Bank Account for Business

Bank Account for Business

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BANK ACCOUNT FOR BUSINESS

Opening a bank account is a key step for any business. Having a separate account from your personal one allows for better bookkeeping. It also lets you separate your assets from those of the business and makes completing taxes easier. You should be able to open a business account at any bank for your corporation or LLC. In most cases, it will be easier to do so at one of the bigger banks due to their experience and range of offerings. By contrast, smaller banks have a lower risk of data breaches since there is a lower chance of them being a target.

It is good to note that to open a bank account for your business, that bank does not need to have a branch in the same state as your business. However, it may be simpler to open an account if there is a branch nearby. It also tends to be easier to open an account in person than over the phone or online. This streamlines the process of verifying identities.

WHY OPEN A COMPANY BANK ACCOUNT

Do not give in to the temptation to put off opening your company bank account. This should actually be the first action you take following incorporation and receiving your EIN. One of the main reasons to have a company bank account is to ensure you separate personal and business affairs. That will allow for asset protection and make completing your taxes hassle-free. It will also build up your reputation as a company. Remember to set up the company bank account in the name of your LLC or corporation.

REQUIREMENTS TO OPEN THE BANK ACCOUNT

Keep in mind that the requirements for opening a bank account for your LLC or corporation will vary slightly by bank. That being said, some documents are commonly required.

You will need to have either the Articles of Incorporation or Organization depending on whether you have a corporation or an LLC. These are documents you filed at the time you created the business entity.

You will also be required to provide the EIN or employer identification number. Most banks consider this the key part of your application. Consider the EIN as the business equivalent of a person’s SSN.

The bank may also require you to include your bylaws or operating agreement for a corporation or LLC, respectively. Among the possible requirements, this one is the least likely to be required by the bank. Even so, you should complete it and bring it with just in case.

Finally, you will likely need to provide proof of identity. It is common to require two forms of identification, with at least one including a photo.

WHAT ABOUT INTERNATIONAL CLIENTS?

It is more common than you may realize for international clients to operate a business in the United States. Therefore, they will need to open an account for it. You will want to consult an accountant before doing so due to additional complications in this case. That being said, the best solution is to come to the U.S. Or, you can appoint someone who is in the country as your officer or manager and have them open the company bank account. Alternatively, you could visit a local branch of any multinational bank or open your account online.

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