How to Open a Business Checking Account

One of the most difficult steps when opening a business is opening a business checking account to deposit any profit you might make into. Most banks are more than happy to assist you in the process and will be able to provide a list of paperwork you will need for the account.

What type of business are you?

The first step is to determine whether your business is a Sole Proprietorship, Limited Liability Corporation (LLC) Corporation, Partnership, Corporation or S Corporation. The classification of your business will determine what documents you will need from the government and what type of account you will need to open. A sole proprietorship, generally a “mom and pop” operation, will have very different banking needs from a corporation so it is important to determine with your local government office what type of small business you are.

Determine your banking needs

Most new small businesses have very simple needs. They need access to their account and funds and the resources to expand and grow. Before meeting with a banker, sit down and create a list of needs and wants. Include everything from internet banking and bill pay to debit cards and night deposit access. Bring this list with you to the bank and compare your needs with the accounts they have available. Remember that banks want to be competitive with small businesses and most will customize to meet your needs. Talk to your banker about any relationships you may have with the bank on a personal banking level and be honest about what long term plans are for your business.

Easy Step By Step Instructions For Opening a Business Checking Account

• Determine what type of business you are. This seems like a simple step but 90% of the accounts I saw as a banker had no idea whether they were a sole prop or an LLC.
• Have all your paperwork with you when you go to the bank. Any paperwork you may have received regarding a tax ID number, owners and titling should go with you. These documents will not only help to determine what type of account you need but will be necessary for actually opening the account.
• Determine what your needs are now versus a year from now. Do you have start up costs that will be coming out of the account soon? Do you need to be able to access deposited funds the next day or can you wait a week while the checks clear? In a year will you be expanding or adding signers to the account? These questions will help you determine exactly what you need for your account.

Warnings, Advice, and Suggestions When Opening a Checking Account

Do your best to open an account with a bank you hope to be working with long-term. Be sure you consider both local and national banks for this purpose.

(1 votes, average: 4.00 out of 5)
 Loading ...