Opening a business bank account can be daunting for many new business owners. However, there are many reasons why business bank accounts are useful. These include keeping your personal and business finances separate, establishing clear records for tax preparation, and keeping track of cash flow more easily
Even if you already have a business bank account, shopping around for the best solution for your financial situation can offer you even more benefits. At West Shore Bank, we offer a package of convenient services to streamline your business banking and allow you to run your business with ease.
What is a business bank account?
In many ways, a business bank account operates similarly to a personal account, but with additional features that support you as a business owner. Typically, a business account is opened under the name of the business, rather than you as the owner. This is where you’ll receive all of your business income and make payments to vendors.
Beyond this, though, you’ll have access to services that personal account holders don’t usually need, like receiving income in different currencies, 24-hour deposits for larger amounts than a personal account, and business credit cards.
Why is a business bank account essential?
There are many reasons why opening a new business account can help you move your business forward and anticipate current and future growth.
Most businesses are required to make quarterly payments on estimated taxes accrued throughout the year. Having your finances separated upfront will make it much simpler to work out and pay what you owe each quarter. Regardless of whether you’re working on your taxes yourself or you have an accountant handling everything, keeping this money separate saves countless hours in tax preparation.
Another important benefit to keep in mind when moving to a business account is that, if your company is ever subject to a tax audit, you need to be able to prove what money belongs to your business and what is considered a personal asset. Otherwise all of your money, business and personal, could be scrutinized in an audit, which could ultimately cost you more in penalties should any issues be found.
If you’re running your business as a sole proprietor, you don’t need to open a business account, although it’s still helpful to do. But if you’re operating as a limited liability company (LLC), limited liability partnership (LLP), or as a corporation of any kind, you should open a separate bank account to your personal one, using your legal business name. This very clearly designates which money belongs to the business, versus personal and business money being merged.
This account will need to be opened with the Employee Identification Number (EIN) provided to you by the IRS. This is similar to a Social Security Number, but is used for businesses rather than individuals.
When you’re thinking about growing your business, you may want to consider a business loan to help fund expansion. With a business bank account, you can start to build credit with a local bank who may finance your future loan. A dedicated account for your business funds makes you look more professional and clearly shows that you take this seriously as a business, rather than a hobby.
What to look for when switching business bank accounts
You may already have a bank account set, but now you’re looking to switch business bank accounts. With West Shore Bank, we aim to overcome the concerns you’re experiencing with your current bank by providing:
- Great customer service. If you’ve experienced poor support from your existing bank, you may be considering moving on to a different organization. Having the right team behind you, particularly when it comes to your business finances, can help you save money and make smarter, goal-oriented decisions about your business operations. Take a look at our Google reviews and ratings to see what our customers think!
- Local assistance. At West Shore Bank, our team all live in the local community—we want to see your business thrive and enhance our area. We’re close by and on-hand when you need to speak with your business banker or a member of the treasury management team.
- Supporting business growth. If your business has grown over the last few years, you may have outgrown the current offerings of your current business account. You may need to upgrade your business banking solutions to suit your current financial needs. West Shore Banks offers a free analysis of your current banking services and tailored proposal to ensure your banking evolves alongside your success.
- Additional fees at your existing bank. It’s common for certain business banking products to require monthly minimums or a service fee. We work with you as your partner to find the best solutions for your business needs and minimize your costs.
Comparing business accounts at West Shore Bank
At West Shore Bank, we offer several different business bank account options, ideal for anyone from new business owners to experienced entrepreneurs. Since 1898, we’ve been committed to helping businesses in our community thrive.
All our business accounts come with digital banking and a debit card. We also offer the ability to send invoices and accept customer payments via Autobooks. Your business banking is simplified with access to everything you need to manage your cashflow with one of our digital banking solutions. Please talk to one of our personal bankers to learn more.
While each business account requires a $200 minimum opening deposit, there are other benefits that you can receive based on the type of account that works best for you.
Thinking about a new account? Here are some of our options:
- Business Checking.
- Business Interest Checking.
- Business Analyzed Checking.
- Business Venture Checking.
- Interest on Lawyers Trust Account (IOLTA).
Open a new business account today
From business checking accounts to business credit cards, the team at West Shore Bank is here to help you find the right solutions for your growing organization. Our business services are built to support you and streamline your business operations as much as possible. Save time and money with 24-hour night deposits, telebank phone services, and ATMs located throughout Michigan and beyond.
All of our accounts offer identity theft monitoring, credit score tracker, cell phone protection, and free consultations on investments, estate planning, and retirement.
Contact the business team at West Shore Bank today or stop by one of our nine convenient local branches throughout Michigan, from Hart to Traverse City. Open your new business checking account today and start benefiting straight away!
