How to Open a Bank Account for Your Proprietorship
Learn how to open a bank account for your proprietorship. An account helps separate personal and business funds, provides access to services, and enhances credibility. Sole proprietors can choose from checking, savings, and merchant accounts. Consider costs, features, reputation, and integration when selecting a bank. Minimum deposits can be as low as $25, but this comes with keeping a $1500 balance. It takes 1-4 weeks to open an account, and being registered speeds up the process.
Filing for a DBA
Filing for a DBA allows operating under another name without a new organization. For example, Tom Johnson runs his own business and wants to open a sandwich shop called Subs ‘n Chips under that name. He needs a DBA to operate under Subs ‘n Chips, accepting checks under that name.
Importance of Separating Business and Personal Funds
A current account is for heavy transactions, unlike savings accounts with withdrawal limits. These provide freedom for unlimited transactions for salaries and more.
Banks ask for a CA certificate to open current accounts, supporting existence of the proprietorship.
Does a sole proprietor need an EIN to open a business bank account?