If you operate a business in New York that accepts or spends money, opening a business checking account is crucial. Doing so helps you accurately account for each business transaction, keeping them separate from personal funds. Using a business checking account will also make it easier to handle taxes. You can complete this process by following three steps.
Obtain the appropriate identification
When you’re ready to open a business checking account, the first step is to gather the appropriate identification. Use a driver’s license, passport or other government-issued ID to verify your identity. Obtaining and providing a federal tax ID number will also be required. You’ll use one of the following, depending on the structure and business formation you’ve chosen.
- Employer Identification Number (EIN)
- Individual taxpayer identification number
- Social Security number
It can also be helpful to bring documentation from a utility or credit card company that lists your name.
Get registered and licensed to operate as a business
The financial institution offering you a business checking account will also require official documentation indicating the type of business formation you’ve chosen whether it’s a sole proprietorship, LLC or Corporation. If you’ve decided to operate as a sole proprietor or limited partnership and conduct business under a fictitious name, a trade name or an assumed name, you’ll need to provide this information. You’ll also need to provide a federal permit or license if you operate a business regulated by a federal agency.
Provide ownership agreements and fund your account
If you’re conducting business with partners, the bank where you’re opening the business checking account will likely have you indicate your ownership percentage. Funding will also be required, which might include a minimum initial deposit.
Preparing the correct documentation helps streamline the process, making it easier to complete.