The simple answer to this question is you will know. You will know when it is time for you to be opening up that bank account for your business!
Now, I’m sure there are many other financial aspects involved in this decision making process. The second best answer to this question is when your business starts to spend money or earn revenue.
It is important to remember that the source of entrepreneurial joy is not only in the results but also within the process.
Anyone who’s ever on this blog regularly is thinking about starting a business or better yet, already started one and is on their way to achieving financial freedom!
For those who are in the former category, do not worry! There are so many questions I’m sure you have in your head, and we are here every step of the way to help you in your future endeavors… that being said, you might be tempted to rush through the beginning stages and get to the hustling part of business.
When it comes to opening a business bank account, one must consider whether or not they meet the requirements, some of the basic ones being:
- Employer Identification Number (EIN) or a Social Security Number, if you’re a sole proprietor
- Personal identification documents
- Business licenses
- Articles of Organization (for LLCs)
- Articles of Incorporation (for corporations)
If you have all the required materials, it’s time to think about which bank you want to open the account with for your specific business entity. Keep in mind the fees, balance requirements, and transactions limitations involved with the maintenance of the account.
There are many benefits to business bank accounts that don’t come with a standard personal bank account: protection, professionalism, and especially purchasing power. If you’re ready to accept these perks and the responsibilities that come with owning a business bank account, go ahead and open that account!
Congrats for growing one step closer to being your own boss! And don’t be shy; let us know on social media what you did.
DISCLAIMER: Like everything on this blog, this is only sharing ideas. I am not a financial adviser or a consultant for your company. You are solely responsible for your own choices. Please do your own research beforehand. That being said, hope you enjoyed reading this post.