Requirements to Open a Business Checking Account

If you own a business and you don’t have a specific checking account for it, you’ve probably run into many problems with your finances including disorganization and confusing your tax returns and deductions. If you are not convinced that you need a Business Checking Account, maybe this guide on our list of Reasons to Open a Business Checking Account will convince you to open one for your business!

After you are convinced you need a Business Checking Account, here is a list of requirements that you may need when you open a Business Checking Account.

Which Business Account is Right For You?

Business Checking Account

One of the first steps you should take when starting a business is to open a business checking account. With this account, you can write checks, transfer or receive money electronically, withdraw or deposit funds using a debit card, and separate your personal and business accounting. The best business checking accounts typically have generous bonuses when you open an account, flexible network availability, and low fees.

Business Savings Account

With a business savings account, you can keep your money in a safe investment while earning interest each month. Some of the most common business savings accounts include:

• High-Yield Savings Account: A high-yield savings accounts carry low fees and allow you to build your savings by earning interest each month
• Business CD Account: CD accounts are another type long-term business savings account that earn higher interest rates than traditional savings accounts; however, you have to keep the funds in the account for a long period of time as short as one month to ten or more years to avoid costly early withdrawal fees.
• Money Market Account: An interest-bearing account that generally pays interest rates higher than a savings account; you’ll earn a lower interest rate than other investments because MMAs are considered safe investments.

Furthermore, it is important to note that business owners should have both a business savings and checking account to separate their working capital and savings funds.

Choosing the Right Bank

Once you determine which account(s) you want to open, you should figure out which bank you want to open it at. It is important to look at all the factors to decide which financial institution you want to bank with.

• Existing Banking Relationship: Always start your search with a previous banking relationship when setting up a business bank account
• Affordable Costs: Consider the affordability of the costs you might be charged, such as monthly servicing fees, deposit fees, and ATM fees
• Convenient Network: Make sure the location, as well as the number of ATMs and branches, suits your needs
• Good Online/Mobile Experience: Make sure your bank offers a good online experience, which includes online bill pay and mobile deposits
• Ease of Bookkeeping Integration: Ensure your bank account and bookkeeping software integrate
• Support for Future Needs: If you expect to need more than just bank accounts, make sure your bank offers small business loans, lines of credit, and credit cards; a small business credit card allows you to float business expenses and often offers rewards

Requirements Based on Type of Business

Finally, once you have decided which business account and bank you want to choose, you should be informed on the requirements for each type of business.

If you don’t have one of the business documents listed, bring a document such as board meeting minutes. If you don’t have documents issued by a government agency, all authorized owners and signers must be present at account opening.

Author’s Verdict

A business checking account is a great way to help organize your business and make transactions. They are not hard to open! You just need to gather the necessary documents that will allow your bank to open a new account for you. Bring them to your account opening and you’ll be on your way to opening a business checking account! If you’re interested in other possible business bank deals, be sure to check out our full list of the Best Bank Deals!