Why do you need a business checking account?
Business checking accounts offer several benefits, including:
- Tiered interest rates: These accounts often offer tiered interest rates that are lower than traditional savings accounts or certificates of deposit (CDs).
- Special services: Business checking accounts may come with different perks, such as online banking, mobile banking, ATM access, and more. These services make it easy for you to manage your money in a way that works best for you.
- Safety for company funds: You’ll have your money stored digitally and if it’s stored with an FDIC insured account, you’ll have the protection of up to $250,000 if the bank fails.
- Profile history: You’ll build a history with the bank which can provide financing in the future as you build your relationship with them.
- Taxes: When tax season comes around, you’ll be able to determine your revenue and costs much easier as opposed to only using a personal checking account for both personal and business expenses.
What do you need to open a business checking account in West Virginia?
Here is a list of the documents you will need to open a business checking account:
- Proof of your address, such as a utility bill.
- Your company’s articles of incorporation or organization papers with your company name, address, and type of business.
- Business License. This confirms that your business is registered with the local government.
- Proof of identity. Ex: Driver’s license, passport, birth certificate
Common business checking account fees in West Virginia
Many business account holders are not aware they are paying more in fees than they have to. With a little knowledge of the most common fees and how to avoid them, you can save money. Here are the most common fees you should beware of:
- Overdraft fees: It’s not uncommon for businesses to occasionally need more cash than they have on hand in their accounts. However, if your account balance dips below zero, expect to be charged an overdraft fee each time you make a purchase or withdrawal.
- ATM fees: As with personal checking accounts, some business checking accounts charge fees for every ATM withdrawal you make. These fees can range from $1 to $5 per withdrawal – which are pretty steep when you consider that someone making 20 ATM withdrawals will pay at least $100 in ATM fees each month.
- Monthly maintenance fee: The monthly service fee is a charge to maintain an account in good standing (no late payments).
- Per-check charge: $0.05 to $0.50 per check. This is charged per check that is deposited into your account, regardless of whether it’s written by you or someone else (if your employees are authorized to write checks on behalf of your company).
- Minimum balance fee: This is another common fee levied against people who don’t keep enough money in their accounts. Banks want to encourage customers to keep higher balances, so they charge consumers for not doing so. You may see minimum balance requirements anywhere from $500 to $2,500 or higher.
How to choose the best business checking account in West Virginia
Here are some factors to consider in order to choose the best checking account for your business:
- Costs: While some banks provide basic checking services without charging an annual fee or monthly maintenance fee, others charge either of these or both. If cost is a consideration, be sure to factor in these fees along with any monthly service charges that may apply.
- Needs of your business: If you have employees, you may want to look for a business bank account with payroll capabilities. If you frequently write checks from your account, you may need an account that features overdraft protection.
- Type of banking: Do you have a local bank where you can walk in for assistance? Or do you prefer online banking services? The type of banking options available to you will be determined by where you bank or what kind of bank it is.