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· 18 Aug 2022

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What I Need To Open A Business Bank Account

A Business savings account helps streamline the company's finances professionally while keeping them aside from the family finances.

It takes more effort to establish a corporate bank account than to activate a private account. Certificates must be gathered, names must be ascertained, and authorizations must be obtained.

Discover how it is that you must have a corporate bank account and how to open one.

The following are the different types of business accounts.

Types Of Business Bank Account.
There are about 4 common types of business account which includes the following:


•    Business Checking account: this is used for controlling payroll and expenditures that keep the company functioning.


•    Saving account: A business saving account is necessary for addition to a business checking account because it helps in saving earnings.


•    Merchant account: A business merchant account is set up by a few banks, it is important one confirms from the bank before one embarks on it.


•    Credit card account: A business credit card can be used for emergencies or miscellaneous items for the business.

Documents Required To Operate A Business Bank Account.
Before a business bank account can be open the documents are needed


1.    Article of Incorporation:  the Article Of Incorporation state the structure or system of the business. This document is used also in the state and other sectors during the business registration.


2.    Business license: the business license is the legal proof that the business owner has the legal right to carry out business in the region.


3.    Doing Business as (DBA) certificate: This is often referred to as an imaginary name.
It allows one to perform businesses like
•    Marketing and advertising or
•    Accepting money under a separate name that differs from the business name.


4.    Employers Identify Number (EIN): for the sole proprietors, the following is needed.
•    Social security number.
•    Drivers license or passport.
it used for the following reasons
•    To prevent identity theft.
•    Fraud and money laundering
•    Overseeing taxes
•    Employees payment.


5.    Identification document: the identification document is any means if the owner has been identified. It can be any government-issued picture identification, it can be either of the following:
•    Drivers license
•    Passport et al

Factors To Consider Before Choosing A Bank For Business Account.

The following should be considered
•    Fees: each bank has a different fee pattern and aspects


•    Sign-up bonuses: must time, banks offer bonuses for operating a business account with them.


•    Account maintenance requirements: Business accounts have specific criteria which are to be meant or a penalty will be charged.


•    Features: when considering a bank to operate a business account, consider the compulsory items for each bank.

Important If A Business Bank Account.
The importance of a business account can not be overlooked, they are as follows
•    Limited Liability protection: business accounts help to segregate business and individual funds which leads to restricting private liability.


•    Purchase and protection of customers: business accounts help the customer's personal information.


•    Professional: business account makes it easy for customers to pay with credit cards and other means.


•    Credit option: when one has a business account, most banks make credit card options available make help the business in case of an emergency fund is crucial.
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