When starting your business, it’s critical that you separate your business funds from your personal funds. You should talk to your bank about opening a business account that’s geared specifically for commercial purposes.
- For incorporated businesses, it is legally required for you to have a bank account.
- Keeping track of your earnings, expenses, and taxes is much easier if you separate your finances.
- Being able to separate your personal assets and the businesses’ assets reduces your liability and protects your assets in case your business faces legal trouble.
- It keeps you legal & compliant.
Collect the right Documentation:
After choosing the bank that’s right for you, make sure to physically go to the nearest branch. Most banks require a few things to open your business account such as:
- Driver’s license and another form of identification (can be a passport or a credit card with your name)
- Employer Identification Number (EIN) or your Social Security number if you chose sole proprietorship
- The business’ formation documents
- Ownership agreements
- Business license