As a freelancer, you might not know the first thing about opening a business or a business bank account. Well, good news! We are here to tell you that it is not as scary as it seems! There are a few steps and documents that you need, but we will walk you through all of that! As a freelancer, here are the 6 things you need to open a business bank account.
Business Name and Entity Type
You will need to provide your business name and the type of entity you have formed, such as a sole proprietorship, LLC, or corporation. You can read more The 6 Most Common Business Structures about the different types of formations you can choose for your business.
Employer Identification Number (EIN)
You will need to have an EIN, which is a unique nine-digit number assigned to your business by the IRS. This is a relatively simple step-by-step process through the IRS website. You can obtain an EIN online here.
Business Documents
You may need to provide documentation to verify your business. The specific document that you need to provide can vary depending on your area, but some of the most common documents are your Articles of Incorporation, partnership agreement, business license, and Employer Identification Number (EIN) Confirmation Letter.
Identification
You will need to provide identification for all authorized signers on the account, such as a driver's license or passport.
Business Address
You will need to provide your business address and contact information. In general, most banks do not accept PO boxes as valid business addresses for opening a business bank account. This is because a PO box is not a physical address where your business operates, and banks require a physical address for their records.
However, there may be some exceptions to this rule. For example, if you run an online business that does not have a physical location, some banks may allow you to use a mail forwarding service that provides a physical address for your business.
Initial Deposit
You will need to make an initial deposit to fund the account. The amount of the deposit required will depend on the bank and the type of account you are opening.
It's important to note that the specific requirements for opening a business bank account may vary depending on the bank and your location. It's a good idea to research the specific requirements of the bank you are interested in and contact them directly to ensure that you have all of the necessary documentation and information. It is important to note that the information provided in this blog is for general informational purposes only and is not intended to be legal or professional advice.