Most links in our content provide compensation to Slickdeals. Applying for and maintaining consumer credit accounts is an important financial decision, with lasting consequences, and requires thought, planning and comparison shopping for the offer that best suits your personal situation. That's why we offer useful tools to evaluate these offers to meet your personal objectives. Be sure to verify all terms and conditions of any credit card before applying.

How to Set Up Small Business Banking

Having the right banking tools for your small business can help you avoid problems and keep day-to-day operations running as smoothly as possible. 

Advertiser Disclosure: Most products in our articles are from partners who may provide us with compensation. However, opinions expressed here are author's alone, not those of any bank, credit card issuer, airline or hotel chain. This page may include information about American Express products currently unavailable on Slickdeals. American Express is not a partner of Slickdeals.

As a small business owner, it’s essential to set up key financial tools that can help you run your business the right way. This process starts with a business checking account. Yet depending on the type of company you operate, this type of business deposit account might be just the first of many banking solutions that you need. 

Below is an overview of several different types of small business banking accounts you might want to consider opening for your business. Your business may or may not require all of these tools, but it’s helpful to know what’s available. 

Small Business Bank Account

bakery owner running small business
iStock

One of the first steps you should take when you open a new business is to establish a separate business bank account for your new company. It’s important to keep personal and business finances separate for tax purposes. And if you’re a serial entrepreneur who owns more than one company, you will want to keep the finances for each company separate as well. 

At a minimum, you should open a small business checking account for your new company. It may also be wise to open a business savings account — providing you with a place to store savings for business emergencies and future growth opportunities too. If you take the time to shop around, you may be able to find new business bank bonuses that might help your business earn extra cash when it opens its new bank accounts. 

How to Open a Business Bank Account

Depending on the type of business entity you establish, you may have to provide different documentation when you open a new business bank account. Different financial institutions may have different requirements as well. 

Here’s a general overview of the documents you might need to supply when you open a business bank account: 

Additionally, you’ll need to provide several organizing documents, which will vary depending on what type of business entity you are launching. These may include:

  • Articles of Organization
  • Articles of Incorporation
  • Partnership Agreement
  • Business License

You should also be prepared to share details such as your business address, phone number, and any assumed business names (also called DBAs).

Recommended Account: Chase Business Complete Checking℠ 

Offer Details
chase business logo effective october 2021

Secure application on issuer’s website.

Bonus: $300 for New Accounts
Monthly Fees: $15 monthly service fee with options to waive
Minimum Opening Balance: None
Features:
Same-day deposits using its QuickAccept service
Unlimited monthly electronic deposits, ACH deposits, and Chase QuickDeposits
Access to 16,000 ATMs and more than 4,700 branches
Process debit card and credit card purchases through the Chase Mobile app
Mobile deposits and account management
FDIC insured

Merchant Account

Point of sale at merchant
Unsplash

Once you open a general checking and savings account for your business, you may want to consider opening a merchant account as well. A merchant account can enable your company to accept credit card and debit card payments from its customers. 

It’s important to have the ability to process credit card payments since the majority of consumers (57%) use credit and debit cards to pay for purchases. If you have a brick-and-mortar location (especially a retail storefront), your business may also need a POS or point-of-sale system that works with your merchant account. A POS system enables customers to insert a chip card or swipe their credit cards or debit cards for payments. 

One potential option to consider if your business needs to accept credit card payments is Chase Payment Solutions℠. This credit card processing system from Chase Bank (formerly called Chase Merchant Services) can enable your company to accept credit cards. The Chase merchant account even features the ability to turn your mobile device into a mobile point-of-sale solution. 

Small Business Credit Card

paying with credit card online
Twenty20

Another type of financial account that you may want to open for your company is a small business credit card. There are several reasons you might want to apply for a small business credit card, including the following potential benefits that these accounts may have to offer. 

Small business credit cards might help you:

  • Establish business credit
  • Keep business and personal purchases separate
  • Manage cash flow
  • Earn valuable rewards like points, miles, or cash back

With most small business credit cards, the credit card issuer will check your personal credit when you apply for a new account. So it’s wise to review your consumer credit reports (and possibly your personal credit scores) before you apply. 

You typically don’t need perfect credit to qualify for a small business credit card. Yet a good or excellent credit score may increase your odds of qualifying for a new account. If you’re not happy with the condition of your credit when you review it, you might want to make a plan to try to improve your credit before you apply for financing (small business credit card or otherwise). 

If you open a small business credit card, remember that it’s best to pay off the full balance on any credit card (personal or business) each month. When you follow this smart credit management habit, you should avoid paying expensive interest charges. Plus, paying off your credit card balances each month may help you keep your credit utilization rate lower as well. Consumer credit scoring models and some business credit scoring models may reward you with extra points when you keep your credit utilization rate low. 

Bottom Line

Setting up different bank accounts, merchant accounts, and small business credit cards for your new company might be somewhat time-consuming. And as a business owner who’s trying to juggle the many responsibilities of managing a new startup, you might not feel like you have the extra time to take on additional tasks. Yet setting up the right small business banking accounts for your company is essential for the long-term success of your business. 

The good news is that opening the business bank accounts you need should not be an ongoing chore. Once you go through the initial effort of comparing offers, finding the best banks to work with, and opening the right small business bank accounts for your company, you shouldn’t have to revisit these tasks unless a problem arises in the future. 

While we work hard on our research, we do not always provide a complete listing of all available offers from credit-card companies and banks. And because offers can change, we cannot guarantee that our information will always be up to date, so we encourage you to verify all the terms and conditions of any financial product before you apply.

Michelle Black
Michelle Black
Michelle Black is founder of CreditWriter.com and HerCreditMatters.com. Michelle is a leading credit card journalist with over a decade and a half of experience in the financial industry. She’s an expert on credit reporting, credit scoring, identity theft, budgeting, small business, and debt eradication. Michelle is also a certified credit expert witness and personal finance writer.

Take this 1-minute survey to help improve your site experience

Related Links

Related Posts