Money Matters: A Guide to Setting Up a Business Bank Account with Ease
A business checking account is a necessary component for any business, regardless of size or industry and separates your personal and business finances. This allows you to manage and track expenses, payments, and revenue. In this article, you will learn how to set up your business bank account for your food business.
First, you will determine the type of business entity you fall under. For Union Kitchen Accelerator members, you will register your business as an LLC. This will determine the documentation you need to provide to open the account.
Gather the necessary documentation. You will need to provide documentation that verifies your business's legal existence and your authority to open a business checking account. This may include a business license, articles of incorporation, and/or an Employer Identification Number (EIN). The specific documents vary by bank and financial institution.
You should shop around for the best business account. Different banks and credit unions offer different fees, minimum balance requirements, and other terms for their business checking accounts. Comparing these options and choosing the one that best suits your business's needs will set you up for success from the beginning. Once you choose the bank and gather all the necessary documentation, you may also be required to make an initial deposit into your new bank account. We recommend that you make an initial deposit so that you can start building your business’s credit history.
Opening a bank account is a vital step for managing expenses and cash flow for your business. Through each of the four phases of our Accelerator, your business will need funding to support growth and scale. Preparing the necessary documentation and researching the different banks will ensure that you are setting your food business for financial success and help you manage your finances to keep your business running smoothly.