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Did you know that a business bank account is an easy way of building business credit and letting your suppliers, vendors, and partners know that you are serious about your business? If you are just starting out in business, you might think that having a business bank account isn’t that important.
But it’s better to open an account right away, so you build good business habits from the get-go. Keep reading to find out how to set up a business bank account.
Choose a Bank With Which to Set up a Business Bank Account
Too many business owners default to opening up a business bank account with their current bank. Yes, it is easier to have all your accounts settled in one bank, so you don’t have to log in into two separate banks to check everything.
But, what if you end up getting a better deal or more options when you set up a business bank account in another bank? That’s why it’s a good idea to shop around a bit. You don’t want to get into analysis-paralysis, but look at at least 3-4 options before deciding on one.
Here are some questions you can ask your potential banks to help you make your decision.
What Kind of Business Bank Account Will You Open?
There are several kinds of business bank accounts you could potentially open.
- Business checking accounts – best for everyday usage
- Business savings accounts – best for long-term savings
- Merchant accounts – best for accepting debit and credit card payments
Depending on your needs, you might have all three of these business bank accounts.
Get All Your Documents Together
There are several documents you need to put together to open up a bank account. These are the usual ones:
- Personal identification documents
- Business identification number
- Business details (type of business, etc.)
- Any agreements related to how your business is set up
Once you have all these documents at hand, you are ready to go to your bank representative and open up a business bank account.
Have Your Initial Deposit Ready
Some banks will require you to have an initial deposit to open up a business bank account. Although most will be fine without an initial deposit, some banks can require you to have a deposit from $5 to $1000. The more services and features your bank offers, the higher the initial deposit will be.
How to Set up a Business Bank Account 101
Setting up a business bank account is almost as easy as opening up a personal one nowadays, since entrepreneurship has become more popular and ubiquitous. Follow the steps laid out above on how to set up a business bank account, and you are well on your way.
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