Business banking goes hand-in-hand with running a business, since the success of a small or large business depends so much on how financially profitable it is.
Day to day, business owners need to stay on top of their revenues, dividends, overhead expenses, employee benefits, taxes, and their good standing and credibility with vendors, customers and creditors, among others. With those things in mind, what’s the most basic banking product that every business owner needs as a start?
A personal checking account is one of the cornerstones of financial planning. So is a business checking account – it’s an essential tool every business needs. The self-employed contractor to the CEO of a large corporation should open up a free business checking account to meet their daily financial needs, plus, for all the benefits tailored for businesses not included in a standard personal checking product.
Personal checking accounts often place limits on the maximum amount of withdrawals a customer can make per week or month.
Business checking accounts have lower limitations, designed to accommodate businesses which anticipate a sizable volume of transactions and cash flow on a regular basis.
Business checking accounts make financial responsibilities like tax prep much easier (the IRS forbids personal and business taxes to mix).
Additionally, it improves visibility: a business’ name and address are listed on checks payable. Businesses must also obtain their unique Employer ID number (EIN) before opening a checking account.
Many business checking accounts may include bonuses to help businesses more easily streamline their operations, like payroll services, help seeking out a small business loan, and the option for owners to give employees access to the account.
Dividends aren’t just for personal checking. With most business checking accounts, company owners can tap into accruing interest to help accelerate the growth of a small corporation.
Proprietors of businesses large and small can make the best decision on a checking account with the most information at hand.
Who can open a business checking account? Anyone from LLCs, LLPs, independent contractors and nonprofits and more. If you already do business with a bank or credit union you trust, even better.
Consult with them to see what kinds of business banking options they may have to offer. Opening an account takes just a few simple steps:
Making a checking account comparison can be easy when it’s clear what a checking account can do for you and your business. When a business is thriving and profitable, the most important step is finding a way to manage your money through one of the many business checking accounts on the market today.