5 Things That You Need to Understand While Setting Up Your Corporate Bank Account
One of the first things you should do when you establish a business is to open a corporate bank account. It is important that you keep your personal finances separate from your business finances, and this cannot be done enough by only keeping individual physical records. Therefore, it is better that business owners either opt for different personal and corporate banks for opening an account or open two different accounts in the same bank.
Firstly, what is a corporate bank account?
Managing your personal finances begins with setting up a bank account for yourself. However, if you want to keep track of your company’s finances, you’ll need a separate business account. These records must be kept in order to comply with tax laws and keep tabs on the progress of your firm. When it comes to managing the finances of your business, it is much different than managing your personal account, which is why it is important that you set up a separate bank account, i.e., a corporate bank account.
Second, how does one open a corporate bank account?
In order to open an account, you must first select a banking institution. It is possible to utilise the same bank that you use for your personal account, or you can look for a bank that is more suited for businesses. Incentives such as discounts, cheaper transaction costs, and emergency loans are available from various banks to small-business owners. Finding the bank that’s best for you just requires a little amount of time and effort.
It’s possible to open an account either online or by scheduling a meeting with the bank. However, there are times when a face-to-face meeting is the best approach to get answers to your queries.
Third, what are the necessary documents?
To open a corporate bank account, you might need the following:
- Employer Identification Number
- Business license
- Business ownership agreements
- Formation certificates
Fourth, are there any corporate account fees?
You might come across some corporate bank account fees such as:
- Transaction fees
- Early termination fees
- Address verification service fees (AVS)
- Minimum corporate account balance fees
Fifth, always do your research
Put in the time to research the various banking options available to you. A business owner should compare the fees and incentives offered by each of the possibilities. Ensure there are no fees or stipulations that you aren’t comfortable with before signing up for a service. Finally, don’t be hesitant to ask questions. After all, this is your corporation’s money, and you should be able to make the right decision.
Don’t miss to check: Business Laws and Regulations in Dubai, UAE
