You might be running a brick-and-mortar shop. Maybe those weekend music gigs bring in real money. Or perhaps your online craft store is taking off. From traditional small businesses to smaller side projects, managing finances is a critical component of your success.
Business banking can help you manage the financial aspects of your company in ways a personal checking account just can’t. And with better business management comes more efficient growth.
First, let’s explore the essentials to understand a fundamental question: What is a business banking account?
What is a business account, and why should you have one?
A business account is a bank account specifically used to manage company finances. Having a separate business banking account has helped many small businesses operate more efficiently by separating their personal and business finances. In addition, a business account is an asset that can help you make more money in the long run—providing a solid foundation from the beginning of your business.
What are the benefits of having a business account for my company?
Whatever the size of a small business, the question is often the same: “Can I use a personal checking account for business banking?” The answer is: Sometimes. But it can cause issues in the future.
A separate business account can help you make smart business decisions, manage your income, write business checks, and build credibility and professionalism with customers. It also lets you:
· Save money.
· Protect your savings.
· Build business credit.
· Hold emergency savings funds, save effort at tax time, and earn interest.
Many banks have special offers for business accounts—with benefits like free banking, low-cost transactions, even competitive interest rates. Specific benefits of business checking and savings accounts can vary by account type, but opening a business checking account usually allows you to:
· Accept deposits
· Pay business-related expenses
· Keep clean records of your costs
· Establish a limited company or partnership, which legally requires a separate business account
Any type of business can benefit from a business banking account, especially when you open both a business checking and saving account. This can help increase the value of your business and let you operate with greater convenience—from easier payments and deposits to building loyal customers.
Greater Alliance FCU makes business banking easy and straightforward. With our business checking and savings accounts, it’s never been simpler to track your company’s finances.
How to open a business checking or savings account
Before you open an account, you’ll need to register your business with the state and have a Tax ID Number. This will provide you with the legal documentation you need to get started with business banking.
Research requirements and gather legal and business documents early to save time. Some banks make this information available online. Others require a phone call.
The best local business banking organizations help you set up your business accounts, hassle free. With Greater Alliance’s convenient features and exceptional customer service, opening a business bank account brings far more benefits for your business than disadvantages.
When you search for, “business banking accounts near me,” keep in mind the requirements for opening a business banking account will vary between banks. However, all banks require some essential documents. These may include:
A government-issued ID such as a driver’s license or passport will be required to confirm your identity.
Business Address Documents
Depending on the business, it may be illegal to operate from your own home. The bank will need to know where your company operates, whether from home or a separate location. A bill or a letter from the state addressed to the business should suffice for opening your account.
DBA Name Registration
Expect any bank to require a copy of your business’s registration with the state.
Employment Identification Number (EIN) or Tax Identification Number
After registering your business, you should receive an EIN, which is a unique nine-digit number. Every business, regardless of its size, requires an EIN for managing business taxes and other records.
Legal Incorporation Documents
The bank will accept legal incorporation documents as long as your business is established according to the secretary of state’s office regulations.
You may want to set up a business account that provides access for other individuals. If you plan to have multiple people on the account, these individuals will need to come to the bank with valid identification.
Projected Cash Flow
It’s essential to provide an estimate of your business cash flow. It’s better to include as many details as possible, regardless of low or high bank balances.
Why should I open a local business banking account?
When you choose a local business banking account at Greater Alliance, you receive higher savings rates than rates offered by for-profit banks. To open a business checking account, a minimum balance of $100 is required to qualify for no monthly maintenance charge. In addition, Greater Alliance offers interest on business checking accounts—with just a $2,500 balance.
You can start your business savings accounts with just $100 and earn interest at $500. In addition, Greater Alliance savings accounts can act as overdraft protection for your business checking account.
With unlimited ATM transactions each month, plus digital banking services and nearly 85,000 fee-free ATMs, Greater Alliance takes the stress out of business banking.
Start your business bank account today
Ready to see how that “business banking account near me” can help your business succeed? Greater Alliance FCU offers one of the best business banking accounts, including multiple services tailored to help your business grow. Low minimum balances and convenient mobile banking will help make business banking more accessible and manageable, whether you need a business checking, savings account or both. Visit Greater Alliance today to learn more about how your business can benefit.