Why do you need a business checking account?
Trying to manage your business cash flow from a personal account is simply a bad idea for both you and your business. You can avoid some costly mistakes by having a separate business checking account. Here are just some of the reasons why you need a business checking account:
- Easy management of funds: If you’re running a startup or small business, managing finances might not be the most exciting task. Keeping track of income, expenses and payments may seem like an unnecessary headache. But with a business checking account, you can easily keep track of what’s going in and out of your business’ bank account.
- Flexibility: Business checking accounts often come with online banking access so you can stay on top of your finances from anywhere. If you travel for work, you can manage your money from anywhere with an Internet connection.
- Separate personal and business finances: This makes it easier to track money coming in and out of your company while also helping you stay organized and not spend time trying to figure out where large sums of money have gone or what they were spent on.
- Tax deductions: For example, if you purchase office supplies for your business, those items will be considered a business expense, which means that you can deduct them from your gross income on your taxes at the end of the year.
- Easy access to funds: The availability of funds is extremely important to businesses because they are able to pay their bills and meet their financial obligations when they need to do so.
- Cash flow management tools: Some banks offer cash flow management tools like lines of credit or funds transfer services that can help businesses manage their cash flow more effectively than cash-only businesses can do with just a checking account.
What do you need to open a business checking account in New Hampshire?
Generally speaking you will need some form of identification and proof of your address. These are the most common forms of ID:
- Valid and dated Doing Business As (DBA) certificate or registration certificate, if applicable.
- Proof of address: utility bill or bank statement from the last 30 days, government-issued ID, or current lease agreement (if applicable).
- Proof that you are the legal owner of the business
- Personal Identification
- Certificate of good standing: A certificate of good standing is issued by your state’s Secretary of State and verifies that you have complied with all applicable state laws, regulations, and fees as well as any judgments or liens against you.
- Resolution authorizing signature authority on behalf of the corporation/partnership (if applicable). A resolution from management authorizing the person signing authority on behalf of the company (i.e., the CEO, president, general partner, or member) to open an account on its behalf. The resolution should include the name(s) and title(s) of the authorized signer(s), authorization date, and expiration date.
- Business tax ID number if applicable.
Common business checking account fees in New Hampshire
Commercial banks and credit unions have different rules when it comes to fees and services, but in general, these are the common fees that you’ll encounter:
- Minimum balance fees: These are fairly common, especially for small businesses with little cash on hand. If you don’t maintain a minimum balance in your account at all times, expect to pay an extra fee ranging from $5 to $30 per month, depending on the bank.
- Overdraft fees: Sometimes referred to as “bounce” or “insufficient funds” fees, these charges are levied by banks when the money in your account isn’t enough to cover your purchases or checks. The amount of an overdraft fee varies from bank to bank but typically ranges between $15 and $30 per occurrence. Most banks will let you sign up for overdraft protection, which means they’ll authorize transactions even if there isn’t enough money in your account.
- Monthly Maintenance Fees: Monthly maintenance fees typically range from around $10-$15 per month. These account fees help offset the cost of maintaining your account, processing checks, ATM use and other expenses.
How to choose the best business checking account in New Hampshire
- Service fees: The best business checking accounts have low or no fees. Look for an account that doesn’t charge monthly fees, minimum balance fees or overdraft fees and has no per-check charges. In addition, avoid accounts that charge to use ATMs not affiliated with the bank or that charge to have checks deposited electronically.
- Online bill pay: Online bill pay allows you to pay bills from any location with an Internet connection. This can save time as well as money because there’s no need for stamps or envelopes.
- Maintenance fees: Always check to make sure that there are no monthly minimum balance requirements. Also, look to see if there are any maintenance fees associated with the checking account. Make sure you shop around and compare the different costs associated with each checking account.
- Flexibility: Businesses with multiple users might want to look for accounts that offer online, mobile or remote deposit options so employees can quickly make deposits from their devices. This reduces time spent at the bank and money spent on gas for employees who have to drive to make deposits in person.
- Minimum balance requirements: Many online banks have no minimum balance requirements. Others require much higher amounts, especially if that bank is offering high-interest rates on their accounts as well as service fees for smaller balances.
- Your business’ needs: Smaller businesses with less cash flow will likely benefit from using a standard noninterest-bearing checking account. If you have higher transaction volume and more cash flow, it’s likely better to use a business interest-bearing checking account.