So you’ve decided to open a business! That is fantastic. You can collect cash and collect credit card payments easily. But what about setting up a business bank account so customers can write checks to your business name? Today’s blog will focus on how to set-up a business bank account and what type of bank to use.
If you are starting your business, you will have to file a business name with the state. You can be a Coporation, LLC, and many other different entities. There are pros and cons to each type of a business entity you set up so if you are unsure of how you want to register, you should speak to a tax accountant and/or business lawyer. Once you register with the state, (You can do so at Www.SunBiz.org in FL), You will have to wait 24-48 hours for your application to be approved!
Now that you have your business name, you can go to www.IRS.Gov and get your EIN number. Your EIN number is similar to your Social Security number. The only difference is that your EIN number represents your business and your social security number represents you personally.
Finally, its time to go find a bank! I would HIGHLY RECOMMEND using a local bank as opposed to a big chain bank. Many of the big chain banks charge you to set up a business account and will penalize you each month if you do not maintain a certain balance in your account! A local bank will give you more personal attention and many of them offer FREE business accounts. Bring all of the information in the first two steps to the bank and meet with an account representative. Its a good idea to print it up directly from the site as opposed to writing it down freehand. The Bank should be able to have your account up and running fairly quick and even mail you your first checks FREE. (Another reason while its a good idea to use a Small local bank). I recently opened up a bank account at C1 Bank and have a positive experience every time I do a transaction. In Fact, C1 bank is currently running a promotion and will give you $25 to start an account and $5 per month for a year if you have one direct deposit going into your account per month! Plus, you can get a nice Starbucks coffee for FREE while you are in there too! Now that is some excellent incentive! If you are in Florida, I highly recommend checking out C1 Bank. If you re in a different area, Google small local banks in your area and find one which offers FREE business accounts and incentives that work for you! Thanks for reading