Documents Required for Opening a Business Bank Account
Opening a business bank account is imperative to operate your business effectively. Business bank accounts help keep personal and business accounting separate while helping the business establish a financial history. Establishing a financial history is important if your business ever needs to apply for a loan or line of credit. When opening a business bank account, make sure you have the right documents to expedite the process.
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Tax Identification
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When you open any bank account, you must establish the account with a tax identification number. For a business this number may be your personal Social Security number or it may be the federal tax identification number otherwise known as an employer identification number (EIN). If your company is a sole proprietorship, then you will use your social security number. If it is an LLC or corporation, you should have a tax identification number specific for the company. You need to have this number when you open the account and the letter from the IRS that states your EIN.
Business Entity Information
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The name of your business and what type of entity it is is important when opening a business bank account. Your account name will have to be exactly as your business is named. If you are operating under a sole proprietorship that is "doing business as" another name, make sure to bring your fictitious name statement that you received when you filed for it at the county clerk or secretary of state. For other entities bring your articles of incorporation or limited liability establishment paperwork. Your bank consultant will need to verify the information as being correct.
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Authorized Signers
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A small organization with one or two owners may not need more than the articles of incorporation to establish who is an authorized signer on the account. However, to be official, there should be a list of the current board, treasurers or other signers to the bank account. This will need to be established in your articles of incorporation as to what position(s) have signatory ability and verified with initial or subsequent business meeting minutes.
Identification
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Anyone who is a signature on a bank account must provide two forms of identification when opening an account or being added to the account signer list. Suitable identification may include a driver's license, passport, credit card or ATM card. These must be current and have a signature on them as well. You will be asked to sign signature cards so the bank can verify signatures should there be any question about transactions and possible fraud.
Deposits
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A bank account must be established with a minimum deposit. Check with your bank consultant about what business account is best for you and your company. Many financial institutions require that business accounts maintain minimum balances, often in the amount of $5,000 or more. If minimum balances are a problem because you are a new entity, shop around to find something that works with new and small businesses. Also check on the number of transactions you are allowed to make every month to include deposits, withdrawals and merchant transactions if any. Understand how your account will get charged before you make a deposit and commit to the new account.
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