Bank Account

Bank Account

A corporation will need a bank account. Establishing a bank account for your corporation is an important step in creating a separation between private and business assets and is critical for establishing liability protection. Typically, checks payable to a corporation cannot be cashed by a shareholder. Instead, they must be deposited into an account.

Bank Fees

Unfortunately, many banks charge ridiculous rates to corporations for the right to put their money in the bank. You can tell how much extra a corporation is being charged when you compare a corporate account with a personal account with similar activity.

Fortunately, some banks have set up reasonable fees for small corporations. Some charge no fees if a specific minimum balance is maintained. Because the fees can easily amount to hundreds of dollars a year, it pays to shop around.

Paperwork

All you should need to open a corporate bank account is a copy of your articles of incorporation and your federal tax identification number (and perhaps a business license). If you have trouble opening the account, you can use the banking resolution in your minutes of the corporation’s organizational meeting.

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