How To Open A Business Checking Account
Choosing an appropriate banking service is a major technique to plan your business basics from
the starting point. Having an effective business checking account is a professional way to run your
business. It may seem easier to have one account for business and personal use. However, your
enterprise grows and you get busier. At this point, one may encounter challenges in assessing
numerous bank statements.
Creating separate accounts for your business, as well as, personal use, may seem inconvenient.
But it’s a good practice to ensure that your accounts are kept clean. A business checking account
enables you as a business owner to legally protected, as well as, compliant. A business account
offers benefits to your employees and customers.
In this article, you will learn
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How to open a business checking account.
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What are the benefits of a business checking account?

Factors to consider when opening a business checking account.
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Finding the right bank to open a business checking account.
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Documents You'll Need To Open A Business Checking Account.
What are the Benefits of a Business Checking Account
For most businesses, having a business checking account is a brilliant idea. As an entrepreneur
might want to open a business account for various reasons. One of the reasons is that your bank
might require you to ascertain that your account is for personal use only. Some banks might even
threaten to terminate your account once they notice an unusual number of business-related
transactions. Having a business checking account is probably going to make your business appear
professional to your partners, as well as, clients.
A business checking account allows you to assess your income and expenses efficiently. This is
necessary for business since, at tax time, many expenses might have been written off (they have
been secured from the tax owed). It’s becoming harder to identify deduction while using a personal
account. A business checking account allows the entrepreneur;
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To make payments.
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Plan the budget and manage payroll.
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Receive payments to the business.
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Generate financial reports for investors, as well as, potential lenders.
Most business checking account offer perks that are not provided by a standard personal account.
Such perks offered include;
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Protection. Having a business checking account protects limited personal liability. The
limited personal liability separates your business funds from your funds. Consequently,
merchant services also offer protection of purchases made by customers and ensuring their
personal information is kept secure.
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Professionalism. A business checking account will allow your customers to make
payments using credit cards. Customers will also be able to make checks out to the business
instead of paying cash directly to the business. Additionally, as a business owner, you can
decide to authorize employees to handle daily banking activities on behalf of the business.
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Preparedness. Business checking accounts will always offer an option for the business to
enjoy a line of credit. It is essential especially when an emergency arises, or when the
business might require new equipment.

Increased purchasing power. Business checking accounts enable a business to make vast
start-up purchases. It also helps in formulating a credit history for the business.
Factors to Consider when Opening Business Checking Account.

