6 Easy Steps to Open a Business Bank Account

While we take care of various elements when setting up our new business, we often ignore the tasks that can prove to be of great importance in the future. One of those tasks is deciding to open a business bank account, choosing the right bank is extremely important as this association will determine your financial holdings in the future.

A lot of small businesses feel that they could do away with a business account. You can definitely use your personal account for your business. If your transactions are less and the money flowing in less, then personal accounts can work. However, having a business account can bring you a lot of benefits in the future.

• Firstly, keeping business away from personal is always the best financial decision one can make. In the long run as business increases, it can get very difficult to separate personal and professional funds.
• Secondly, it gives the entrepreneur a clear picture of the status of his/ her business funds.
• Finally, in some countries, doing business without a business account can invite legal implications.

Your best business account will govern all your financial planning, it is indeed the foundation for your business. So, here are a few things that you must look out for in a bank before associating your business with them.

Offers and Perk

A bank needs customers as much as customers need a bank, so check out the perks that a bank is ready to offer to induct you as its prestigious customer. After all, as you grow, the bank will also grow, thus choose the bank that provides the best introductory offer. For example, higher interest rates or less account opening amount. These can be good perks for the start.

Service Charges

Typically, the more features a bank offers, the greater will be the service charge. This is a fee that you will pay, even if you don’t use all the features. Thus, if you are just starting your business paying a big service charge might not be a good idea.

Number of transactions

Initially while starting your business, you will require to perform multiple transactions to vendors and other service providers. Thus, transaction fees can be a hole in your pocket. So, select a bank that offers unlimited free transactions.

Money transfer charges

Sending money from one account to another will be an everyday business affair. Thus, free wire transfers will be a great bonus for your business.

Greater Interest rates

Getting interest from the money sleeping in the bank can be a great idea and a bank for offers higher interest rates can be the best choice for your growing business.

Now let’s look at the 6 steps to open your business bank account:

EI Number

EI or Employer identification number is the first thing that you would require to open a business account. An EIN is a unique identification number that is assigned to business entities by the Govt Revenue department.

Personal IDs

Once you get your EI number, you need to keep your personal Ids ready. Your passport or driving license could be a valid Id proof document.

Business registration certificate

Do you have the license to do business in that country? Your business registration certificate with your name is the next document you will have to submit to the bank.

Firm name registration

The registered name of the firm or brand will be required to open your business bank account so that your name and the firm can be registered with the bank.

LLP Agreement

If you are a partnership firm, then your partnership deed needs to be submitted.

Approach the bank

Now that all your documents are in place, pick the right bank that offers maximum benefits and start your business association with your financial partner.

The Bottom line:

Choosing the right bank account is a big task and considering all the above points while selecting your banking partner. In case you are starting an overseas business, take the service of a financial expert, who can guide you through your financial journey and ensure that you take all the right decisions.