Why do you need a business checking account?
Here are some reasons why a business checking account is beneficial:
- Easy access to funds: If you run into an emergency situation with your business, having a checking account will allow you to have easy access to funds, so you can pay bills or vendors on time. You’ll find that most banks offer same-day access to funds from most accounts, ensuring that you can pay employees and other creditors quickly when necessary.
- Convenience: The convenience of online banking makes it easier than ever before to handle transactions and finances of your company without leaving your home or office. It’s also become easier to deposit checks through mobile banking.
- Access to a full range of financial services: Businesses often need more than just checking accounts. They may need to make online payments, pay employees, and buy supplies. Having a single financial institution that offers multiple services makes it easier for businesses to handle all of their finances in one place. In addition, you can build your credit profile with the bank.
- Access to credit line: Businesses can get access to more capital than they could with a personal account because the banks will be able to assess your business. As your relationship progresses with the bank, you’ll be able to get more access to credit.
- Taxes: You are able to separate your personal and business expenses, so you’re prepared for tax season and will have less stress.
What do you need to open a business checking account in Utah?
In order to open a bank account, you will need to provide the bank with the following documents:
- Business license: In some states, this is also known as a Certificate of Doing Business Under an Assumed or DBA Name. This document denotes that you are officially in business and allows you to open a separate bank account for your company’s monetary transactions.
- Federal Tax ID Number: This is the Employer Identification Number (EIN) issued by the IRS. This number is used to identify businesses and corporations for tax purposes.
- Personal identification: This can range from a copy of your driver’s license to a passport or other government-issued ID.
- Business information: Depending on the type of business you have, you may need to provide information about your business structure, such as a copy of the Articles of Incorporation or Partnership Agreement.
- Proof of your address: You can provide a recent utility bill or property tax statement.
Common business checking account fees in Utah
Whether you’re just starting out or have been in business for years, it’s important to understand the fees associated with a business checking account. The following are some common fees:
- ATM fees: Most bank ATM machines charge a fee, typically around $2 or $3 per transaction, though that amount can vary by location and time of day. Some banks waive this fee if you have a minimum balance and use their own ATMs (though this may not include surcharge-free ATMs). Check with your bank for details.
- Statement copy fees: Many bank accounts give you free copies of your statements each month. If you want extra copies, some banks charge as much as $2 each
- Minimum balance fee: Banks typically set minimum balance requirements for business accounts. This can range from $0 – $5,000, depending on the institution’s policies and regulations. If your balance falls below this number, expect to pay service fees.
- Overdraft fees: If you try to spend money in your account that doesn’t exist, it’s called an overdraft and it can result in fees up to $35 per day or transaction (depending on the bank). Your bank may also charge fees for having insufficient funds in your account (NSF).
- Check withdrawal fees: This fee is associated with withdrawing funds from an ATM that isn’t owned by the bank.
- Per-check charge: You can be charged $0.20 per check printed out of your account. This is necessary to cover the cost of processing checks and replenishing inventory.
How to choose the best business checking account in Utah
When choosing the best business checking account, here are some factors to consider:
- Bank fees: Banks charge various fees for their products and services. Consider the charge per overdraft, monthly service fees, and online banking fees. And be sure to choose an account that provides easy access to your money when you need it most: ATM withdrawals, check orders and check deposits can help you keep your cash flowing smoothly.
- Transparency: A transparent bank is one that clearly states all fees associated with a checking account in writing before you sign up for it. Be wary of any bank that makes you agree to more than one set of terms or tries to sell you additional products and services when opening an account as these types of tactics can be used by banks to hide fees.
- ATM Availability: You will need access to ATMs whenever you need them, so make sure there are plenty of local ATMs for your convenience.
- Perks: When choosing a business checking account, look for banks that offer perks like rewards programs and ATM reimbursement. You can use these perks to reduce costs, in some cases.