Things To Consider When Choosing A Bank For Your Business Account

Business owners have different options, and each bank offers something different. Before you find the right bank for your business, evaluate your various options.

"Always shop," said Mike Swanskin, founder and CEO of Global Carrier.

Consider (and ask) the following when looking at different banks:

Fees

Each bank has different fee structures and features. Business accounts generally have higher fees and minimum balance requirements than personal accounts.

Sign Up Bonus

Tracey Odell, vice president of content at Finance Biz, recommends asking the bank if it offers bonuses.

"Sometimes banks offer bonuses for opening a business account," he said. "For example, a bank may offer $300 if you open an account and maintain a certain minimum balance. These offers can be a great way to earn extra income, but remember that bonuses are taxable. Don't be surprised if you receive a 1099 for bonuses next tax season. "

The Need To Maintain An Account

Business bank accounts usually have requirements you must meet. Failure to do so may result in a charge. For example, it is common for banks to require you to maintain a certain balance - but this minimum amount varies from bank to bank - and may be a minimum or a monthly minimum. It may not happen at all. If you have multiple accounts, the bank may list all of your accounts for a total minimum payment, or it may look at each account separately.

In exchange for a certain minimum balance, some banks will not charge you if you carry a certain minimum on a debit or credit card linked to your account, or if you use one of the banks, in addition to corporate checking accounts. . Other measures.

Features

Consider which account details are important when comparing banks.

For example, do you need a business bank account with detailed analytics?

Want a mobile app that lets you deposit checks digitally? Need a business card?

Would it be nice to receive notifications when your balance is close to minimum?

How To Open A Business Bank Account Depending On The Type of Business.

According to Grant Aldrich, founder and CEO of OnlineDegree.com, opening a business bank account, opening a sole proprietorship, or checking account is the same process no matter what business you're in.

"If you're a sole proprietor, you should bring a Social Security card instead of an EIN," Aldrich said.

Sole proprietors need to bring their business licenses, DBA certificates and personal identification documents.