How to Set Up a Business Account at the Bank

Contributor

By eHow Contributing Writer

Article Rating:

(28 Ratings)

Getting a business checking account will help you track income and expenses and prevent intermingling with your personal accounts.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

Checkbook Wallets
Calculators
File Cabinets
Banks
Checking Accounts
File Folders
Calculators

Determining Your Business Checking Needs

Step 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.
Step 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.
Step 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.
Step 4

Determine how much cash you deposit and withdraw each month.
Step 5

Examine your last statement to see the minimum and average balances you usually maintain.
Step 6

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.

Signing Up for the Account

Step 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.
Step 2

Provide a taxpayer ID number to open the account regardless of ownership structure.
Step 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.
Step 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.
Step 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.

Comments

KuanShiYin said

Flag This Comment

on 2/19/2009 Great; thanks.

zemzem82 said

on 1/26/2009 My business account is tied to my paypal and its great -zemzem.ecrater.com

on 3/28/2007 I completely agree with this comment. It seems that it applies to everyone except the last part needing an EIN for nonprofit organization. Do you need all (3) items for a nonprofit organization or just the last?

Anonymous said

on 11/22/2005 Your final point on this page is, I feel, unclear:

"Submit, [you say] 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."

This certainly makes these steps sound compulsory, although certainly only the EIN can be compulsory. You should insert the phrase "if applicable." One never knows what level of knowledge the reader of a "How to..." article may have already, experienced or clueless.