How to Set Up a Small Business Banking Account
A small business bank account is the same concept as a personal bank account except you are using it exclusively for business purposes. Moreover, it helps to keep your business and personal transactions separate. In addition, many banks offer completely free business accounts, which is especially helpful if you are just starting your business.
- Select
the bank that you wish to open your small business account at.
Before you do so, you will want to make sure you have a business
name registered because the bank account will be opened under your
business heading. For instance, if your business name is “Puppy
Clothing, Inc.” that will be the name of your new account. - Choose
the type of business account you need. If you are just starting your
business, a basic business account is more than sufficient and it is
will cost you nothing to have. If you have been in business for
awhile, you might need other features that will cost you a small
amount every month. Choose the bank account that your business needs
right now, you can always upgrade in the future. - Fund
the account with the required amount or more. You will need to allow
the account to get up and running fully before you can begin using
it, which normally takes about a week. One of the nice aspects of a
small business banking account is that it comes with additional
perks that personal accounts do not. For instance, you will be able
to accept payments and your checks will clearly show your business
name, which allows you to look more professional.