as promised via IG, over the next 5 weeks you can expect an in depth breakdown of my 5 key elements to launching/starting your own biz! last week we covered the importance of acquiring & using FREE marketing tools, take a read! this week i am covering the importance of opening a biz bank account. for anyone starting a biz, this is knowledge is essential.
let's talk money! and how to set yourself up for financial success from day one.
BENEFITS OF BIZ BANK ACCOUNT:
biz records & finances stay organized
accurate taxes and deductions
you can accept credit card payments
build professional relationship with bank
opportunities to grow your biz
help save for your biz
avoid personal spending via biz revenue/profit
protects your liability
IN ORDER TO OPEN A BIZ ACCOUNT:
Social Security number (SSN)
Employer Identification Number (EIN)
Business license
Business name
DBA namE
Organizing documents (e.g., Articles of Organization)
what you might need based on your business structure:
sole proprietorships
SSN or EIN
business license or business name filing document (e.g., DBA name)
partnerships
EIN
partnership agreement
business name filing document (e.g., DBA form)
LLCs
SSN or EIN
articles of organization
corporations
EIN
articles of incorporation
THINGS TO CONSIDER BEFORE OPENING A BIZ ACCOUT:
choose your banking institution
look for low maintenance fees
look for low minimum deposit & balance requirements
seek high deposit & transaction offerings
ask about sign -up bonuses
have your documents prepared and ready
understand if you need to open the account in person or online
make sure all your account information is accurate
FAQ:
do i need to have revenue to open a business bank account?
nope! you do not need to be making money to open a business checking account. frankly, opening a separate account for your business should be one of the first things you do.
can i use my personal checking account for business if i a sole proprietor?
as a sole proprietor, you're not legally required to use a business checking account. BUT, using a personal checking account is not advisable for sole proprietors.
can i use my personal checking account for business if i have an LLC or a corporation?
if you operate your business under a legal entity that is separate from you (LLC or corporation) you are legally required to separate your company's finances from your personal finances. using a personal bank account for your business transactions can invalidate any limited liability you receive through the legal entity.
i have been keeping a BIG secret! stay tuned, something BIG is coming to TF! i will be announcing next weeeeeeek, ah. TF members will be the first to know, so be sure you are subscribed!
i hope this helped inspire you & educate you on what is needed to open a biz bank account. if you would like to set up a in depth biz consult with me or connect on how we can work together, contact me! a list of my services can be found under the hire me tab, here. i take clients virtually or in person!
leave me a comment if you enjoy content like this! next week is the last of this series! i will be covering how to identify your dream client/consumer.
XOXO,
