What is Corporate Bank Account?

What is Corporate Bank Account? | Benefits of Business Bank Account

What is corporate bank account?

A business or corporate bank account works the same as a personal bank account, it may have checking, savings, credit and merchant accounts. However, the purpose is for a corporate entity to have its own finances without being mixed to the owner(s).

What are the benefits of a corporate bank account?

There are many benefits to a corporate bank account, here are a few:

  • Protection: Banking as a business offers a limited liability protection to keep the business funds separate from your personal funds.
  • Professionalism: As a business grows the perception that costumers have is extremely important, with a corporate bank account costumers will be able to pay the owner(s) with checks, debit, and credit cards directly to the business instead of the owner(s) personal account.
  • Purchasing and Credit Power: Having a credit card account helps stablish a credit history in your business, this way the business can be truth worthy and have more purchasing power when dealing with banks.
  • Taxes: A lot of expenses can be classified as a business expense and this way an owner can save on taxation.
  • Organization: A business account provides a clear picture of the profit, loss of the business. Finances don’t get mixed with personal.

Things to consider:

When opening a corporate bank account there are things that an owner must consider.

Business checking and saving:

  • Intro fees
  • Interest rates
  • Interest rates for lines of credit
  • Minimum account balance fees
  • Transaction and early termination fees.

Merchant services:

  • Discount rate: Percentage for every transaction
  • Transaction fees: the amount for every credit card transaction
  • ACH daily batch fees: Fees charged for settling transactions for a day.
  • Monthly minimum fees: Fees charged if monthly requirements are not met. 

Requirements needed for opening a corporate account:

  • Select a business structure (LLC, Corporation, partnership, sole-proprietor)
  • Business must be stablished in department of corporation of state (Ex: www.sunbiz.org in Florida)
  • Request Tax ID. (EIN for LLC’s and Corporations or social security for sole proprietors)
  • Create an operating agreement (If necessary)

With all the information presented considered, the business owner(s) should go to a bank and be able to open a bank account for their business.


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