When looking for a bank to do business with, ask the banker these questions:
1. Do you have online banking?
2. Do you have a business, “free checking”, account option. Allows you to write checks and make deposits without incurring service charges.
3. Is there a minimum balance required for free checking?
4. How long after I make a deposit, do funds become available? Many banks take 3-7 days before they make funds available. Not good. Its your money!
Happy banking!
One of the first steps in starting your business should be to procure an EIN. Without an EIN, your will not be able to open a bank account in the name of the business. The Employer ID Number proves that your legal entity exists. Many people do not realize that an EIN may be acquired before you file documents to incorporate with your state.
If your business is organized as a sole proprietorship, your EIN will be your social security number. However, sole proprietorship is less than ideal. By forming a corporation (LLC), you shield your personal assets from liability. Remember that client that threatened to sue you because their website went down?
Back to the EIN. Getting your EIN is probably the easiest transactions you will ever do with the IRS. You may apply online with the IRS or simply call them up. The IRS will issue your EIN immediately.
