Setting up business banking account is one thing that every small business is going to need for a business bank account.
The reason for this is that your business accounts should always be kept separate from your personal accounts for tax reasons, not to mention other legal reasons. The process of setting up business banking account and the need for sutting up business banking account will be discuss in this article.
Many small business owners tend to think that it is perfectly fine to mix the two accounts because they own the business and need to get paid, when in reality nothing is further from the truth. Not to mention the fact that setting up business banking account is very easy so there is no excuse not to do it, and also easy to maintain.
The very first thing that you need to do in setting up business banking account is to go for a bank that has a great reputation.
Something you need to consider when choosing a bank is their location that is how convenient it is for you, and also check the accessibility.
You must set up a business account if you're starting up as a limited company, partnership or any other key business structure. Sole traders can use their own personal accounts (or via a new business account
The next thing that you need to do is to determine what kind of a business bank account you are going to need. Something to keep in mind is that there are numerous business bank accounts available and each one is perfect for certain types of business.
So before you start with setting up business banking account you are going to need to determine which kind of an account will work the best for your small business.
In trying to figure out what kind of an account is going to work for your small business you are going to need to keep certain things in mind.
Some things that you are going to need to keep in mind is what kind of a business you are, how many deposits you will be making in a given week or month, how many checks you will be writing each month, what kind of a balance you normally keep in your accounts and how much money you withdraw each month.
By knowing the answers to all of these questions you can choose the best plan.
Now that you have figured out which bank you are going to use and what kind of a business bank account you are going to need you are ready to setting up business banking account.
The first thing that you are going to need to do is to make sure that you have all of the documents that you will need. Once you are sure you got all the required document, setting up business bank account will be much easier.
The documents that you are going to need in setting up business banking account will depend on what type of business you have, meaning what kind of ownership your small business has.
But some things that you will need regardless of what kind of ownership you have are a taxpayer ID number and a certified copy of the fictitious name certificate.
If your business name is different from your own you then you will have to put your signature on file with the bank and if you want others to be allowed to sign the checks you must authorize them to do so when signing up for your account which is called list of signatories. Of course changes can be made at a later date to your account in person. You are also going to have to provide the bank with two pieces of identification that are current that include your signature and the other authorized users signatures so that the bank can verify signatures when needed.
Submit, in addition to the above information, a copy of the IRS Ruling on Tax Exemption, a statement on corporation letterhead indicating the corporation's tax-exempt status, and an employer identification number (EIN) for a nonprofit organization.