Basic Documents Required For Small Businesses To Open Bank Accounts
Every business requires a standard checking account at a bank in order to carry out its financial transactions including payments and collectibles. While large corporations may pick out multiple accounts and have a dedicated team to carry out the financial transactions, a small business would usually pick a single bank to ease through its financial transaction requirements. When starting a business or when changing to an alternate bank, a business is required to provide extensive documentation to be able to carry out the bank account opening process.
Documents that a small business essentially requires to open the bank account include:
- An ID of the business and the individual who runs the business to ensure that both of them are authentic and not a hoax startup. Getting the business’s registration papers and the individual’s picture ID that was issued by the government can be the best documentation to start a bank account with.
- Providing a copy of the business license is mandatory when one is opening a bank account in the business’s name be it an individual proprietor or a registered LLC
- For a business that is run by a group of owners or by members of an advisory board, a copy of the incorporation papers has to be presented for account opening. Also, personal identification documents and authorization letters have to be given to the bank for allowing an individual, who is either the financial advisor or a representative that handles bank transaction, to have access to the funds and other extensive transaction details.
- A DBA, which is defined doing business as a fictional name, will have to provide records of their government registration forms that were used to list with the State government has to be provided at the bank when opening an account.
- Small business, of any kind, will have to provide their TIN (Tax Identification Number) documentation for registering under their bank account with the tax and employment databases. In the case of a sole proprietor, they can use their own social security numbers for their business accounts.
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