What Documents Are Required To Open A Corporate Bank Account?
Before opening an account with a commercial bank, you need to have the following documents:
- Introductory article
- Commercial license
- Doing business as a certification (DBA).
- Employer Identification Number (EIN).
Identification Documents
Rampenthal said entrepreneurs need to consider a variety of factors when opening a corporate bank account. "Preparing the necessary documentation is critical to enable a smooth process."
Find out each of the documents required to open a corporate bank account.
Introductory Article
Your documents tell the bank how your business is structured and you use these legal documents to register your business with the government and other agencies.
"If you do business as an LLC, limited partnership, corporation, or other separate legal entity, you need to register with the state to open a bank account if you are the sole owner," said Tiffany Wright. , CEO of Resources, a financial consulting firm for small and medium-sized businesses, and project manager of Cogent Analytics.
Commercial license
"The bank will ask for your current business license to show that you are authorized to do business locally," Rampenthal said.
?This will also ensure that your company takes responsibility for all transactions, including taxes and fees. "Check with your state, county and local government to see if you need a license to run your business."
Doing business as a certification (DBA)
DBAs, often referred to as "fictitious names," allow them to "engage in activities such as marketing or advertising or accept payments under a name other than the company name," says Deborah Sway, CEO of My Corporation. . . . . . . . . . . . . . . . .
It was added that most banks require a certified copy of a DBA to open a corporate bank account because entrepreneurs cannot use a personal bank account on behalf of the company.
Applying for a DBA allows organizations to operate under a different name without creating a new entity, Sway said. ?Think of a businessman named Tom Johnson. Tom is a sole proprietor who runs his own business and wants to open a diner called Subs' n Chips. Tom wants the company to operate under the name Subs' n Chips instead of Tom Johnson. Therefore, he was required to register as a DBA to conduct business under that name, as well as to accept and sign checks issued in the name of Subs' n Chips.
Employer Identification Number (EIN)
If you are a sole owner, you will need an EIN number, a Social Security number and a driver's license or passport, says Levi King, founder and CEO of Credit & Monitoring Solutions Company.
EINs are also used for identity theft, fraud and money laundering. King adds that some banks allow individual owners to open accounts without an EIN, but it's still useful to do so.
"The EIN is key to managing taxes and paying employees," Rampenthal said.? Individual owners can use their Social Security number instead of an EIN for corporate tax purposes, he added. "You can get an EIN for your business by submitting an application to the IRS."
Identification Documents
?Finally, you will need to provide proof of identity.? The types of evidence "could include government-issued photo identification, such as a driver's license or passport," Rampenthal said. "This is used to verify that the entrepreneur actually owns and / or operates the business in question."