Step 8. Business Bank Account

Having a separate checking account for your business helps in establishing its validity. This validity is needed when it comes to dealing with the IRS. With personal and business accounts separate, there is no risk of mixing or commingling funds. Separating your business funds from personal is always a great move. Your business can stand alone when it comes time for lenders to inspect its cash flows. Having a separate business account makes your accounting easier to manage and track expenses for tax purposes. As well, you’ll need a business checking account when opening a business credit card account.

Opening A Business Checking Account

Proper setup of the bank account is crucial if you are going to utilize all forms of credit. Most lenders will want to know the age of your business, and they will determine this by the date when the business’ bank account was set up, as well as the dates on paperwork for incorporation and the tax ID. However, these dates are not nearly as important as the date of the bank account. When lenders want to know the age of your business, this is the date they will primarily consider. As far as they are concerned, your business started when the business bank account was opened.

  • To Do 1 – Create Your Bank Account

    You may be tempted to open your account with the nearest bank location, but take your time and make a decision that works best for you and your business. Be sure to ask about specific requirements for opening a business checking account. You will likely need to provide a business certificate from the Secretary of State office, IRS documentation for the EIN, and documents of incorporation. Having one bank that can provide business checking and loan options can be a great convenience. It might even make getting a business loan easier, since the bank can easily access your business checking account and will know your business history.

    Click here for a special offer from Bank of America® when applying to open an online business checking account. If you need to order business checks for your business Delux has the most secure checks.

  • To Do 2 – Get A Merchant Account

    Does your business accept credit cards and debit payments? If not, you are missing out on many business opportunities and the ability to provide seamless payments for your customers. There are plenty of vendors that provide services for electronic payments, giving you a processing gateway and providing all the necessary equipment. With their help, you’ll be able to accept credit and debit cards from your customers, increasing your sales potential.
    While this is important for your revenue stream, it’s also important to lenders. Explore your options and find the right merchant account with your bank. There are many funding programs called merchant cash advance, that are based on merchant processing statements and not on standard credit underwriting, so you need to take your time and find the right option.

    Merchant Account For Startup Businesses CLICK HERE


To Do List To Complete In This Step

1. Create and properly set up your business bank account.

2. Create merchant credit card processing that reports the tradeline.

Business Account
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