Why do you need a business checking account?
Here are some of the reasons why opening a business checking account can be beneficial to your business:
- Separate business and personal finances: When you own a business, you need to maintain separate finances for your business and personal finances. It can be hard to keep track of the two sometimes, which is why we recommend opening a business checking account. You can use this account to pay for your business expenses and then report the income and any deductions on your taxes. Plus, if you’re like most people and you’re not a pro at handling money, having a business checking account will help you keep your personal finances in order.
- Security: If your business has been sued or if anyone tries to use any of your money without your permission, you can be protected from this. You can also protect yourself against any bad checks that may be written against your account because you will have to prove that the check was authorized by you before you have to honor it.
- Accessibility: The best thing about having a business checking account is that it is accessible 24 hours per day, seven days per week. You do not have to worry about going into the office or asking someone else if they need any money because you can easily deposit funds by simply transferring them into the account electronically.
- Convenience: You are also able to use online banking services such as online bill paying and e-statements. This is much more convenient than having to write checks out to each vendor or going into the bank to make payments each month. The time savings alone is worth switching over to a business checking account that has these features available.
- Keep track of your money: You can view all of your transactions in one place, rather than having to go through multiple institutions for different services. You also have more control over the security of your money since it all resides in one safe place.
What do you need to open a business checking account in North Dakota?
Details vary depending on the bank or credit union, but most require some combination of the following documents:
- Business license or articles of incorporation. The document officially establishes your organization as a legal entity.
- Valid government-issued ID for the owner of the business: Driver’s license, state ID card, passport, and Social Security number are all acceptable documents to verify identity.
- Proof of residency for the business owner. This may include a utility bill or other official correspondence from a local company or government agency.
- Articles of incorporation for your business
- Federal Tax ID Number (EIN)
- Social Security Number or Federal Employer Identification Number
- DBA (doing business as) certificate
Common business checking account fees in North Dakota
Here’s a list of some of the most common fees associated with business checking accounts:
- Minimum balance fees: Every business checking account comes with a minimum balance requirement that must be met to avoid a monthly fee. The requirements vary from bank to bank and from business to business. Some banks require a minimum balance of $2,500 and others require $10,000 or more.
- Monthly maintenance fee: The most common type of fee charged by business checking accounts is the monthly maintenance fee. This charge is usually between $8-$15 per month and covers the cost of maintaining your account.
- ATM Fee: For those banks that charge this fee, it typically ranges from $2 to $5 per transaction.
- Overdraft Fee: This is a fee you are charged when you write a check or make an electronic transfer for more money than you have in your account and the bank has to cover the shortfall by paying the amount on which there is not enough money in your account. Overdraft fees vary greatly depending on the terms of your account, but they are often between $25 and $35 if you are found to have written checks or made electronic transfers over the limit of your account balances on more than one occasion in a particular month.
- Stop-payment fees: If you instruct your bank to stop payment on an item from your account, it could cost you almost $30 depending on how many items are stopped in one year.
How to choose the best business checking account in North Dakota
If you are considering the best business checking account, then you will want to look at several factors. We have listed some of the most important factors below:
- Customer support: What type of support do you want from your bank? Do you prefer face-to-face interactions or online support? Do you want 24/7 access to customer service or just limited hours?
- Free transactions: Your bank should waive fees for all transaction types. Some banks charge fees for some services, such as bounced checks or overdrafts.
- Tiered pricing: You want to find a business checking account that offers tiered pricing for low-balance businesses or those with limited transactions. This will help ensure that your business stays within budget.
- Free checks: It’s also important to look for an account that offers free checks and order options, so you don’t have to worry about ordering new checks every month or paying for them out of pocket.
- Ease of use: Lastly, make sure the system is easy to use since you will likely be signing up for online bank statements, which makes it even easier for you to keep on top of your finances.