One of the first things you may want to do after creating your business is to open a bank account for your business. Having a business bank account could help you keep your personal and business money separate, which can make it easier to keep track of your business’s finances, protect your personal finances in case of business financial challenges and save you time when you need to prepare a tax return.
In addition to simplifying your business records, opening a separate bank account could:
- Be a legal requirement if you created a limited liability company (LLC) or corporation.
- Be a required step in accepting non-cash payments.
- Offer you a safe place to store your cash.
- Have additional features or benefits for businesses.
- Small business owners should learn about how bank services could help their business. Here’s an overview of the account types, services, how to compare different accounts and what you’ll need to open a business bank account.
Common business banking services and benefits
Financial institutions that offer business bank accounts may also offer you a business loan, credit loan or credit cards. These types of business credit could help you manage your business’s finance. However, always be cautious when you’re borrowing money. Have a plan for how you can effectively use the money and how you’re going to repay the debt before you agree to take out a loan.
Having a business bank account could also be a requirement for accepting non-cash payments, including debit cards and credit cards. The bank that you open your account with may help you get set up to accept cards. However, you could be better off comparing your options to determine which merchant services provider will charge you the lowest fees.