Establishing a Business Bank Account - Explained
How to Set up an Account?
Written by Jason Gordon
Updated at January 20th, 2021
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How do you Establish a Business Bank Account?
It is important to establish a business bank account for a number of reasons.
Foremost among those reasons is the separation of personal and business assets. Failure to do so can lead to loss of personal liability protection in some entities.
Below are the documents necessary to take with you when meeting with an account manager to set up a business bank account.
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Business Entity Documents
You will need your business entity documents. If you are not a registered business entity (i.e., a sole proprietorship or partnership) and you are doing business under something other than your name, you will need a doing business as or fictitious name filing certificate.
Entity Name and Federal EIN (maybe State EIN) - The bank will require the Federal EIN and may require a state EIN to associate with the account.
Minimum Balance
Business bank accounts generally charge businesses a monthly fee unless the account maintains a minimum balance. Fees for the account vary, but the minimum balance is generally between $2500 and $5000.