In today’s digital world, it’s much easier than ever before to start a business. In fact, you don’t even need to register your business with the government unless you plan on hiring employees or selling your products or services to the general public in order to meet the legal requirements for operating as a corporation. You can operate as an LLC or sole proprietor without needing to file any special documents with the state, as long as you follow certain guidelines and make arrangements for liability in case of potential lawsuits.
Whether you’re just starting out or growing your business, one of the first things you should do is open up a personal current account that has your business name on it rather than your personal name. This helps keep things organized and makes everything more official from a financial standpoint. Here are some useful tips on how to open a current account with your business name:
Naming Your Account
First things first, you’ll want to make sure you choose a name for your account that reflects your business name. This will help you keep your business and personal finances separate, which is very important for tracking your spending and making sound financial decisions. You can open a current account with your business name at most major banks and credit unions, including online banks.
You can also open a business account at a brokerage firm or online trading broker, if you plan on trading stocks and other financial instruments. You’ll likely have to open an individual account for your business, though, so that you can track your investment gains and losses separately from your business finances.
How to Open a Current Account for a Business
If you’re opening a business account for a new company or business, you may have to provide some additional documents to prove that you own the company. You might need proof of ownership for the name of the company. You also might need to provide proof of your identity, as well as a few other documents to prove that you’re authorized to make decisions for the company.
If you’re switching business accounts, though, you can often just walk into a branch and open the account in person without needing to provide many documents. You might have to provide identity documentation and you may have to write a check to open the account. If you’re opening an account online, you’ll likely have to provide some information about your business in order to open the account. You might have to provide an address or other details about your business. Some online banks may also have identity verification processes you have to go through before opening an account, such as uploading a photo ID or proving your address.
Things to Know About Opening a Business Account
There are certain things you need to keep in mind when opening a business account. First, make sure you understand the terms of the account you’re opening. There are many different types of business accounts and each one may come with different features, such as interest rates, account minimums and fees. Depending on the type of account you open, you may also be able to receive a credit line with a revolving feature. This is a line of credit that you can borrow from and then pay back after you make purchases with it. You should also know that opening a business account may come with some additional costs, such as monthly maintenance fees or charges for using the ATM, depending on the account. You should check with your chosen bank or credit union to see what products they offer and what their associated fees are.
3 Ways to Open a Current Account With Your Business Name
There are three major ways to open a current account with your business name.
- The first way would be to open a brand-new account. This works best for brand-new businesses that won’t have a bank account associated with another company.
- The second way is to use an existing account. This can be helpful if you want to merge two companies into one company and have them share one account.
- The third way is to use a non-interest checking account and set up a sub-account. This is a great way to separate business finances without needing to open a new account.
Key Takeaway
When you open a business account, you can keep your finances separate from those of your personal account. This means that you won’t have to worry about your personal spending spilling into your business finances and vice versa, which can be a huge headache.
You can apply for a current account in the easiest way possible! Just sign up on OPEN’s Dashboard and apply for the current account. Share a few business details to validate your business current account requirements like business name, business category etc. And once you add in all the relevant information, they’ll work with their partner banks to help you set up your current account quickly.
