Why do you need a business checking account?
What are the benefits of a business checking account? The benefits of a business checking account vary depending on what level of service you choose and the features available at your bank or credit union. Here are some common benefits:
- More Security: When you have separate accounts for your business and personal finances, you will be able to create folders or sub-accounts within your business checking account in order to keep work-related expenditures separate from those related to your personal life. You can also set up alerts that will notify you when certain amounts are being withdrawn from the account.
- Asset protection: Your personal finances aren’t mixed with your business finances, keeping your money safe from any legal issues that might happen with your business operations.
- Businesses have many expenses: They need money to pay for office supplies, utilities, and other general costs of running a company. They also need money to make payroll for employees and pay taxes to the government. A business checking account helps them manage all these expenses efficiently and effectively.
- You will be organized: A separate bank account for your company will help you organize your finances and keep track of income and expenses more easily than if everything was mixed together in the same bank account with your personal finances. A separate bank account helps protect your personal assets from being used for your company’s debts.
- Keep track of income: Whether it’s from customers or from government grants, income needs to be logged so that the company knows how much money is coming into the business and how much money is going out of the business. Businesses need to maintain accurate accounting records in order for them to make smart decisions about future spending and budgeting.
What do you need to open a business checking account in Nevada?
The necessary documents to open a business checking account include the following:
- Contact information for your business: name, address, phone number, fax number (if applicable).
- Copy of your business license and photo ID if you are claiming a sole proprietorship.
- Valid driver’s license or identification card
- Your social security number and/or federal tax identification number.
- Proof of business ownership, such as an original certified copy of your corporation’s certificate or articles of incorporation and a copy of the most recent tax return filed for the business (if applicable).
- Proof of your address
- Business Taxpayer Identification Number (TIN)
Common business checking account fees in Nevada
Here is a list of common business checking account fees:
- Minimum Balance Requirements: If there is a minimum balance requirement in order to keep your account open, make sure you have enough in your account to cover this fee. The last thing you need is to get charged because you don’t have enough money in your account!
- ATM Usage Fee: Some banks charge an ATM usage fee when you use an ATM at another bank (AKA outside of their network). Make sure that this doesn’t add up every month!
- Monthly maintenance fees: Most banks charge a monthly maintenance fee for maintaining their business checking accounts.
- Stop payment orders (SPO): An SPO is a request made by a customer or business that tells their bank to hold any checks specified in the order until further notice. Expect to pay a fee when you make such requests.
- Paper Statement Fee: Most banks offer electronic statements instead of paper ones, which are often free, but some charge for paper statements anyway.
How to choose the best business checking account in Nevada
When it comes to choosing a business checking account, you have options. Your bank may offer a variety of business accounts, or you could choose a different type of institution. Here’s what to consider if you’re deciding between a business checking accounts
- Cost: How much will it cost you every month? In addition to the monthly maintenance fee, some banks charge a fee for each transaction you make over the course of a day (such as three debit card purchases made on different machines at different stores). Some banks charge different fees for different types of transactions. For example, one might charge more for checks written than for ATM withdrawals.
- Check-writing privileges: Do you plan to write a lot of checks? A free business debit card offers convenience, but if your business is going to pay its bills mostly with paper checks, this should be a key consideration.
- Online access: Most, if not all, bank accounts today give you online access to your accounts. You can view current balances and pay bills online, as well as transfer funds between accounts. If this service is important to you, make sure that it’s available with the account you choose.
- Free checking: Many banks offer free checking for their customers. You might have to pay a fee for each transaction that you make, but no monthly fees are assessed. If this is important to your business, make sure that the bank account you choose offers this benefit and read through its terms of service carefully so that there aren’t any hidden fees associated with it.
- Balance requirements: Business checking accounts usually require a certain balance to avoid monthly fees. Some banks waive this requirement if you meet other criteria, such as signing up for a direct deposit or maintaining a minimum balance in another account.
- Service options and hours: Some businesses might like the extra convenience of 24/7 customer service, while others might not need it.