Tips To Opening a Business Bank Account (best practices)

If you run a small business, you need a business checking account to keep your business finances separate from personal transaction Here’s what you need prior to opening a business bank account:

• Personal identification

• Employer Identification Number

• Legal Business operating details

• Organizing documents, agreements

  Banks require a government-issued photo ID, such as a driver’s license or passport, to open a business bank account (some banks may ask for two forms). You also need to give your personal mailing address and contact information, along with your date of birth and Social Security number.

• Driver’s license or passport.

• Social Security number
  Businesses with multiple owners typically need to include personal details and
  identification for every owner with 25% or more ownership in the business. If your
  business has an Employer Identification Number, you need to provide that along with
  any corresponding documents from the IRS. Sole proprietors and single-member LLCs
  may be able to use their Social Security number.

• Employer Identification Number & corresponding documentation

  The business account application will ask for your business name and address, as well
  as your trade name or DBA name, if applicable. Beyond that, you’ll need to list your
  business entity type (sole proprietorship, partnership, LLC or corporation) and disclose
  the industry you’re in and type of business you operate.

• Business name & address

• Trade name or DBA name

  Organizing documents, agreements, entity type, and operating industry
  The documents you need to provide depend on how your business is set up. Here are
  common requirements for different entity types:
  ● Sole proprietorships: Business name registration certificate, business license.
  ● Partnerships: Partnership agreement, business name registration certificate,
  business license, state certificate of partnership.
  ● LLCs: Articles of organization, LLC operating agreement, business license.
  ● Corporations: Articles of incorporation, corporate bylaws, business license.

When choosing a business bank account, consider what type of account you need
and whether or not you want to open an account online. Then, compare your options by
evaluating the following factors:

• Monthly fees?

• Minimum balance requirements?

• Included fee-free transactions?

• ATM access (withdrawals and deposits)?

• Wiring, transfer and payment capabilities?

• Incidental fees (stop payment, non-sufficient funds, overdrafts)?

• Online and mobile banking accessibility?

• Additional features, such as bill pay, invoicing or integrations with other business
  tools?

  
  A business checking account is typically a must for small businesses. These bank
  accounts allow you to separate your business and personal expenses, prepare for taxes
  and legitimately establish your business’s financial presence.

  
  Take a look at some of the most popular and notable business checking accounts for
  small businesses to get you going in the right direction: 9 Best Business Checking
  Accounts of 2022 - NerdWallet.