Why do you need a business checking account?
Your business checking account can be a powerful tool to help your company, especially if you use it strategically. Here are some ways it can easily help you:
- Easy transactions: Opening a business checking account will give you the opportunity to easily accept credit cards as payment for your services and products. You can also accept personal checks from customers if you wish. A business checking account will also make it easy for you to deposit checks from your customers because you’ll have your own checking account.
- Control over your finances: There are two things that every business owner wants: control and security. A business checking account will give you both. You’ll know exactly how much money is coming in, where it’s being spent and where it’s going out. You’ll feel safe knowing that any money lost due to fraud or theft is covered by insurance. You’ll also enjoy the freedom and flexibility of operating as your own boss.
- Payrolls: As soon as you open an account for your business, there will be no reason to delay paying salaries to your employees. You can easily make payments through internet banking or by visiting the bank physically at any time during working hours.
- Security: A business is a separate legal entity from its owners. The money in the business checking account belongs to the business, not to the owner. This means that your personal bank account can’t be used to pay for business expenses, which protects you from lawsuits by disgruntled customers or suppliers.
- Ease of paying taxes: You’ll have records that can help with tracking your income and expenses. When it’s time to pay taxes, you’ll have the necessary information handy to avoid any penalties or late fees.
- Able to make more informed decisions. Having a business bank account allows you to keep track of all expenditure and income from every area of your company in one place, which makes it much easier to make smarter decisions about how well your company is doing and where you need to focus your resources moving forward.
What do you need to open a business checking account in Arkansas?
To open a business checking account you will need:
- A business name and contact information.
- A business license or tax ID number (EIN)
- State issued ID
- Your Social Security number (SSN)
- In some cases, you may also be asked for your driver’s license or proof of address.
Common business checking account fees in Arkansas
Here is a list of common business bank account fees that you should be aware of prior to opening an account:
- Account opening fee: An account-opening fee is a charge incurred when you create a new account with a bank or credit union. They’re often negotiable, so if you’re considering a specific bank, call and ask about their policies.
- Monthly maintenance fee: This type of fee is charged by banks on all accounts, regardless of whether they are personal or business accounts, and is typically waived if minimum balance requirements are met.
- Minimum balance fee: This fee is charged whenever a customer’s account falls below a certain minimum balance. There are no maximum limits on how low an account balance can go before a fee is assessed, though some banks will automatically close the account if it drops to $0.00.
- Service Charges: These are fees charged for using specific services provided by the bank. For example, a charge is levied when an account holder uses his debit card to buy a product or service.
- Overdraft Fee: A fee charged when you have insufficient funds to cover an overdraft transaction or an ATM withdrawal. The bank may also charge an overdraft fee if the customer has agreed to pay overdrafts on any item at the point, typically when they write a check for more than they have in their account.
- Teller Fees: This fee is charged every time you visit a teller window at the bank.
- International Wire Transfer Fees: Banks often charge extra to transfer money internationally, especially for large sums of money. The amount of the fee depends on the bank and the destination country.
- ATM Charges: Banks make money from ATM machines by charging a fee when you withdraw or deposit cash from one of their machines or from another bank’s machine.
How to choose the best business checking account in Arkansas
Getting the most from your bank account is about more than just finding a great interest rate. It’s also about understanding all of the ways that the bank can help your business, and what you can do to make sure that you’re getting the most out of your relationship. Here are some tips for choosing the best business checking account:
- Ask questions: This may seem obvious, but it’s important to start by talking with your banker. They can help you find a good fit for your business and can answer any questions that you might have about fees, services, or products. Of course, if you want to give them a call before you meet in person, they’re available online too.
- Do your research: Spend time reading reviews of various banks and credit unions in your area. That way, you’ll have an idea of which ones will be able to offer you the best services and rates.
- Tailor your search based on your business’ needs: If you’re launching a start-up and don’t have a lot of cash in the bank, go for a bank that has good deals on small business accounts. If you’re looking for a place to put excess cash you haven’t invested yet, opt for a high-yield online savings account (though be aware that interest rates are near historic lows).
- Ask friends and colleagues for recommendations: If someone you trust has had a great experience with a certain bank or credit union, they may be able to give you some valuable insight into what to expect from them.
- Consider convenience: Do you need physical access to an ATM machine? If so, then you’ll likely want a business checking account that has nationwide ATM network access. On the other hand, if you will only be using your bank accounts online and through mobile banking apps, then it shouldn’t really matter where the bank’s ATMs are located as long as they are convenient for you and your business.