintain accurate records, make deposits, withdrawals, wire transfers, prepare reports, and much more…
- With a business bank account, you will have lessened your tax liabilities by keeping your business revenue and expenses separate from your personal assets
- You can also accept debit and credit cards with a business bank account. When you have an available business bank account, you can now start getting credit card payments. So, that makes it really easy for you to accept more types of payments and get more sales
- Business accounts have more lenient fees, such as fees being waved when you use online banking
- Business banking relationship may also help you to secure bank loans
How to Open a Business Bank Account?
Setting up a business bank account is one of the first things that any business should do. Here are the steps to set up a new business bank account:
- Form your entity such as your Limited Liability Company (LLC) or Corporation,
- Get your Employer Identification Number (EIN) with 147C Letter,
- Use your Company Documents and EIN to set up your business bank account.
In order to apply to a bank account service at any bank whether local or online, you need to meet the required documents indicated below.
- Certificate of Formation
- EIN with 147C Letter
Things to Know
Your company name needs to match your entity paperwork,
Your company address also needs to be the same,
Ensure that your EIN is also the same on your bank account as it is on your EIN paperwork.