Every company needs a business bank account that is solely for the company itself. Whether the company is owned by a sole trader, partners, or group of shareholders, having a business bank account is a legal requirement before starting a business.
If you are starting your own business and you consider on applying for a business bank account, the following are steps on how to open one.
A bank account is a financial account maintained by a financial institution for a customer. A bank account can be a deposit account, a credit card account, or any other type of account offered by a financial institution, and represents the funds that a customer has entrusted to the financial institution and from which the customer can make withdrawals. Alternatively, accounts may be loan accounts in which case the customer owes money to the financial institution. Source: Wikipedia
Know The Types of Accounts for a Business
Research what type of bank account is suitable for the business you are starting.
- Savings accounts are often for personal or family uses and are not advisable for business companies.
- Checking accounts allows clients to pay bills, withdraw and deposit with a use of checks. However, this type of bank account requires a maintenance fee or minimum balance of $ 5,000.
- Money market account possesses features of a checking account and a savings account but its difference is that this account earns more interest as compared to the two accounts. Minimum balance ranges from $5,000 to $10,000. The higher the minimum balance, the higher is the interest rates and earning rates.
Complete all Needed Documents
Documents needed for the bank account application are business licenses, papers regarding how the company is owned, and employer identification number. However, you will need to know other requirements needed for the application since banks have some differ in some requirements.
Apply Online or Directly From the Bank
Find out if the bank you chose has a website and if customers are allowed to apply online. Or you can directly go the bank and apply there.
Deposit Money to Open an Account
In order to successfully apply for a business bank account, you will need to deposit money at least worth of $2,500 depending on the rules of the bank. You can also pay your employees salary through their own bank accounts opened on the same bank with your company.
Make sure that the bank you chose to save your business money is secure and stable. This is essential since 10 percent of small business experienced being robbed from their bank according to statistics.