Opening your own business can be scary, but it doesn’t have to be so difficult. Follow these steps and you’ll be well on your way to having your business bank account up and running in no time!
Reaching out to banks via phone and email
Reaching out to banks is the first step. They will likely ask you what your business’s goals are, what type of funding you’re seeking, and how much money you intend on keeping in the account. Let them know that you would like an account with one checking and one savings account, which should be FDIC insured. Tell them that you would like access to all your funds right away, as soon as they open the account for you. Most importantly tell them how many employees will be working at your company–which might change over time depending on what stage the company is in and how large it’s grown.
Steps Involved in Opening a Business Bank Account
#1 – Start by picking a bank with which you have an account or have done business with before.
#2 – Gather your personal identification, like your driver’s license and social security card.
#3 – Gather your company information, such as the entity type (i.e., sole proprietorship), company name, company address, etc.
#4 – Find out what the purpose of the account is (i.e., checking or savings). Ask how many accounts can be opened per customer and what their maximum balance limits are for each type of account.
#5 – Pick the types of checks you would like your business to use and provide specifications (check register form, with the calendar year).
#6 – Identify your settlement terms. Do you need deposits within business hours? Is there anything else you can add to save money? Ask what their minimum balance requirements are and whether there are any other fees associated with your account.
Before you open an account, it is important to check out what the bank offers. Some banks will have requirements such as having $5,000 in your account or by applying for a business loan with them. After choosing your bank, determine if they offer accounts just for businesses or if they have individual accounts that can be used by both small and large business owners.
It is recommended that you compare both types of accounts before making any decisions on which one suits your needs better.
It is also very important to know the benefits of each type of account and what you need to open it before finalizing the decision. Generally, when comparing individual and small business accounts, individuals will find fewer benefits as opposed to those who do business on a larger scale.
Another aspect that you need to keep in mind is if an account holder is eligible for a small business loan. For example, Wells Fargo offers eligible accounts with an unsecured line of credit in addition to its other regular small business banking services.
In contrast, Charles Schwab offers basic business checking and savings accounts while First Citizens bank offers both personal and business savings accounts depending on your needs.
Lastly, GEMB bank provides business checking and depository services such as wire transfers while still being able to offer personal lines of credit so you can have easy access to funds when necessary.
Once you have selected your bank, it is time to fill out an application for opening a business account. You will be asked for basic information about your business and how you plan on using their services.
Next, you need to make sure that you have all of your documents in order and have copies of them easily accessible. This includes a business license, company profile, profit-and-loss statement, and anything else they may ask for.
Once you have all of your documents together, submit them in order to complete your business bank account application.
It is also recommended that you consider ordering checks with your company name and logo so that they match your newly created business checking account. This will help promote your brand and make it easier for customers or clients to recognize. You can find many different styles online or even order them from a company such as VistaPrint for relatively cheap prices.
Lastly, make sure that you always use your business bank account when it comes time to deposit or withdraw money and that you pay your monthly bills as they are due.
Step 7 – Request For Proposal (RFP)
To get the best price, it is recommended that you request proposals from different suppliers, such as from printers, mailers, and website developers. An RFP allows you to create specifications for your project that can be sent out to multiple vendors.
When requesting an RFP from vendors, ensure that it has all the items that are relevant to your business. There are two types of RFPs – electronic and hardcopy. Electronic bids should be submitted via email while the hardcopy should have been mailed before an email is sent.
An RFP will help streamline the sourcing process by having companies submit their bids in competition with one another based on what they think they can offer at the cheapest price.
Bid requests should not exceed one month from being sent out. Response times from vendors should not be longer than two weeks as doing so is likely to cause delays in your business launch. The response time for an RFP also affects how quickly you will be able to meet your deadline for launching your business. You may choose three or four vendors you like best after receiving bids and follow up with their replies until you get one that best fits your needs.