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How to Set Up a Business Account at the Bank

Determining Your Business Checking Needs

Steps:

1. Establish how your business is owned. Is it a sole proprietorship, partnership, corporation or nonprofit? You’ll find that certain accounts are more suitable to your needs depending on how your business is structured.
2. Figure out the number of deposits you normally make each week or month. A low-cost, basic plan may suit your needs if you make only a couple of deposits a week.
3. Look at your last statement and calculate how many checks you usually write each week or month. A basic plan typically has limited check-writing privileges.
4. Determine how much cash you deposit and withdraw each month.Examine your last statement to see the minimum and average balances you usually maintain.
5. Decide if you want to do all of your transactions via ATM, the night depository or online. Do you prefer to do all of your banking in person? Banks usually charge higher fees for in-person banking.

Tips:

• Find a reputable bank that you’ve done prior business with. This could be the institution where you keep your personal accounts.
• Select a bank that’s conveniently located and easily accessible.

Warnings:

• Be sure to take the time to choose the most appropriate account for your business. Picking the wrong one could cause you to pay an unnecessarily high amount in bank fees.

Signing Up for the Account

Steps:

1. Have the right documentation with you. All banks will require you to prove that you are a business. Eligibility requirements and the required documentation to open a business checking account vary by ownership type.
2. Provide a taxpayer ID number to open the account regardless of ownership structure.
3. Provide a certified copy of the fictitious name certificate if you are a sole proprietor and the account title is a business name other than yours. You must put your signature on file and you may authorize additional people to sign checks.
4. Provide a certified copy of the fictitious name certificate for any business whose account titles are different from the names of the owners. Place on file with the bank the signatures of those who will be granted access to the account. Each signer must provide two current pieces of identification that include the signer’s signature.
5. Submit, in addition to the above information, a copy of the IRS Ruling on Tax Exemption, a statement on corporation letterhead indicating the corporation’s tax-exempt status, and an employer identification number (EIN) for a nonprofit organization.

Finance 2005-11-04 Home Business Tips