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As a separate legal entity, your corporation will need its own bank account.
What is a Business Bank Account:
An account from the bank of your choosing that is specifically established for your business – please remember that you should not use this account for shareholders, employees or for personal use.
Why:
As a corporation, it is critical that you keep your business life separate from your personal life, so that you personally are not on the hook for your corporation’s debts and obligations. You will need to set up a separate business bank account for your corporation to help maintain this separation. The IRS also requires that you keep your personal and business transactions separate from one another.
When:
You should set up your corporation’s bank account soon after it is incorporated and definitely before you start taking in revenue.
Where to setup a Business Bank Account:
Go directly to the bank or apply for an account online. Many banks have small business specialists who can offer their expertise.
How:
When you go to the bank, you typically will need to present the following documents to set up your corporation’s bank account:
- Federal Employer Identification Number (or EIN);
- Certificate of Incorporation or Articles of Incorporation (filed version);
- Your valid identification;
- Board of Directors resolutions (approving bank account formation);
- Bylaws; and
- Good Standing Certificate for the corporation.
It is likely the bank also will have additional application forms and documents that you will need to complete and sign. In particular, you will need to have prepared a description of your corporation’s industry/business.
Since there are many options available for different types of bank accounts, be aware of the various costs and service levels offered.
