Opening Your First Business Checking Account
Business checking accounts are important financial tools for business owners.
If you’ve already found the best business checking account for your business, the following are the next steps you can take to open your first business checking account:
- Obtain Federal Tax Identification Number. A tax I.D. number, also known as an Employer Identification Number (EIN), is like a social security number for a business. It is used by the government and financial institutions to identify your business as a separate entity. Except for special circumstances, like self-employment, you will have to show your business’s EIN before opening a business checking account.
- Gather Needed Documents. Specific requirements vary, but you will need to present documentation relating to your business before you can open a business checking account such as a business license and proof of address. Depending upon the type of business you own, certain legal documents are required. For instance, a Limited Liability Partnership must show the partnership agreement.
- Know the Terms. Choosing the right checking account for your business is no easy task. Before you sign the dotted line, be sure you understand all the terms and conditions of your business checking account thoroughly.
- Complete Application. Once you have done all of the necessary preparation, the rest of the application process is fairly simple. Be sure to complete your application carefully and have a deposit ready to fund your account.