What you need to open a business bank account, changes depending on the kind of business you own. It also depends on the kind of Business bank account you are looking for and the bank you wish for. There are three important types of bank accounts. First is the business checking account that can be used for every day business-related transactions. Second is the business saving account used for storing built interest and surplus cash. And lastly, there is the merchant services account to be used if your business receives credit card payments. Here are some usual things you will need for opening a business bank account.
1. EIN or Employee Identification Number or Social Security Number:
For establishing the identity of your business, you will have to provide the authorities with EIN. Along with that, you will need other documents sent to you by the IRS when they issue an EIN for your business. If the business is the sole proprietary kind of company, you might be able to use the social security number instead of the EIN.
2. Personal identification:
Almost all the banks will ask for one or two personal identifications for proving that you are connected to this business. For opening a business bank account, you need to be the owner or top officer of the organization. Some of the valid kinds of personal identifications include state-issued IDs, passport, or driver’s license.
3. Business license:
A business license is issued by the local or state government and it shows that you are authorized to work in the specific jurisdiction. There are different processes involved in getting a business license offered by the state and city authorities. So, it is a good idea to find out what is required in your area.
4. Certificate of the trade name:
Several businesses work under an assumed name that is different from their legal name. For instance, Alphabet Dairy might be operating with the name “Alphabet’s”. If this is the case with your business, you will be required to file a fictitious business name. This is also called DBA or doing business as a name. This is to be done with the secretary of state. Your bank can ask for a copy of this DBA filing document to confirm the trade name of your business.
5. Partnership agreement:
Some businesses have multiple owners. These businesses must provide a partnership agreement. For the LLCs, you are going to need an operating agreement, and corporations’ bylaws will be required.
6. Organization of documents:
The different requirements for document organization range from state to state. However, to their core, these requirements are spelling out some critical components of your organization such as the name of the business, owners, address, registered agents, management structure, and the various activities your business will engage in. The most significant organizational document for any corporation is called the article of incorporation. For the LLCs, it is known as the article of organization. You need to maintain these foundation documents in a safe space and they must be ready to be displayed to the bank when required.
7. Credit card revenue each month:
The businesses that are applying for merchant services accounts, will have to provide estimates for their monthly credit card turnover or its processing history. They will also be required to provide the average credit card revenue volume while using the present merchant account. Some providers of merchant accounts also ask for extra documents such as Business bank account statements and financial statements.
Keep in mind that if you have made it thus far, it means you have pretty much all things
needed for opening your business bank account. From here on, the next step will be comparing and selecting the proper business bank account for your organization. Remember, opening a business bank account may need plenty of paperwork. However, you must already keep a lot of documents ready at hand while setting up your business. After you have opened your business bank account you may concentrate on sales generation and filling these accounts with cash.