Steps To Take To Legitimize Your Business By Opening A Business Checking Account

If you have a business that you’re making official and are taking all the steps you can to legitimize it, one of those steps should be to open a business checking account. Just as your business needs a registered name, phone number and address so your customers know where it is, a business checking account is important so it can receive payments and manage its funds. You also don’t want to mix in your business taxes with your personal income taxes unless you’re a single person sole proprietor business, and even then, depending on how your business is structured you still may want to open a business checking account. Most business checking accounts mason oh take a little more work on the application to open, and you may want to shop different banks to get the most competitive offers on their checking accounts. 

What You Can Use Business Checking Accounts For 

Typically you can use a business checking account for similar purposes that you would a personal checking account, though you probably would use it more for buying business equipment, payroll, and paying rent for leased store or office space. Usually you’ll need a business checking account to qualify for a business loan as well, though that process can be even more lengthy. While you generally won’t have a problem on what you spend your business funds on, there are usually fees that you can face if you conduct a certain amount of transactions or cross a threshold in cash deposits. If you have a high level of transactions but can keep a high account balance, analyzed checking may be the way to go. 

Documents You Should Have Handy To Open A Checking Account 

Like opening a regular bank savings or checking account, you want to have the documentation with you to verify you’re operating a legal business. Also be aware that you will usually need to make an initial minimum deposit in order to successfully qualify for a business checking account. The SBA lists the documents you will need at a bare minimum to open a business checking account, and they include a copy of your employer identification number, though if you are a sole proprietor this would be your regular SSN. If your business is a partnership or is run by more than one person, you’ll want to have the documents detailing its formation, and you’ll usually need to present a copy of any applicable licenses and other registration information. Always check with the bank to see what they require. 

In conclusion, establishing your business bank accounts is the first step to making sure your business assets are separate from your personal ones, and for giving it more financial stability. It never hurts to check with the bank where your personal accounts are first to see what their business banking is like, but you may find you can work better with another bank or credit union. Once you’ve shown good financial management in your business bank account, you may want to apply for a loan.

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