26% of business owners have admitted they didn’t go the extra mile and open business bank accounts for their companies. Initially, it might not seem like a big deal, but as your business expenses and revenue increase, you’re going to wish that you had a separate bank account from your personal funds.
Not to mention having a business bank account is one of the best ways to keep track of your company’s cash flow, which is useful when it’s time to file your business taxes. Are you ready to find out how to open an account and fill out your bank account paperwork?
Read on below.
Table of Contents
Types of Bank Accounts
Before opening a business bank account, you must understand the different types of bank account options you have. This will also play a part in helping you when choosing a bank to open an account with.
The different types of accounts include:
- Business Savings
- CD or certificate of deposit
- Business money market account
- Merchants account
Before you open any account, sit down with your bank representative and ask about each account’s pros and cons. They can help you determine which account will make the most sense for your business needs.
Choosing a Bank Account
When considering what bank account to open, one of the first things you need to consider are the bank account fees and the different bank account features. This will give you information on things like how to make. Deposits and what your daily withdrawal amount is.
If you plan to expand your business and give people more access to your bank accounts, you’ll want to choose an account that offers more customer options.
Calculate Bank Costs
We briefly touched on this above, but the costs associated with your bank account shouldn’t be so high that it’s costing you money. If you have to make frequent withdrawals, understanding the fee per transaction at the moment is crucial.
Another cost to consider is whether the ban charges you a statement fee. This is a fee that is charged to process your monthly statement, but some banks will waive the fee if you email them before a specific date during the month.
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Gather Bank Account Information
The entire trip will be wasted if you don’t have the correct information before you go to the bank to open your account. This is why you first need to gather all the necessary paperwork before scheduling and attending your appointment.
Some of the paperwork you need includes the following:
- EIN or employer identification number
- Important business details
- Initial deposit
- Information about your business structure
- Personal ids such as a driver’s license or passport
How to Open Business Bank Accounts?
When you’re thinking about how to open business bank accounts, there are some things you have to do first. First, collect all your paperwork, and don’t forget to consider your bank carefully.
Want to know more about business bank accounts and other business finances? Check out more blogs in this area.