Have you ever seen businesspeople lose everything including their homes? While it may seem impossible, it’s quite easy for everything to lose everything where the corporate veil is not clear. It must be easy for the law to differentiate your business and personal finances. Otherwise, if you ever get sued, the law will come after your personal items too. Other than forming an LLC, you can also protect yourself by Opening a Business Bank Account in New York State for the company. Not only does it make accounting easier but it comes with a hoard of benefits that we will later cover.
Protecting yourself is easy and you can do it within even minutes. Some major banks will even allow you to complete the documentation completely online such that you don’t even have to show up physically. Let’s look at the major steps to follow and how to navigate each one:
You will find that many businesspeople opt to have a checking account, which can be online checking account or accounts with traditional banks. If you will not be making cash deposits, you can base yours online, which comes with the added benefit of very low-to-no fees. Traditional accounts, on the other hand, are better for people who need a range of services. While at it, you may also want to open a business savings account to help your company save for future expansions. Business bank account for LLCs fall under:
Did you know that you can pay no monthly fees on some free business accounts as long as you’re meeting minimum balance requirements? Often, this works as long as you deposit a given amount of money each month. And you will not lose out on services such as writing checks or making electronic deposits. For a business that does not handle daily cash transactions, BlueVine is a good choice.
A traditional business checking account has low fees and comes with the advantage of a range of features plus a wide network of branches and ATMs. You can cash in on writing checks, debit card withdrawals and transfers as well as electronic money receipts and transfers. They also offer a ton of welcome bonuses. A good example would be the Bank of America.
For companies that do not handle cash on the daily or prefer to have their transactions online without going to a physical branch location, an online banking platform is ideal. First Internet Bank is a good option which offers an online application. Plus, most of these online business checking accounts do not charge maintenance fees as long as you meet the monthly minimum balance.
If you want to earn some interest on the side from money that is not immediately needed in the business, business savings accounts for LLCs can work. You can maximize your savings and use these to expand the business or cater to emergencies. Good Business savings accounts for LLC options include money market accounts, high-yield savings accounts and business certificate of deposit accounts.
Most institutions offer a hybrid in their accounts such that you can access two or more of these options e.g., you can have the option to transact online and physically.
Finding the best bank for your LLC ultimately determines how much you spend on fees, how easy it is to access your money, the customer experience you will have and the range of services available. It’s often better to open an accountin in New York State where you already have a relationship with the management. It becomes easier to get in on perks that would otherwise not be available to you. When you choose the best bank for your business, you can also consider:
Banks charge fees on some transactions though you can bypass these by meeting some criteria. For example, if you transact money within a given threshold, you are subject to fewer or no fees. Even so, understanding the costs is important:
Generally, you will be subject to:
Per transaction, expect to pay:
You also have the option to open a free business bank account. That does not mean you won’t pay monthly service costs, but they might be much lower than what you would typically pay.
You will generally pay:
Each transaction attracts:
As part of opening a business accountin in New York State preliminaries, you have to verify the name and operations of your company. Additionally, where you hire employees, you will need to register with the IRS as well as other governing authorities. The bank will generally want paperwork to confirm what you tell it when submitting your application. Gathering the required documentation depends on the business type you choose:
You will need:
In this case, you must provide:
You will need:
The requirements are pretty much the same and you need to show:
You can opt to go to the bank or apply online. Luckily, most institutions now offer both options. As long as you have the documents, you can work with any option. Either way, there will be a software or person to guide you through the process. Physical branches, though, are better for people who want more of a network of physical branch locations and face-to-face customer service as well as a phone number.
Depending on your choice of bank, you can deposit funds via check or an electronic funds transfer (for people with QuickBooks). Ask what depositing funds options are before choosing the right type of account. Some even offer check deposits without going to the branch. These are called remote deposits.
Did you know you can get more out of your account by connecting it with other services such as merchant processing? You can do this for a company that deals with cash often. It makes monitoring easy when you link your business bank account with your business credit card. Plus, you can also register for a credit card in some banks.
Do not forgo opening a business bank account in NYS; else, you run the risk of having your corporate veil pierced and losing your personal assets. Before you find the right bank for you, review all the available options and make an informed decision. Otherwise, the application process for a business account is relatively easy.