In contrast to personal accounts, the business bank account requires the use of more documents. Are they worth the hassle? In many instances, there is an affirmative “Yes,” as they help businesses keep their finances separate and organized for tax time. It’s an effective tool for management.
Banks require documentation regarding the Business and its proprietors, whatever kind of account you open, such as a business check account to a savings account.
The Tax and Law Research Inc. team has provided a list of different kinds of documents you should be aware of, but keep in mind that the documents are different based on what type of commercial you’re operating and the bank you’re working with.
Paperwork Required To Open A Business Bank Account
It’s always good to conduct your research and have all the relevant information before making a financial choice. It is recommended to have the following documents with you to open a business bank account:
Identification
Only an owner or officer of the Business can create a corporate bank account. You must present your identification documents, like an I.D. card, driver’s license, passport, or any other official identification issued by the state.
Employer Identification Number (EIN) Or Social Security Number (SSN)
An EIN is required to establish the legitimacy of your company. If you are opening your bank account, it is also necessary to present any documents you received from the IRS to issue your EIN.
The application process for an EIN is done via the IRS’s site in less than 30 minutes after providing the IRS with a valid SSN and stating that you are tax filing for a business located within the U.S.
Be sure to save all your financial records for your business and personal documents.
However, if sole proprietors don’t possess an EIN, they may open a bank account for Business using an SSN instead. However, this isn’t the only exception. All other companies are generally required to be registered with an EIN. You should contact your bank for more information as their policy might differ.
Business Licence
An official business license is issued by the state government or the local government, allowing you to operate your business. Each district may have its process. So, do your homework to ensure you comply with all requirements.
Articles Of Incorporation, Or Certificate Of Creation
Articles of incorporation are the paperwork that documents the establishment of a company. It includes pertinent information regarding the company, such as its name, address, and directorships. This filing happens through the secretary of state of Virginia.
Doing Business As (DBA) Certificate Or Certification Of Assumed Name
Do you have a name for your business that is different from your legal name? We mean that a business could be referred to as “Jonathan’s Bistro LLC”; however, it is operated as “Jonathan’s”
If your company is in the same position, it must apply for the “Doing Business as” (DBA) identity. This is also referred to as”a “fictitious corporate name.” It is possible to submit the name to the secretary of state in Virginia.
Notification: The bank will require your DBA certificate and any other DBA documents filed with the bank.
The above documents are the most common set of documents to be ready before opening an account with a bank for Business. However, they can differ by the kind of business entity you are, for example:
- Sole Proprietorships
- LLCs
- Partnerships
- Corporations
Contact our experts to learn more!
Make Sure Your Business Account Is In Order
Tax and Law Research Inc.‘s accounting services will ensure that your business runs smoothly throughout the year. From tax preparation to opening a bank for a business account, our specialists can assist you with all of your financial requirements.
Contact us today for more!