Introductory Bonuses and Offers.
It’s common for prominent banks to entice their new clients with an introductory offer or a
bonus. These offers and bonuses are predicted on the deposit made by the customer, as well
as, maintaining a certain amount of balance in the new account. For example, Chase Bank
offers a bonus of $300 to new customers who make a deposit of $1000 and maintain that
balance for two months. Also, the customer will be needed for several qualifying transactions
within the first two months.
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The Service Fee.
Most likely, a business checking account comes with some kind charges that incur monthly
that the bank considers as “service fee.” Most service fees would range from $10 to $30 per
month. Banks offering business checking accounts having more robust features may charge a
higher service fee. However, few extra bucks every month may not seem very significant,
unless you might want the extra features. These extra features may include no-fee deposit and
transaction, payroll services, or wire transfers.
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The Minimum Account Balance Fees.
Some banks might not have a minimum balance requirement. Other banks may condition this
fee on particular requirements, such as setting a minimum daily balance. Some banks might
want a certain amount of first deposit that would make you eligible for offers and bonuses.
Ensure you check this clearly in the terms and conditions of the bank selected.
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Transaction Allowances.
You should be aware that your bank is meant to facilitate your financial transactions, as well
as, hold your funds. A transaction can be in check deposits of cash. When choosing your best
bank, ensure you check for unlimited free transactions. If there are no free transactions, ensure
you check the number of offered for free, before being charged by the bank.
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Comparison of Online versus In-Person Services.
Do you need a bank that has physical branches you can access? Or do you prefer conducting
all your transactions online? Depending on what you prefer, this is an important factor to
consider when opening a business checking account. Businesses dealing in mainly in cash and
require to make in-person deposits; would want a bank with local branches conveniently
situated. If your business in main e-commerce and conducts most transactions online. Having
access to a physical branch may not be a critical factor. Banks offering services online may
have perks increased interest rates compared to brick and motor banks.
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Ease of Integration.
Nowadays, the most business has shifted to cloud-based software. These could based software
help in invoicing, accounting, expensing, and other financial matters. Banks equipped with
current technologies, allow easy integration with these platforms. Some banks do not offer this
service. Check carefully to determine whether the bank I’m you intend you open a business
checking account in, offers this integration with modern software apps.
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The Interest Rates.
Interest rates have now become an essential factor in many businesses. Interest generating
business checking accounts have become a useful tool in enabling a business to rack up
interests in their business profits. It’s advisable to consider a business saving account since it
offers increased interest rates. Once you successfully opened your business checking account.
You can explore, credit cards, saving accounts, as well as, other financial tools to enhance
financial stability and flexibility.
Finding the Right Bank to Open a Business Checking Account.
As an entrepreneur, you need to manage your business financials effectively. Navigating all
businesses sometimes might be a challenge. Many new business owners are most tempted to use
their accounts for businesses. Having a separate account would also be helpful in tax time. It offers
protection to your assets, in case a legal action might be taken against your business. Some of the
features you might need to consider deciding on the right bank to open your business checking
account.
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Minimum deposits and balances. Check whether the bank requires a certain minimum
deposit to open a business checking account. Assess whether you will meet the monthly or
daily requirements of the minimum account balance required by the bank.
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Check transaction limits. Establish whether the bank you intend to open a business
checking account in limits the number of withdrawal and transfers you can conduct on
monthly basis. Are there any limits on the number of funds you might want to withdraw or
deposit for free before the banks start putting charges.
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Fees. In case a bank may have limits on the amount you transact. Then, your account might
be having cash handling fees. This fee might be up to $0.03 for every additional $100 you
transact. It recommended that you are aware of these fees before deciding on the right bank
to open a business checking account. Other fees may include fees for not maintaining the
required minimum account balance and maintenance fee.
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Online and mobile features. Depending on whether you want to use mobile check
deposits, or manage your finances online. Ensure you check whether you can make wire
transfers online. Most banks have integrated check deposits, as well as, mobile banking.
While other local credit unions may not have put similar levels of technology.
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Location. The location of the bank is an important factor when deciding which can open a
business checking account. This relies on if you prefer using an online bank or visiting the
bank in person. This is a crucial factor to consider especially if you want to create a healthy
relationship with your bank for future purposes. Like pursuing loans, or credit products.
Documents You'll Need to Open A Business Checking Account.
Having a business checking account establishes your business as an independent entity that is
entirely separate from your finances. This is essential for the protection of your assets. Before
opening a business checking account you will need some documents to facilitate the process.
Below are some of the documents you'll need to open a business checking account.

Social security number or an employer identification number. When opening a
business checking account, some banks will allow you to use your social security number.
It is recommended that you have the employer identification number that indicates
businesses’ tax presence. This is a crucial step when trying to acquire credit from the bank.
You can easily apply for an employer identification number online.
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The certificate of assumed name. When opening a business checking account, you might
need a document illustrating the “doing business as” or the DBA name. This is the name
that your established business will be operating under.
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Person identification. A passport or driver’s license might be required to prove that, you
are who you claim to be. It shows your identity.
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Business license. Having a business license obtained from your state or city is also a
requirement. The license should have the owner’s name(your name), as well as, name of
the business.
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A partnership agreement. If your business might be having multiple owners. You might
be needed to produce a founding agreement that clearly states who are the business
partners, as well as, their roles and responsibilities.
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Organizing documents. The requirements for organizing documents might vary from one
state to another. Nonetheless, almost every organizing document will provide information
such as, business name, name of the partners, business address, the management structure,
registered agents; and what kind of business you intend to establish. These documents are
also referred to as, articles of organization, or articles of incorporation.
Once you have attained all the above documents. You can now approach your favorite bank close
to you. Then you can discuss how to open a business checking account with a banker who is
qualified to set up a business checking account for you. Few banks would allow you to begin the
application process online. However, you will be needed to present the above business documents
to the nearest physical branch of the bank to officially open your business checking account.
Note that you will be required to make the minimum initial deposit after finalizing the application
process. Fortunately, business owners now have increasing options for business accounts such as
online accounts. With these online business accounts, you can easily open and operate 100%
digitally. Online businesses such as e-commerce stores do not handle cash at all. This can be the
best option.