A Comprehensive Guide For Opening A Business Bank Account
If you operate your own business, you should understand how difficult it could be to keep track of your earnings. Attempting to account for your personal and business earnings together is too complicated and will result in many errors and headaches. With this in mind, you should definitely consider opening a business bank account for your commercial earnings. Within this guide, you’ll learn precisely how to do just that! Before you can set up your bank account you will need to establish a business entity such as an LLC and you will need to apply for an Ein.
Reasons For Doing So
There are truly a large number of benefits associated with opening a business account. First and foremost, you will be able to easier keep track of your earnings, since they’ll remain separate. On the other hand, LLCs generally require a separate account. By law, your business earnings much be kept separate from the personal accounts of your employees and partners. A separate bank account helps to make the tax filing process significantly easier. And last, but not least, a separate bank account can add legitimacy to your business.
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Before heading to the bank and attempting to open your account, you should realize that a handful of documents and some information would be required. Of course, the information required would vary substantially depending on the type of business you’re running. As a sole proprietorship, you’ll need your SSN or business tax ID number, as well as your business license. A lot of banks will want you to have already applied for an ein as well for tax purposes. Finally, you will need a business name-filing document. Just remember that the specifics will vary depending on the business type. Therefore, you should check the specific requirements for your individualistic business, before moving forward.
Applying and getting approved for a business bank account is similar to the personal bank account application process. There are many factors that can prevent you from getting approved for a bank account. If you have a poor credit rating, filed bankruptcy within the last 6 months, or have a history of check returns due to insufficient funds, you may not be able to get a bank account with your local bank. Of course, this does not mean that you cannot get a bank account, because there are other options available for individuals like yourself.
Second-change programs will be your best option, if you get turned down for a business bank account on your first attempt. Never give up on your goal, because there are alternatives out there that you can benefit from.
Before opening your account, you should figure out precisely what type of account you desire. In some cases, you may be able to get out of paying monthly fees, but more costly accounts can provide the business owner with additional benefits. For instance, cash management services may be provided to those that do pay a monthly see. Finally, you should also make sure that you obtain a debit card for your new bank account. This card will provide you with easy and rapid access to your business’s income.
Although the process may seem complicated, it is not. Once you’ve figured out precisely what you want and need, you’ll want to acquire the necessary documentation. From there, you’ll want to head to your local bank, where a banking representative will be able to help guide you through the entire process. If you have your LLC, IRS EIN, and a copy of your business documents, opening your new bank account should be a breeze.