Business Bank Account & Business Credit

Business Bank Account & Business Credit

You just completed your business plan and now you may be wondering, “How do I open a business bank account?” and "Why do I need a business bank account?" Well, there are many benefits to doing so. Having a business bank account allows you to keep track and write off expenses and keep track of how much money you have coming in each month. You can pay less in fees by establishing a business bank account and build a positive cash flow record for any future opportunities. You will build up a history of your business transactions, if you need to analyze the data to make any business decisions.

Why You Need A Business Bank Account

The most important reason to have a business bank account is that it keeps your business finances separate from personal finances. This is especially important if you are just starting out, and don't have the money to pay for all of the expenses associated with starting a new business. If you didn't create separate accounts, then when your bank statement came in the mail every month, there would be no easy way to tell how much money was spent on personal expenses (like groceries or rent) versus business expenses (like paying for inventory or supplies). When it comes time to file your business taxes, you will have all your transactions organized for your bookkeeper and/or tax accountant.

Another reason why having a business bank account is so important is because it allows you to pay bills online through your financial institution's website. This makes life much easier than trying  to write checks or use cash every month! It's also possible that some vendors may require payment by check rather than credit card.

What to Look for in a Business Bank Account

There are several types of business bank accounts to consider. These include:

  • Online banking. With online banking, you can manage your account from any computer with Internet access. You can also receive notifications of transactions and make transfers between accounts within the same institution or to other financial institutions.

  • Mobile banking. This allows you to access your daily transactions and make transfers while on-the-go using a mobile device such as a smartphone or tablet computer.

  • Business savings account (savings). This account offers higher interest rates than traditional savings accounts but provides less liquidity for withdrawals since funds must be kept in the account for a period of time before being withdrawn at no penalty.

  • Business checking account (checking). Checks written against this type of account may be drawn from any branch location within its network that bears the same name as the bank providing it—for example, Bank XYZ Checking Account—or through ATMs located throughout metropolitan areas around the country where these networks are available; thus they offer more convenience than regular checking services do because customers do not have to travel far distances if they want access their money."

How to Open a Small Business Bank Account Online

Opening a business bank account is important for your business. It's how you'll pay for your supplies and pay the bills. It gives you access to credit, which can help you expand your business and get more customers. There are many benefits that come with opening a small business bank account, but it's not always easy to know where to start. Here are some tips on how to open a small business bank account online or by phone:

Make sure you have all of the necessary paperwork before starting the process - including

  • an Employer Identification Number (EIN),

  • tax ID number and/or Social Security Number for each owner/owner-employee of the company;

  • proof of your principal place of business (if located in another state); proof of residence (if not located at principal place of business);

  • signed authorization form from all owners authorizing acceptance 

  • Name & address information including city/state or zip code along with date of birth so they can verify identity through credit report check

It is so important to keep personal finances separate from business ones

It is so important to keep personal finances separate from business ones.

Why? Because of the following:

  • The tax implications of your personal and business finances mixing together can be disastrous. If you mix them up, you may end up paying more taxes than necessary.

  • It's easier to manage your money when there are clear lines between what belongs to you personally and what belongs to the company. This makes it simpler for both parties involved—the individual or business owner, as well as their accountant or bookkeeper—to track where each dollar went. They'll know exactly how much is left over after taxes have been paid, which means better budgeting practices overall!

Establish Business Credit History 

  • Establish a Net 30 Account

  • Use a credit card to make small purchases. 

  • Pay off monthly.

  • Maintain a good credit rating.

  • Apply for DUNN number.

Business credit cards are good for business and personal use, as well as emergencies and travel expenses. I have listed a few resources at the end. 

It's important to have a business bank account and credit card if you want to be successful. If you're looking for an easy way to open one, I have listed a few below. They offer all kinds of business services including Net 30, checking accounts, savings accounts, and credit cards that can help grow your small business or startup.

Capital One 360 Checking/Savings 

Capital One Credit

Uline - Net 30

DUNN Number  

Capital on TAP 

Self Lender - Savings Loan

Kickoff Credit

Petal Card

Digital Federal Credit Union

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