Why do you need a business checking account?
One of the key indicators of your company’s financial health is your business checking account. Your checking account shows how responsibly you manage money, and it can also lead to more business opportunities. Here are some reasons why a business checking account is essential for your company:
- Separate personal and business finances: If things go south in your business and you end up filing for bankruptcy, there’s no way your creditors will be able to use any of what they would find in your personal checking account against you in court.
- Attract more customers: The more services you offer to your clients, the more likely they’ll be to keep coming back to you time after time, which means more money for you. Your clients will appreciate being able to pay for their purchases via credit card; it gives them another payment option aside from cash or bills, and many believe that using their credit cards is safer than carrying large amounts of cash with them.
- Better money management: With business accounts, there will be no more confusion over who paid for dinner last week or who paid for gas. With the help of these accounts, you will be able to keep track of all your transactions and expenditures that are made by your employees.
- Easier tax preparation: It will be easier for you to make tax payments from a single account rather than using multiple accounts for each purpose. Plus, it will help you organize your receipts and make them easy for submission with your taxes.
- Flexibility to meet your needs: Business banking products are specifically designed for small businesses, so you’ll have the option of making deposits through online banking or on-site banking services at a local branch office. To ensure that your money is safe, many banks offer online and mobile banking services which allow you to view your financial information from anywhere in the world.
- Safety: If you have an online business checking account, then you can rest assured that all your financial details will be safe from identity theft as well as other frauds
What do you need to open a business checking account in Mississippi?
Below are the documents you’ll need when opening a business checking account in Mississippi:
- Certificate of Incorporation or similar business formation document.
- Corporate resolution or board of directors’ resolution detailing your authority to open an account (if applicable).
- Business certificate or DBA (Doing Business As) form
- Business license (if applicable)
- A valid Tax ID number such as an Employer Identification Number (EIN) or Social Security number (SSN). The EIN or SSN must be assigned by the IRS or SSA before opening your account.
- Proof of address: You’ll probably need to supply at least two different proofs of address—one for your business and one personal (for example, utility bills and credit card statements).
Common business checking account fees in Mississippi
Here’s a list of the most common business checking account fees you’ll typically find in Mississippi:
- Returned item fee: If a check or other payment bounces, you’ll pay a penalty of $25 or more. You’ll get one free return item fee per month in most cases, however.
- Stop payment fee: If you tell your bank to stop payment on a check or direct deposit before it clears, you might be charged $20 or more. The same holds true if your bank stops payment because of an error on your part — say, if you write the wrong amount on a check or deposit the check in the wrong bank account.
- Overdraft fee: This charge applies when you don’t have funds available in your account to cover a withdrawal or other transaction that would otherwise overdraw your account.
- ATM Fees: This can vary greatly depending on the ATM network being used. The biggest difference between business and personal accounts is that business accounts usually give free access to ATMs owned by the bank whereas personal accounts usually charge a fee for using another bank’s ATM.
- Monthly maintenance fee: A monthly fee for maintaining the account. This amount differs from bank to bank, but on average is about $10 per month. Some banks waive this fee if you meet certain requirements, like maintaining a minimum balance or opening other business accounts with the bank.
How to choose the best business checking account in Mississippi
When looking for the best business checking account, there are a few things you want to pay attention to:
- Service: Look for banks that offer personal assistance for questions about opening an account and billing so that you don’t have to deal with automated answering services or be forced to navigate complicated phone menus.
- Tiered interest rates: Some banks offer tiered interest rates on their business accounts, with higher rates provided for balances that are kept above a certain level. Is this something your business could use? If it doesn’t add up to much interest savings, skip it and go with a bank that offers better service and features.
- Transaction fees: One of the most important aspects of a good business checking account is keeping costs low. Ask the bank representative whether there are fees charged for transactions like check writing, deposits, or withdrawals at out-of-network ATMs, or using online bill pay. The more you can avoid fees, the more you can keep your money working for you.
- Free online banking and bill pay: Most banks offer basic online banking services as part of their standard package with no additional costs. This allows you to view your balances at any time and make transfers between linked accounts without incurring fees. Some banks also offer free online bill pay that allows you to pay bills directly from your account without having to write checks or deal with postage stamps and envelopes.
- Ease of use: How easy is it to deposit checks? Withdraw cash? Pay bills online? All of these factors can affect how well you run your business, so make sure it’s convenient for you to use your new account.