Small businesses that are ready to manage their finances in a more straightforward and organized way will be happy to know it’s just gotten easier. Business bank accounts are available for established businesses and the five million new entrepreneurs who opened their doors in 2022, according to the U.S. Census Bureau.
A business bank account is an essential part of any successful organization. Beyond the obvious benefit of separating personal and business finances, a business bank account keeps the many hats worn by small business owners organized. Avoiding tax issues and keeping finances organized assists in simplifying daily operations.
Starting and running a successful business requires staying on top of financial tasks. This begins with opening a business bank account. Being familiar with what business accounts are available and what documentation is needed to open a business bank account helps, but it doesn’t have to be complicated. Read on to learn more about which financial solution is best for an established business or a new venture.
What is a Business Bank Account?
A business bank account is primarily for business transactions and managing daily cash flow. The day-to-day transactions from a business account can be the following:
- Online bill pay
- ATM deposits
- ATM withdrawals
- Mobile app transactions and money management
- Debit card transactions
Some entrepreneurs use their personal accounts for business transactions. While it may be common practice for some sole proprietors, it’s important to note that legally, business accounts are required for LLCs, partnerships, and corporations. However, having a dedicated business account can provide added protection to a small business’s bottom line.
Types of Business Bank Accounts
The needs of the business determine the best business accounts. No matter the size and scope of your business, you can ensure successful financial management with the right account type in place.
The outline below shows the types of business accounts offered at Amerant Bank (other bank’s offerings may vary):
Business Checking Account
A business checking account can serve as a multipurpose tool that records business expenses with the help of accounting management software, debits, credits, and mobile app transactions. Starting with this business checking account with up to 150 free monthly transactions is an excellent option for new companies.
Business Interest Checking
A business interest checking account is an ideal option for businesses looking to maximize returns on their deposits. Small businesses can enjoy the same benefits of a non-bearing interest account. However, this option accommodates high balances and comes with competitive interest rates.
Business Advantage Checking
This checking account offers flexibility for businesses of all sizes and types, with additional benefits such as stop-payment options and various essential features. Business advantage checking is best for companies with elaborate cash management needs and moderate monthly activities.
Business Edge Checking
The Business Edge Checking account was designed with a growing business in mind. It offers financial flexibility to accommodate higher balances and more significant transactions. This business account option comes with several benefits, such as 750 free transactions per month.
Business Savings Account
A business savings account is an important tool for businesses looking to improve their bottom line and set aside funds for future use. With competitive interest rates, a 24/7 mobile app, online banking, and ATM access with six free withdrawals as permitted by federal law.
Business Money Market Account
The Business Money Market Account is a unique banking option available to small business owners looking for a low-risk investment account. With this account, business owners can withdraw funds and write up to six checks per federal law.
One of the features that all of these Business accounts have is Zelle® for Business, which allows for the rapid transfer of funds to and from a business.
Zelle® for Business
Having a business account offers many benefits, one of the most powerful being Zelle for business. With Zelle, small businesses can quickly and effortlessly accept customer payments. The only convenient requirement is the customer must pay with a participating U.S.-based bank in the Zelle network.
Business Credit Cards
Business credit cards can be an excellent tool for small businesses to maximize their purchasing power. With cashback rewards, redemptions in travel, and other bonuses, small businesses can use credit cards to keep cash flow under control with reporting tools that track their business’s expenses.
What is Needed to Open a Business Bank Account?
Businesses come in all shapes and sizes and have different needs. But unlike personal bank accounts, a business bank account requires more documentation and effort. While this list is not exhaustive, it encompasses commonly requested items that business owners and managers should be ready to provide:
Your Employer Identification Number (EIN)
Creating an Employee Identification Number (EIN) benefits sole proprietors, limited liability companies, and corporations. This number identifies a business entity and helps prevent identity theft.
Business Information
Whether you are a small business owner or a large corporation, the following business information is needed:
- Name of business
- Business address
- Business phone number
- Business License
- Doing Business As document (DBA)
- Type of business entity
Articles of Organization, Business Licenses, Agreements, and More
When opening a business bank account, the requirements can differ depending on the type of business and legal structure.
1. Business Organization Documents and Agreements
- Requirements for corporations: Articles of incorporation, corporate bylaws, and a business license
- Requirements for LLCs: Articles of organization, operating agreement, business license
- Requirements for partnerships: Business license, DBA, partnership agreement
- Requirements for sole proprietorships: Business license, social security card, DBA
2. Initial Deposit
Like many personal accounts, a lot of business bank accounts have an initial deposit requirement, meaning that when you open the account, you need to make a minimum initial deposit. The range for this initial deposit can vary widely depending on the bank, anywhere from $5 to $1000 or higher.
At Amerant Bank, our Relationship Managers work with multiple business types to ensure opening an account is a seamless and intuitive process.
Banking is more than just technology; it’s personalized support and guidance for businesses to reach their financial goals. When a company opens a business account with just $100, they gain access to cutting-edge technology through Amerant Mobile. Amerant Mobile offers custom alerts, access to 24 months of statements, fraud protection, and more.
Benefits of a Business Bank Account
Opening a business bank account is the first step in establishing a company’s financial foundation. It’s also the beginning of a relationship with a financial institution that will be key to a business owner’s success.
With access to business-specific services and resources, a business bank account can provide the following benefits:
- Tracking business expenses
- Easy credit card payment options for customers
- Decreased fraud risks
- Proof of legitimacy of a business to the IRS
- Access to business loans
What Business Bank Account is Best for Small Businesses?
Small business owners must pinpoint which features and services are needed to operate their business efficiently. If a no-fee business account or one that caters to specific transaction criteria best fits a company’s cash flow demands, then that account would be the ideal business account for that particular small business.
Small businesses that partner with banks that provide them options are vital in today’s market. A business bank account and a financial institution that supports present and future economic growth are essential. For instance, Amerant Bank offers everything from interest-earning accounts to business credit cards and SBA business loans.
Gearing up for success requires a solid financial foundation for both new and well-established businesses. Opening a business bank account at Amerant Bank is simple, and it is the beginning of a dynamic, customer-centered partnership.
We are firmly backed by a 5-Star rating from BauerFinancial as a financially stable community bank. We’ve laid the groundwork for innovative solutions that can improve a small business’s economic infrastructure in any industry. Call us today to learn more about our business products and services.
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