Why you should open a bank account for your business

Opening a bank account for a small business usually requires a bit more paperwork than when you open a personal account. So, if you are willing to open a business bank account, you should follow these steps!

Specialists always recommend opening a business account separate from your personal bank account, especially when you have a small business! This way, you can track your business' expenses correctly and in a much simpler way.

So, if you are willing to open a business bank account you should take a look at these tips!

To open a bank account, the financial institution will require your business ID, also known in the US as the Employer Identification Number (EIN). You can get this number at the IRS.

You may also want to check your business license. Banks can ask for this information, so you should contact your local or state government and ask how you can get it. Bear in mind that you might have to pay a fee to get it.

Regarding the use of the business account, you will need to present an authorization for all members of the company who will interact with the account. So, you will need to present before the bank the legal documents that certify their roles in the company, like partnership agreements and resolutions of authorized signers.

If you are not going to be the only signer, you will need to present copies of the personal identification of the rest of the signers on the account.

The final documentation you might be asked to present before you open the bank account is proof of business name and proof of address. The first one is the name certificate you filed when you presented your business assumed name. The second one can simply be a copy of a bill with your business address.

As you did when you opened your personal bank account, you should make some research before choosing the bank you want to open your business account at.

Check all the options, contact the banks and make some research about fees, business credit cards, courier service and line of credit. After you've made your investigation, go for the one that suits your business best!

After you've gathered all the paperwork and you've chosen the bank, it's time to finally open your business account!

Before you go to the bank in person, you may want to check if you can open the account online or over the phone. Some financial institutions offer this feature to save you time.

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