Running a business is not easy, as there are many tasks to keep at the forefront of your mind on a daily basis. In terms of finances, you can make your life easier by having a business bank account. This is a professional way to run your business as it makes it much easier to track your income and expenses. A business bank account plays an important role in growing your business, simplifies tax reporting, and deposit payments.
A business bank account also lets you plan the budget, receive payments, manage payroll, as well as generate financial reports for potential lenders or investors. With that said, many business owners may wonder, “How do I set up online banking?” We’re here to answer that question below.
- Can I Open a Business Bank Account Online?
- Things to Know on How to Open a Business Bank Account Online
- Steps to Open a Business Bank Account Online
Can I Open a Business Bank Account Online?
The answer is yes, you absolutely can. Opening an account online helps you save a lot of time, money, and agony. Opening a business account online, however, may not be as straightforward as opening a personal one — even though these days it’s pretty easy for any business owner to apply for a business credit card and a business loan online. So why opening a business bank account online is different? We’ll explain why in the following article.
Things to Know on How to Open a Business Bank Account Online
Navigating the process of opening a business bank account online can be tedious, but it doesn’t have to be a huge headache. Many banks are hesitant to allow anyone to open a business bank account online because that kind of openness allows identity thieves to open bank accounts virtually. That’s why the process has to be a bit more complex — in order to ensure that the business and business owner’s finances are legitimate and will remain safe and sound.
However, some major banks have digitized the steps for how to open a business bank account. You just need to find the right bank, and you may have to visit the branch once or twice to complete the process.
Steps to Open a Business Bank Account Online
Step 1 – Figure out what kind of business bank account you want
When looking to open a business bank account, you have four choices: a business checking account, business savings account, merchant account, and credit card account.
A Business Checking Account offers the ability to access your cash easily through a debit card, checks, or electronic payments and is a great choice for managing payroll, expenses, and other basic financial tasks to keep your business running.
A Business Savings Account is best when you want to put away money your business has outside the working capital. It allows you to keep your business earnings in a safe investment while earning interest on it every month. Typically, the best account lets you earn more than 1% APY, helping you maximize your savings for future needs.
Merchant Account is great if you plan to accept credit and debit card payments. However, not all banks offer this account type, so you would need to check with your bank to see if you can set up the Merchant Account. Shop around before settling for a particular account.
Credit Card Account can help you get more out of your everyday expenses. You can build your business credit and get organized with expenses tracking tools. You can use your business credit card for emergencies and miscellaneous items for your business.
Step 2 – Find your Options
Once you know the kind of business account you want to open, the next step is to find the best banks that offer what you need. First, you need to find banks that offer the option to open a business bank account online — as not all offer this service. When you select a bank to open your business bank account online, there are certain factors to look into. These include overall cost and fees, customer service, online banking experience, ease of bookkeeping integration, number of locations the service is offered, and other business financial products provided such as loans, lines of credit, and credit cards.
Once you’ve taken these factors into consideration, list down the banks and choose the one that fulfills all your needs. Our advice is to open a business bank account with a bank where you have a previous banking relationship as you know what type of customer service they offer.
Step 3 – Gather the Required Documents
When opening a business bank account, you need to provide documentation to verify the name and general nature of your business. You may also need to show documentation that proves your business is registered and indicates that you have the legal authority to set up the account. However, the exact requirements to open a business bank account differ based on your corporate structure. We understand that opening a business bank account and making sure you have the right documents can be challenging. For that reason, we created a checklist for the required documents by corporate structure for you to use.
- Articles of incorporation
- Business licenses
- DBA certificate
- Employer identification number (EIN)
- A signed declaration of unincorporated business
- Identification documents like a passport or driver’s license
Step 4 – Fill Out the Info
Once you’ve taken care of steps one, two, and three, you’ll be relieved to find that the next step in opening a business bank account online is smooth sailing. Go to your bank’s website and download the account opening form and fill out your information. Upload the filled application form along with the required documents, confirm the identity, and make an initial deposit. Once you’ve submitted the form, you will receive an acknowledgment that your online business bank account form is successfully submitted. You’ll receive a welcome kit, debit card, and PIN mailer at your doorstep within a few days.
The steps above can help you on the path to opening a business bank account online. This is a vital process for all business owners to understand if they don’t want to go in-person to a bank — which is especially the case during our current era of the pandemic. Before you open one, however, identify the right business bank account type, find the right bank, and have your documents in order. This will set you up for better business success.