Monday, May 18, 2015

When Should I Open A Business Bank Account?

March 18, 2015

Dear Cathy:

I just started the research stage of starting a business.  When should I open up a business bank account?  How much will it cost?  Should I open up a business account at the same bank as my personal bank account?  Ready to Get Started Mississippi

Dear Ready To Get Started:

If you are still in your research stage of opening a business, you don’t have to open up a business bank account until you start making money in your business.  Some people are in the research stage, which is the first phase of starting a business, anywhere from 6 months to 2 years.  But you do want to keep your personal and business expenses separate. 

The cost of a business account will be around $100.  You need to provide your business license, Employers Identification Number (EIN), and any other legal documents to open a business account.  You can open a personal and business account at the same bank but you can chose two different banks because again these are going to be two totally separate accounts. 

For your business bank account, you should try to build relationships with banks in the community that caters to small businesses because they might even know of potential investors for your business.  So it’s important to get to know the officers of these banks.

For a complete list of the steps to take to set up a successful business read Chapter 2 of “How To Take Control of Your Own Life: A Self-Help Guide to Starting Your Own Business” -- available as an e-book and paperback.

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