How to Start Your Business Checking Account
By Gary Pearson | September 20, 2008
Arranging business checks is as simple as a trip to the bank. Everyone who is starting a business should open a business checking account and use business checks to pay all expenses and bills relating to their business. This keeps personal finances separate from business finances and makes tax time a lot easier to handle.
Starting a business checking account with a bank is not difficult. First of all, you have to file a DBA with your county - this is a "Doing Business As" form, which is necessary for the bank to process your business checking account. The name you have registered the business under should be neither your first name nor your last name. Charges for filing this form depends on which county you are in.
The amount required to open a business account is also much higher than the amount to open a personal account. Check with several banks in your area to see what amount they require, what fees they charge and what services they provide. Fees to obtain business checks may be tax-deductible, so keep track and check with your accountant.
Make sure you know what kind of fees you will be charged, according to checks that are paid. Earning interest is not realistic with a business checking account, either. You will also have to find out what the minimum balance you need is - falling below it might mean that you will be charged a fee of some sort.
Record all business checks as you write them to prevent overdrawing your business account. A good beginning will allow you to develop a good relationship with your bank. This relationship will grow as your business grows.
Topics: Home & Family |
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