Opening a Bank Account for Your Small Business

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You Can Easily and Cheaply Open a Bank Account for Your Small Business 

No matter what form of business organization you choose, you should probably open a bank account dedicated toyour small business. There are nominal costs, my bank charges about 6 bucks a month. If you are importing or exporting,go with a national bank because you may need assistance with international payments and other issues that your neighborhood bank won’t be up on.If you are working with foreign wholesalers, you will want one that can issue letters of credit etc. which really means a large international bank like Citi, Bank of America or Wachovia.

You may or may not need a big initial deposit to open a bank account, but if you want to open it with $10 or something very small, their acceptance may well depend on your personal credit history. I usually open it with the first proceeds of my business.  The current climate may affect this but I would try to open it and apply for a revolving line of credit at the same time.

Revolving line of credit – The bank will loan you money and as soon as you have paid it back or a portion of it, you can borrow against it again, or borrow against whatever portion is available. It’s just a credit card,but its been around a lot longer and it’s probably going to increase faster and do more to establish you as a serious business.

Just go to the bank with identification ad a copy of your business organization documents, including any state filings.If you have an S-corp, bring your EIN and sales tax permit if you have one. If your state requires a corporate seal, bring that too.

You can build a good banking relationship by

• introducing yourself to the bank manager(s) and establishing a personal relationship
• never bouncing a check

Your bank will also become a source of timely loans,and other services like credit card processing and payroll, they get into everything now.