Opening a business bank account will make tracking your expenses much easier. It’s worth shopping around to see which banks offer any perks for small business owners. When you are ready to open your account, gather the required information and sign up in person or online.
# 1 Get Your Tax ID
Banks require a business ID to open a bank account. In the U.S. it is necessary to have an Employer Identification Number (EIN) from the IRS. Sole proprietors, on the other hand, can use their Social Security Number as a tax ID, most banks require an EIN.
# 2 Get Your Business Licensed
A bank will also need to see your business license. In the UK this is supplied by Companies House. In other countries contact your local or state government office to find out how to get it. Normally you will have to pay a small fee.
#3 Make Copies of All Your Legal Documents
After your business has been approved and registered you should will receive documents of confirmation. These will include company details such as registration numbers, a list of directors and a list of shareholders.
These documents will be required by the bank to show who will be authorised to use the business account.
Below is a list of relevant documents that you will need to open a bank account:
- A partnership agreement : should contain business name and details of all partners.
- A limited liability company : should have a corporate resolution with a list of authorised signers.
- A corporation : should have a corporate resolution identifing the authorised signers.
Identification for all signatories with access to the account is also a pre-requisite. These can be in the form of a National ID, a Passport or Driving License.
#4 Collect Proof of Your Business Name
The bank will probably want to see this document especially if your business operates under an assumed name. This will come in the form of a document sent by the relevant business registration authority (as outlined in #2 above).
#5 Get Proof of Your Business Address
A bank will need a proof of business address. Generally, a copy of a utility bill will be sufficient. If you already have a personal account with the bank of choice then that too will suffice.