Business Bank Accounts: How to Open a Small Business Bank Account 1 - 2 - 3 With a separate business bank account for your business, you can keep your finances better organized, obtain additional business banking services, write checks and add credibility and professionalism to your business. A separate bank account or checking account is also important when it comes to taxes - it can save you valuable time, money and hassles. Accounting suddenly become so much easier. It doesn't have to take much time or cost a lot of money to obtain a business bank account. Some banks offer free accounts - even for businesses. In addition, internet banking is becoming standard practice. Many banks have features that allow you to manage your account, including direct deposit, online billing and scheduling regular payments automatically. An internet bank account can be simple to manage and very cost effective, especially for a small business doing all of its own accounting. When you go the bank to open your business bank account, you will need to prove that you are a business, so you will want to proper documentation. The documentation needed will depend on the structure of your business (sole proprietorship, corporation, LLC or partnership). Provide a certified copy of the fictitious name certificate if you are a sole proprietor and the account title will be in the business name (and the business name isn't your name). Business Bank Account benefits to look for: Online Banking and Bill Pay Checking account with No-Fee check writing No-Fee ATM card Free financial reporting and management tools Ability to earn a high risk-free yield Free transfers between your business checking and other accounts FDIC Insured When you've decided which bank you want to use, set up an appointment with a business banker to open your account. You'll need to bring in the following documentation to your appointment: An Employer ID Number (Tax ID Number) If you plan open a corporate bank account or pay wages to employees, you will need an Employer ID Number (EIN) also known as a Taxpayer ID Number (TIN). To obtain your EID, get a copy of the federal SS-4 Form Application from the IRS. You can download the form online from their website, complete it, and mail it back to them. Certificate of Incorporation, issued by the Secretary of State for the state in which your business is incorporated (How to Incorporate Online) Customized Corporate Seal (included in your Corporate Book) Photo Identification (usually a driver's license or passport) Corporate Resolution that specifically designates you a the authorized individual to act on behalf of the company Other Banks with Business Banking: US Bank Bank of America Chase Bank Wells Fargo Bank Citibank Regions Bank More Small Business Resources: How to Register a Business Name How to Apply for a Federal Tax ID Number You get a Federal Tax ID Number, or Employer ID Number (EIN), from the IRS. You can apply through their website, by phone, fax or mail. For fastest service, apply online. It can take up to five weeks to get your EIN if you apply by mail. The EIN you receive is your permanent number and can be used for business tasks such as opening a business bank account, applying for a business license or filing a tax return. If you don't know if you need a Federal Tax ID Number for your business, answer these questions. If you already have a Tax ID Number, but have misplaced it, you can call the Business and Specialty Tax Line at (800) 829-4933 and have them look it up for you. How to Get a Business License General business licenses are usually required of all businesses, even home-based internet businesses. You obtain a business license through your local city or county government office, and requirements vary by state, so you want to check with your own local office to get instructions. How to Incorporate in 3 Easy Steps Are you better off forming a C Corporation, or would you be better off in an LLC or Partnership business? Find out here which one will maximize your business profits and how you can get started easily online. Business Checks If you need checks or want to save money on personallized checks for your business (or yourself) Checks Unlimited has special offers on bank checks for first-time customers. You can get laser and ink-jet computer checks, manual, payroll - they also conveniently provide envelopes and labels. Checks Unlimited offers similar products with business computer checks compatible with Quicken and Microsoft Money and a 100% guarantee. I'd check out both options to compare prices on what you want.

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