How to Open a
Bank Account for a
What is a Business Bank Account?
After you start a painting business, you may want to operate from a business bank account. A business bank account is an account that helps the business-owner keep business transactions separate from personal finances, and usually comes with special conditions for businesses. Common business accounts include a checking account, savings account, credit card account, and a merchant services account. Merchant services accounts allow you to accept credit and debit card transactions from your customers.
Why Do I Need a Business Bank Account?
If you’re planning to incorporate your business as a limited company.
If your business is processing a lot of transactions.
If your business income and expenses are getting complicated and you’re concerned about accurately completing your tax return.
If you want to take out a business loan or get a business credit card.
If you want to take card payments from your customers.
1. Pick a Bank
Find a bank that fits your business needs. Different banks offer different services and fee’s.
What to Look for in a Business Checking or Savings Account?
Interest rates for savings and checking
Interest rates for lines of credit
Early termination fees
Minimum account balance fees
What to look for in a Business Merchant Service Account?
Discount rate: The percentage charged for every transaction processed.
Transaction fees: The amount charged for every credit card transaction.
Address Verification Service (AVS) fees.
ACH daily batch fees: Fees charged when you settle credit card transactions for that day.
Monthly minimum fees: Fees charged if your business doesn't meet the minimum required transactions.
2. Prepare Paperwork
Once you have your Painting Business License, Employee Identification Number (EIN) and a Certificate of Formation (LLC) you can use these documents to open a business bank account. Sometimes your formation is referred to “articles of incorporation”.
3. Open an Account Online or In-Person
Some banks allow opening an account online but I suggest just going in and meeting your account manager in-person is best. They most likely will need your autograph at some point either way.
4. Verify Everything
Triple check all the information in all documents to be sure the spelling, spacing, and punctuation are all the EXACT same. It is important to be consistent with titles throughout your business ventures.
That's it! You now have a Business Banking Account for your painting business. Now it’s time to get some profits in your new account and watch it grow with hard work.