Financial well-being March 4, 2016 By
There are several options to choose from when opening a business checking account, and depending on the needs of your business, selecting the right account will not only help serve your specific business needs but also save your business money.
How your business is set up is important to understanding what account you should choose. Julie Stovall, in her post “Starting Your Own Business,” lists four common business structures: sole proprietorship, corporation, limited liability company (LLC), and partnership.
The following documentation is required to open these accounts:
Sole Proprietorship
- Picture ID
- Business entity resolution
- Signature card
- Anyone besides the registered owner’s name who can be on the account
Corporation
- Picture ID
- Business entity resolution
- Certificate of incorporation
- Articles of incorporation and bylaws
- Physical addresses of all signers and officers (Only authorized agents or officers sign the deposit resolution but signers can be named on the account.)
Limited Liability Company
- Picture ID
- Business entity resolution
- Certified copy of articles of organization
- Operating agreement
- Physical addresses of all signers and officers (only authorized agents or officers sign the deposit resolution but signers can be named on the account.)
Partnership
- Picture ID
- Business entity resolution
- Certified copy of limited partnership
- Certificate of formation
- Limited partnership agreement
- Physical addresses of all account signers and officers
Note that multiple business checking accounts exist to fully meet the needs of these business structures. Understanding what each account offers and how it fits your business is essential to saving your business money. Some accounts incur fees when you exceed monthly transaction limits while other accounts exist without monthly service fees. Still others earn interest on the account’s balance. Business account holders should also be aware of depository service charges to avoid costly fees. The following is a short list of those charges:
- Checks/debits
- Charge-back items
- NSF items paid fee
- Coin deposits
- Coin purchases
- ACH fees
- Stop payments
First United is here to help your business grow and prosper. Think of us as your partner but also remember that we are a business, too—just like yours—so we understand your challenges. Visit fub-online.com to find the checking account that's right for you!
