Opening a corporate bank account is quite simple, but it is a big step forward for any organization. If you’re opening a corporate bank account, chances are your business is growing to a point where banking is becoming a necessary part of doing business (which is great because that usually means the money is flowing in). Here is what you need to know about a corporate banking account.
How to Set One Up
The first step in getting a corporate bank account is setting one up. To get a corporate bank account, you need to select a bank, and then bring in a copy of your certificate of incorporation issued by your state. You also need to sign up for a Federal Employer Identification Number (EIN) and bring that with you as well. Depending on your company type, you may not need an EIN for taxes, but most financial institutions require one for banking.
On the company side of things, you need to pass a corporate resolution that will specifically state that you can have a bank account, and which individuals are allowed to act for the corporation in banking matters. The bank will require a copy of this as well. Make sure that you only have people you trust conducting banking transactions for you.
What Are the Benefits
Having a corporate banking account has a lot of benefits. As your company grows, it is helpful to have different corporate finance accounts for different purposes, including ones for reserves and other savings. Should another financial crisis occur, and cash flows become tight, you want to have a reserve available to continue to be able to conduct business.
Another perk of having a corporate banking account is the access to professional bankers that can help you with any aspect of finances in regard to your company. This could be help with cash management, accounts payable and receivable, conducting international transactions, and more. Also, corporate bankers can help you make sure that your liquid accounts stay safe, so that you can always be ready to conduct business as needed.