When it comes to starting a new company, chances are that you don’t have an endless supply of start-up capital with which to get the ball rolling. Not only that, but you will need to open up a separate account so that you can manage your business finances without it getting mixed with your personal ones. So, with that in mind, let’s see what goes into opening a business bank account so that you can ensure financial success for you and your company.
Step One: Get Your Paperwork Done
While the particular documents may vary, the most important thing is that you get a Tax ID for your company. This makes it a separate legal entity, which is how you will be able to get a new bank account. As for how to get a federal Tax ID, all you have to do is fill out the Tax ID application, pay the fee, and you should get a number within a few hours.
Step Two: Contact the Bank
In this case, you will want to shop around. While it may seem more convenient just to use the bank you currently have for yourself, the fact is that you can benefit from finding one that caters to businesses. Some things you want to consider when choosing a bank include:
- Opening lines of credit
- Processing credit card payments
- Having multiple accounts
- Low fees and interest
Overall, you want to compare different banks and see what they have to offer for your business. Sometimes, letting them know that you’re shopping around can make them more competitive so that they will offer more perks.
Step Three: Determine Which Accounts You Need
Generally speaking, you don’t want to handle all of your company expenditures from a single account. Payroll, taxes, savings, and investments should be done from separate sources so that everything is easier to manage. If possible, create an account for each kind of transaction.
Once you’ve taken the above steps, you should be ready to go.