If you run a business, you really should have a business banking account.
The reasons are simple:
- Your customers will be able to pay you with credit cards, debit cards or checks.
- Business banking offers limited personal liability protection by keeping your business and personal funds separate.
- There are features to protect customer purchases and their personal information.
- You’ll be able to set up employee access to perform banking duties with online banking.
- Lines of credit and credit card accounts can help you with business purchases.
When you’re ready to open a business account, be sure to have the right documents ready and ask about what services are available and any fees to expect.
Documents required can vary, so check with your financial institution about what they will need. Generally, you’ll likely need:
- Your business license.
- An Employer Identification Number.
- Business formation documents.
- Ownership agreements.
When considering your account needs, ask about checking and saving offerings, a credit card account, and merchant services accounts.
You’ll want to be able to accept and make payments and have that money deposited into your accounts, which you can then closely monitor and control via online or mobile banking. Merchant services accounts and a payment processor will enable in-person and online card payments, which have become so important to business success.
Be sure to ask your financial institution about any fees and rates associated with the account services you select. These can include:
- Interest rates for savings and checking accounts.
- Interest rates on lines of credit.
- Transaction fees and limits, and whether any can be waived.
- Minimum balance fees.
- Merchant account fees and rates on processed transactions.
Set up an appointment with your financial institution to learn about the advantages of business banking.