
The Most Useful Features of Business Banking Apps
Does your bank's app have features that make your banking processes more efficient? Take a look at our list of the most useful features business banking apps should have today to find out.
The specifics of what you’ll need to open a business checking account will vary based on your company’s legal entity type. In other words, bankers will ask for significantly different documentation from a corporation than they will from someone running a small business as a sole proprietor.
When filling out your application, you will likely be asked to produce a photo ID, your business license and other legal paperwork, and a tax identification number. You’ll also need to have the funds to make your initial deposit into your account once it is opened.
Whether you apply for your business checking account through an online application or in person at your local bank branch, there are specific information categories that you’ll likely be asked for. Business owners should be prepared to provide the following items regardless of the business entity type and structure.
As a security precaution, the bank will want to confirm that you are who you say you are before allowing you to open a business checking account. They may ask for two forms of personal identification, one of which will need to be a government-issued photo ID like a driver’s license or U.S. passport.
Your bank or credit union will compare your ID against your company’s license and incorporation documents to verify that you have the authority to set up accounts on behalf of your business.
Regardless of the type of firm you are running, you will need to show the bank your current business permit. This is a document that confirms your enterprise is operating legally under state and local guidelines.
Your bank or credit union will also use your business permit to confirm your company’s name, address, and industry.
The bank will require the tax identification number you use to manage your business’s taxes. This could be your social security number or Employer Identification Number (EIN) assigned to your company by the Internal Revenue Service (IRS). (You may have a nine-digit EIN if you have employees or are registered as a separate entity.)
If you have business partners who will also be authorized to use the account, those individuals will need to be present when it’s established. Supply the bank with a copy of the agreement that outlines the details and terms of your partnership.
Most banks will expect a cash deposit when your account is initiated. Be prepared with enough money to satisfy your institution’s minimum balance requirement.
Once you have everything to satisfy the general requirements above, you can also prepare by gathering additional documentation that will be needed based on your business type.
A sole proprietorship is the most straightforward business structure. Since there are no employees or partners, and the company taxes are calculated on the business owner’s tax return, your bank may only require:
When operating under an LLP structure, your business will require an EIN and the following documents to open a checking account:
For small business corporations, or S corps., expect the bank to ask for your EIN and the following:
If you set up your business as an LLC, you will need your EIN as well as:
C corps. are the most complex business entities; consequently, setting up bank accounts for these companies will require the most documentation. In addition to your EIN, you can prepare by gathering your:
If you’re considering opening a business checking account, collect the legal documentation needed for your entity type. This will help you streamline the process before reaching out to your bank.
While many businesses function just fine without a business checking account, you may consider opening one if you’re looking to access working capital resources. For example, a business account is required to qualify for the new Revenued Business Card.
This multifaceted card lets you leverage additional purchasing power without impacting your credit.
Find out more about Revenued Card eligibility by contacting us today at +1-877-662-3489. You can also join our waiting list to be first in line when the card application becomes available.
Want to be the first to know when they launch?
Does your bank's app have features that make your banking processes more efficient? Take a look at our list of the most useful features business banking apps should have today to find out.
Credit cards can also help your business develop a credit history, which is important should you want to secure business financing or more favorable credit terms in the future.
Although not nearly as ubiquitous as business checking, business savings accounts are becoming more and more popular among forward-thinking entrepreneurs.
An MCA, short for Merchant Cash Advance, is an agreement between a business owner and an alternative finance company. The business owner agrees to sell a percentage of the company’s future revenue. Additionally, the MCA provider agrees to buy the future income at a discounted rate — essentially “advancing” future revenue to the company. This […]