One crucial step to opening your own business is to create a business bank account. Having a business bank account is important for a multitude of reasons. It makes it easier for you to track your own income and business expenses, helps streamline things during tax season, and can even help you improve your cash flow to avoid overspending.
- Find the right bank for your business—Do your due diligence and decide on the bank that will best serve your business. Do not be afraid to call around and ask questions regarding what business services various banks offer their business customers.
- Find the business bank account that works best for you—Just like regular bank accounts, there are a few different types of business bank accounts to choose from. Do your research and determine what account structure works best for you and your business.
- Check for fees—Another factor to spend some time considering when opening your business bank account: What fees are involved with the account? Banks may waive fees if you are meeting certain criteria; however, it is good to be knowledgeable of how the account works.
- Gather your documents—You will also need a variety of documents to open your business bank account. Some common documents that banks may ask for are:
- Employer Identification Number (EIN) or Social Security Number
- Business formation documents, such as articles of incorporation, articles of organization, etc.
- Business license
It may be beneficial to contact your bank to determine exactly what they will need from you.