A business bank account is helpful when you have a lot of staff or send and withdraw huge amounts monthly. Personal bank accounts are more suitable for your individual finances, and mixing them with business accounts could confuse calculations.
Having a business account helps you get a business loan, receive customer money, pay your staff and suppliers, and look professional. You can have a simplified procedure when calculating your company’s taxes too.
Numerous banks provide business accounts, and each has its features, requirements, and so on. Thus, you must pick the most appropriate one with lower transaction rates, as well as be able to meet your business needs. To help you with the search, consider the following factors:
1. Business Banking Requirements
First, you must know your business’ most appropriate bank account type, i.e., a sole proprietorship, partnership, or limited liability company (LLC) account.
If you’re a non-resident operating an LLC or any other business in the United States (US), you must open a business bank account for non-US residents. Yet you’ll need to meet all the requirements needed for setting up a non-US residents’ banking account, such as personal appearance to the bank during the account opening application, proof of address, and the like.
Launching a business bank account for non-residents is easy if you work with a reliable partner that’d do the groundwork on your behalf so that you wouldn’t need to travel to America to get things done.
2. Banking Fees and Charges
All business bank accounts charge a certain fee when you work with them. The banks charge different rates; some may be relatively low or high. Plus, others might have hidden fees they may fail to disclose.
So, start by checking the monthly maintenance fees, transaction fees, wire transfers, address verification services, overdraft fees, early termination fees, ATM usage, check processing, and other services associated with the business bank account you’re planning to open. Then compare different banks to find the most cost-effective option for your business.
3. Categories of Business Bank Accounts and their Services
There are categories of business bank accounts, such as the following:
- Business Checking Account
A business checking account is the most commonly utilized deposit account for transactions. It comes with a debit card and chequebook, and you can also make transactions through online banking easily.
- Merchant Account
If your enterprise takes debit and credit card transactions, a merchant banking account is for you.
- Cash Management Account
Cash management accounts let business owners manage their money under one portal – promoting convenience to busy entrepreneurs.
- Business Savings Account
A business savings account is akin to a personal savings account. It enables you to keep extra money, grow value and earn interest rates on your company’s savings.
Pick the most appropriate banking option to simplify your organization’s financial transactions.
4. Availability and Convenience
Look into the bank’s availability by checking if they have branches within your locality. It can enable you to do the banking personally or speak to the managers face-to-face when you have a banking-related issue.
Similarly, look for a bank that offers convenience to their clients through different ways like robust customer support, banking through mobile apps or over the web, and many more. Lastly, make sure that the bank has a reliable and broad ATM network so that you can access your business funds almost wherever you are or whenever you want.
5. Set Minimum Maintaining Balance
Check whether the bank imposes any minimum balance requirements for the business bank account. Most banks have a minimum balance for maintenance, and falling below that threshold could result in additional fees or service restrictions. Thus, you’ll need to assess your enterprise cash flow to determine if you can comfortably meet the minimum balance requirements.
6. Additional Offers
Different banks offer additional services to their customers depending on their banking requirements, like the number of transactions they expect to make, the need for cash deposits, access to credit facilities, online banking services, and international transaction capabilities.
Hence, look into merchant services, payroll services, wire transfers, check writing, business credit cards, safe deposit boxes, and business loans that are being offered to you. Assess whether these offerings align with your business requirements and growth plans.
7. Credibility and Stability
Work with a bank that has high credibility and is very stable. Look into their financial standing, the period they’ve been in operation, and so on. And they should have robust security measures, encryption, multi-factor authentication, and fraud monitoring systems to protect your business funds.
Conclusion
As you open your business bank account, you must ensure you choose the right bank to work with to help you meet your company’s financial goals and growth demands. Consider the factors listed above to help you with your search. All the best.
