One of the first things that you should do after establishing a venture or becoming an entrepreneur is having to Open a Checking Account denver co. Since your startup or newly-established enterprise has its own distinct tax and legal identity, setting up a business checking account enables you to carry out transactions in your company’s name. A business banking account is an opportunity for your company to build a strong and lasting relationship with A BANKER and A BANK, which will pay dividends in the future as your business grows and needs additional services and funding.

A business checking account comes in handy not only for keeping your company’s finances separate from your personal funds, but it also enables you to manage those business funds more effectively. Opening a bank account in your company’s name is a bit more involved when compared with setting up a personal checking or savings account. This article guides you on the benefits of having a business bank account and the documents you’ll need for opening one.

What Will You Need to Submit to the Bank for Opening a Business Account?

Documents Substantiating Your Identity

Of all the documents that your bank will ask for when opening a business bank account, a personal identification document is the most important. You can provide your bank with a copy of your passport, driver’s license, or other government-issued photo ID to help ensure you are actually an owner of the business.

SSN (Social Security Number) or EIN (Employer Identification Number)

Generally speaking, the majority of banks will ask you to provide your Employer Identification Number (EIN) before they will allow you to open your business bank account. However, if you’re a sole proprietor, you can use your Social Security Number (SSN) to conduct business. You can always apply for an EIN (in case you don’t have one yet) and receive one free of cost by completing an application on the IRS’s website. This being said, you will need to possess a valid or legal SSN before applying for an EIN.

Valid Business License

The bank may also ask you to provide proof that you have a business license.  This will depend on the bank, and also on the industry/type of business you are operating. Many types of businesses require licenses, issued by your state of residence, in order to operate. There are also many kinds of businesses that do not require business licenses to operate.  You’ll want to check with your local, county, and state government to see if a license is required for your type of business. If it is, then you will want this on-hand while opening your business checking account, as the bank will likely ask for a copy.

Ownership Contract

If you’re running a corporation, limited liability company (LLC), or a partnership firm you’ll have to submit copies of your Articles of Incorporation. Your Articles of Incorporation is the core document containing details about the firm’s constitution or incorporation.  

Credit Card Revenue Details

For the vast majority of businesses, your customers or clients will likely choose to pay via a debit or credit card. So it follows that if you want to receive card payments, you’ll have to set up a merchant services account. Simply put, a merchant services account (distinct from your business bank account) enables your bank to process card transactions and credit the proceeds to your business bank account.

To facilitate your bank being able to process transactions via a merchant services account, you’ll need to give details of your monthly credit card revenues. In the case that your business has just launched, and you’ve just started business operations, then you can just provide an estimate of your monthly credit card transactions that you project you will process.

DBA (Doing Business As) Certificate

If you want to promote your business under a name that is different from your company’s official name, also known as a trade name, then you’ll need to file a DBA with your local tax authority. Also called a “doing-business-as” name, a DBA filing allows you to register your trade name legally in your state, and also provides you with a trade name certificate, to prove it has been filed. If you will be receiving payments under the trade name, then you will want to submit your DBA/trade name certification with your business bank, so it is associated with your business checking/savings accounts.

Benefits of Setting-Up a Business Bank Account 

• Comes in handy for filing your taxes and maintaining transparency in business operations and dealings
• Helps protect your funds and savings
• Allows you to accept payments made via credit or debit cards
• Lends your enterprise or firm professional credibility
• Company finances or funds can be accessed by business partners or associates

Conclusion

Having or opening a business checking account is indispensable if you want to manage your business professionally and give it the required financial tools to grow. Before you proceed with opening one, compare offers from multiple banks to determine the one that best syncs with your business needs and preferences.