How to Build Your Business Part 4 - Opening Business Bank Accounts

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