Tips for setting up your small business bank account

It is very often observed that handling the finance of a business from the place of work, whether it is small or large after a certain point is a tedious job. When it is a small business like a startup, it is an especially difficult task to keep records of fund management, income, tax expense, and many other factors.

About small business bank accounts

For easy-going transactions among the employee and employers and for tracking records of cash transfers, banks provide us with a facility for small business bank accounts.

  • Choose your bank
    Your personal bank might not fit into the facilities given to the business accounts. So compare the interest rates and facilities given by different banks and set up your account in the most reasonable. Some banks may provide you with setting up a business account online from home and some might not. Check all key points and choose wisely your bank as in future with growing your business, your bank should evolve with it.
  • Type of accounts
    Be sure of the number of accounts and its type because the management of a single account for taxes, payroll and fund will become hard especially when taxes are due. It is better to choose a different account for different sections of cash management.
  • Get your business name
    Before opening a small business bank account, obtain a business name on which you need to do the work. Check the availability of that name online and also with the help of U.S. Patent and Trademark office’s search tool. To protect your name from any type of violation, obtain a trademark license in your name.
  • Get your paperwork done
    Before setting up a small business bank account, be sure to keep your important papers handy. If you are the sole proprietor of the U.S., then the bank will ask you your social security number and a tax ID compared to a corporation which will have to show articles of the company.
  • Accept the payments
    Now that you have chosen your bank grabbed your business name and submitted your papers to the bank and the bank opened your account, open a merchant account for accepting payments. If your business anticipates a large number of online transactions, credit card merchant accounts are the best option.

By the end of this, you now know and must remember these tips while opening a small business bank account.

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