Unlike a personal account, business bank accounts require much more paperwork. Are they worth it? In many cases, the answer is a clear “Yes,” as they allow businesses to keep their finances separated and organized for tax season. It’s a good management tool.
No matter what type of account you open, from a business checking account to a business savings account, all banks ask for essential documentation about the business and its owners.
The TPI team has listed various types of information to have, but remember that some of these documents will vary depending on the type of business entity you’re running and the bank you work with.
Paperwork Necessary to Open a Business Bank Account
It’s always a good idea to do your research and be prepared with all of the information needed before making a financial decision. You should have the following paperwork with you when opening a business bank account:
Identification
Only an officer or owner of the business can open a corporate bank account. You will need to show personal identification, such as a driver’s license, a passport, or any state-issued identification.
Employer Identification Number (EIN) or Social Security Number (SSN)
An EIN is required to prove your business’ identity. When you open a bank account, you will also need to have any documents the IRS sent when they issued your EIN.
Applying for an EIN can be done online on the IRS’s website in about 30 minutes by providing a valid SSN and declaring that you will be filing taxes on behalf of a company that is located in the U.S.
Note: Always save financial documentation for your business and personal records.
When sole proprietors do not have an EIN, they can open a business bank account with an SSN instead. But this is the only exception; all other entities are usually required to have an EIN. To be certain, contact your bank since their policies may differ.
Business License
A business license is issued by the state or the local government to permit you to conduct your business. You may find that each district has different processes, so do your research to make sure you follow all of the requirements.
Articles of Incorporation or Certificate of Formation
Articles of incorporation is paperwork that documents the creation of a business entity. It contains pertinent information about the business, including its name, location, and board of directors. The filing of these documents is done through Virginia’s secretary of state.
Doing Business As (DBA) Certificate or Certificate of Assumed Name
Does your business have a trade name that differs from your legal name? What we mean by this is, a business might be called “Stephanie’s Bistro, LLC,” but it operates as “Stephanie’s.”
If your business is in this same situation, you must file a “Doing Business As” (DBA) name. This is also called a “fictitious business name.” You can file the name with Virginia’s secretary of state.
Note: The bank will want to see your DBA certificate and all other DBA filing documents.
The documents listed above are a standard set to have ready before you open a business bank account, however, they will vary depending on the type of business entity, such as:
- Sole Proprietorships
- LLCs
- Partnerships
- Corporations
Speak with our specialists for more information!
Keep Your Business Account in Order
TPI Group’s accounting services can ensure that your company runs smoothly throughout the year. From taxes to opening a business bank account, our experts can help you with all your financial needs.
Contact us today to learn more!