When you’re building your own business bit by bit, you’ll have to face the music yourselves. The challenges can be very much mundane or unique to your business setup. One of such challenges is to manage the money you’ve got coming in.
One way of doing that is to open a Business Bank Account. Of course, the procedure is rather time-consuming. You’ll need a bunch of documents as well. That’s the exact point we’re gonna hit in this article of ours. Let’s explore the types of papers you need before you get in touch with a bank.
These documents might differ in the case of some banks. You might end up with one or two types less or more depending on the bank you’re approaching and their own packages and offers. Without further ado, let’s get on with the topic of today.
The first thing you need for your business account in a bank is an EIN or Employer Identification Number. Every employee needs to provide this to the bank for their savings and business accounts.
In some cases, however, few banks can allow business owners to open small business accounts of their own using their SSN or Social Security Numbers only.
A Tip Just for You: You can get your own EIN by filling a form. You’ll get it from the IRS website. The good news is, you’ll be able to fill out the form for any kind of business you own. This is free of charge. Also, it’s valid for businesses in the US or one of its territories.
This is the same as when you’re trying to open a personal bank account. The authorities will ask for some sort of document (be it your passport, driving license, or any kind of ID that’s been issued by the state.
The bank will certainly need a copy of your business formation documents. If you have an LLC, these will be your organization’s resolutions. If you’re going for corporations, documents regarding incorporation are in order. Don’t worry; they’re nothing extravagant.
These documents tell your bank the way your organization works and about people’s responsibilities in your company.
The bank, where you want to open your bank account will want to see the partnership agreement between you and your partners (if you have multiple partners). This document entails the rights and responsibilities of said partners. Also, it’ll enlist the resolutions the company will abide by.
The bank will want to examine your business license as well. Speaking of which, your company should have every license it needs to operate within the laws. Depending on which part of the world you’re living in, the procedures for obtaining business licenses will vary. Make sure to check up on the rules.
Now, this is not always necessary. However, if you’re using a different name for advertising your services, the bank will want to verify that name after checking for appropriate documents. This is known as the DBA or “Doing Business As” name.
This is only necessary if you’re looking to avail of merchant account services from the bank. Essentially, your company will be able to deal in payments of various kinds. Existing businesses have it easy on them. They’ll have to show their transactions and average credit card revenue.
Startup companies won’t have anything to show for their accounts first up. However, they still have options to give the bank an idea about their estimated transaction per month.
Getting off the blocks and running your own business house isn’t easy. Be it a small business or a large franchise, a business account is a must for you. Getting an account such as this is easier said than done. You’ll have to muster up various documents and go through the actual process of an account.
In this rather small article, we’ve covered all the basic documents that you need for an account. In our next, we’ll go over the procedure of opening a bank account yourselves. Keep your eyes peeled at our blog!