Opening a business checking account is one of the most important things an entrepreneur can do for the business. This not only provides a secure way to receive payments and pay bills, but also gives the business owner a method of separating personal money from business matters. A free business checking account is a practical choice for small businesses that do not have many banking transactions, but still want an account for the company.
Items Needed for a Business Checking Account
A few items are needed in order to open a business checking account. First and foremost, every business owner will need to register the business with the local and state government. This verifies that the business is legitimate and provides the bank proof of ownership and the address of the business. In addition, the business owner will also need an Employee Identification Number, which is provided by the Internal Revenue Service. If the business is a sole proprietorship, this is simply the social security number of the sole proprietor.
Finding the Right Account
Finding the right free business checking account includes ensuring the company will receive all the features and services needed for the account. The most typical features needed in a business checking account include free online banking so businesses can stay abreast of current balances and a debit card with the company’s name for tax-deductible purchases. In addition, depending on the business, the ability to make coin and cash deposits is also a great feature to have in case the business is collecting large amounts of this type of payment.
Fees, Minimums, and Transactions
When selecting a free business checking account, the business owner also wants to look at fees, minimums, and transaction limits. Even though the checking account is free, if these factors are not adhered to, the business owner can incur fees and lose money due to this. Try selecting an account that has a no minimum balance requirements and no maintenance fees. In addition, the bank should allow a high number of transactions and permit unlimited use of the ATMS, as cash flow is often unpredictable in new and small businesses.
Minimal Deposit and Other Perks
A free business checking account should allow business owners to set up the account with a minimal deposit. Most of them have deposit amounts ranging from $5 to $100. These low amounts allow the business owner to get started with the account without having to have a great deal of money in the beginning. One other perk of opening a business checking account is developing a banking relationship with a financial institution. This can help the business owner when loans, savings, and other investment products are needed for the business.
A checking account is an essential tool for any small or new business. A business account will allow business owners to track expenses of the company more proficiently as well as create a partnership between the business and financial institution. Finding a checking account with minimal fees, deposit minimums, and no maintenance fee is key to finding the best bank solution for a business.