A dedicated bank account offers many benefits to a business owner. You can use it to make payments in your company’s name and save your profits with a relatively high interest rate. The good news is that opening a corporate bank account is simple. You can do it in three easy steps, which we’ll explain in detail.
You need several documents if you want to open a business account, including:
You can open different types of corporate accounts, including
A checking account is versatile and the most popular type. It’s suitable for day-to-day transactions, including payroll, vendor payments, maintenance expenses, etc. They work like typical accounts: you can make deposits, withdrawals, and transfers anytime.
This type is where you keep money that you don’t need in the short term. You can store your profits in it, and the good thing is that banks usually offer healthy interest rates for savings accounts. However, you can’t access funds as freely as with checking accounts.
This type allows you to accept online payments from debit or credit cards. When a customer makes a payment, it goes to the merchant account to be processed before arriving in your other checking or savings accounts.
Money market accounts (MMAs) pay higher interest rates and offer insurance past the usual government limit. The trade-off is that requires a high minimum deposit and has limited transactions.
You can open accounts to store money in foreign currencies. It works like a typical checking or savings account but with another currency. The drawback is that it usually has high fees.
You can open a business account online or in person. Online registration is more convenient because you don’t need to be physically present at the banking branch. You can simply complete an application on the bank’s website or mobile application. You’ll submit your documents online just as you’d do in person.
After submitting your documents, you’ll wait for a review. If approved, your financial institution will contact you and provide your account details. Afterward, you can start transacting seamlessly. You can also request additional services such as a debit/credit card or loan.
Corporate accounts make you look more professional to customers and fellow businesses. They also offer limited liability protection by keeping business funds separate from personal funds. We have explained how to open a corporate account in three easy steps.
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