Five Tips for Opening Your First Business Checking Account

Opening a business account is a big step. You're moving from working on something that's a hobby or dream to becoming a legitimate company, with its own business checking account.   

When approaching a bank for your first business checking account, here are five top tips to make sure the process goes smoothly.   

Research Banks  

It's easy to go back to a bank you already know and have some history with. It also helps a little if they have some background information on you and can see you spend within your means, pay back loans on time, and so forth. But it's also possible to start somewhere completely fresh. Take a look at where your local banks are and if you need a physical bank nearby. Do you need the latest and greatest banking app instead? Do they offer services you might need in the future like small business loans? Look at what each bank offers and decide what's right for you.  

Research Account Types  

It's time to get an account, but what type of account do you need? Do you need more than one?   

It's really important to look at the types of options you have before going to the bank so that you aren't swayed by an offer or tied to fees and optional extras that you don't need yet. Know what you need and what you need it for. Decide in advance if you want a business savings account as well as a business checking account.   

Look at the Fees  

Each bank will have different fees for different products and services for the different types of accounts. It's important to know the fees and whether this is something you have budgeted for. If you haven't, you may need to look at the free or very low-cost business checking accounts. If you're looking for more than just a basic account, for a small extra fee you could have a lot of extra perks that you won't need to pay separately for.   

Have your Identity Ready  

When opening an account you need to have your identity ready. A business checking account is no different. You will need to prove who you are and that your business is legitimate. Different types of businesses will need to have different types of proof to be able to open an account so make sure you research this before you go to the bank to open the account.   

Start Depositing!

Your account will be a huge helper in the future to prove your incomings and outgoings. The sooner you start depositing and using the account, the sooner easy records will be available for you. Should you want a loan in the future, your account will say a lot to the bank about affordability.