If you are a business owner, it is very useful to understand how to set up a bank account using only a business name. It is never recommended to conduct business with your personal bank account. Your legal liability will be affected in the long run if you are mixing your personal and business finances together. Just follow these simple directions on how to set up a bank account using only a business name, and you will be on the right track!
To set up a bank account using only a business name, you will need:
- Form SS-4 – Application for Employee Identification Number
- Instructions for Form SS-4
- Your Employer Identification number (EIN)
- Your identification (can be any form)
- Your contact information
- The required minimum amount to open the account (can be a cash or check)
- Apply for an EIN with the IRS. This step is a must if you want your business name to be on the bank account. You must fill out the SS-4 Form. You can apply for an EIN with any one of these methods: phone, fax, mail or online. Refer to the Instructions on the SS-4 Form for all the details. The processing time is about four to five weeks.
- Select the type of business account and the bank to open the account with. While you are waiting for the EIN, you should do some research as to where you want to open this business account. You can discuss this situation with your personal banker if you have one. Try to find out if the bank can offer you any good deals or not. Note that there are all kinds of business accounts available with variable terms and conditions with all the financial institutions.
- Visit the bank and fill out the application form. Once you arrive at the bank, ask for a business account application form. The banker will explain all the terms and conditions to you regarding the business account that you want to open. Feel free to ask any questions. Put your EIN, your business name, and the contact information on the application. Sign and date the application.
- Submit the completed application along with the required deposit amount to your banker. Review your completed application carefully. Double check your EIN and your business name. Your banker will ask for your identification in order to verify your contact information. If you write a check for the opening balance, make sure you put the bank name as the payee. Do not forget to sign your check! At this point, you may hand everything to your banker.
Now you can do businesses with your business bank account without hassle on your personal bank account. Forget all the potential legal liability in the future to come! Why bother to mingle your personal and business finances when you finally know how to set up a bank account using only a business name!