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Business banking can be confusing. There are usually different rules and requirements for business accounts versus personal accounts. The good news is it does not have to be difficult to understand how it works. Here are a few commonly asked questions, and a few of the key differences between personal and business accounts.
Why Do I Need to List My SSN If It’s a Business Account?
Banks will require a social security number or Tax Identification number for the business from the IRS. Banks require this information before they open any new accounts. If you are the business owner, you are held responsible for all transactions and will use the social security number for research and payment purposes. The social security number is a bank safeguard. Also, the social security number can prevent unauthorized access to your account. The bank will also require the social security numbers of any co-signers on the account, and anyone authorized to make transactions. This safeguards you as well as the bank.
Can I Tie My Existing Merchant Account in to My Business Banking Account?
Most banks offer business accounts and merchant credit card processing services. Before linking your accounts, a bank will typically ask you if you want them to offset overdrafts, etc. It's up to you to establish overdraft protection and online wire transfers. Be sure to ask for what you need. You can find a bank that offers all the services you require.
Can I Get a Loan for My Business Through a Business Account?
Large banks typically offer business loans. Some Credit Unions and smaller banks also offer loans, but, restrict guidelines and loan amounts. You can talk to a Bank Business Financial Advisor for more information on your loan needs. Many proprietors will take out personal loans to fund the start up or expansion of a business. Be cautious because you will be responsible for repaying the loan regardless of how the business goes forward.
Will the Bank Want to See My Business Plan?
Most banks will want to see your business plan for loans. A business plan is a great tool for every business, just be sure to update the plan every so often. Your business plan is good way of writing down goals, and keeping track of the goals, as time goes on. Investors in your business will absolutely want to see your business plan, and if the bank is offering a loan then they can be seen as an investor too.
Business Banking: Answers to the Most FAQ's
