Starting a business is exciting! Being your own boss, setting your own work schedule, and fulfilling your passion may feel like a dream come true. But one thing that should not be overlooked is the financial aspect of running your business. The key step that most new business owners overlook is separating their personal and business financials.
One way to avoid this is by opening a business bank account for your small business. When running a business you’ll need to pay vendors, hire contractors, buy supplies, purchase equipment and pay for other business-related expenses. Having a dedicated business bank account is essential for separating your business and personal finances, and will help keep things organized.
How do you go about opening a bank account for your business? Well first, you’ll need to choose the right bank for your business. There is a lot to consider, there are a lot of different business bank accounts to choose from. You could go traditional and choose a brick-and-mortar bank or opt for a digital-only bank if that’s more convenient for you and your small business. For freelancers and other entrepreneurs, there are even online banks that cater specifically to you.
Here some key questions you may want to ask yourself before you open your new business bank account:
- Do you need to make a minimum opening deposit?
- Will you need to maintain a minimum balance?
- Does the bank offer good interest rates on savings accounts?
- What fees exist?
- How is their customer service? Do they have customer representatives available to help 24/7?
- How many physical branches are there? Is there one near you?
- Do they also offer credit cards or lines of credit to businesses if you need one?
- If it’s an online-only bank, can you use checks? Which ATMs can you withdraw money from? How do you submit payments?
- How many deposits and transfers do you get free each month?
This may seem like a lot of questions, but each one is so important. Our infographic will walk you through everything you need to know about opening a bank account for your business. We also included best practices and other considerations to help your business thrive.