Are you planning to take your business to the next level? If yes! Opening a business account is the first step. But it does not seem easy to make it happen. You need some essential documents that will assist you in opening a bank account. Whether you are a newbie or already have an established business, you need to make these documents ready before applying for a band account. Most people are confused and frustrated after knowing about the complexity of the process. However, having the right guidance will make this process easy for you. So, without any delay, let’s start our topic, in which you know what documents you need to make a business bank account in the US.
Employer Identification Number (EIN)
The US government provides a special number to every business called the Employer Identification Number. When a company wants to open a bank account or look for new hires and even wants to file taxes, they need it. It’s also like a social security number for them. This will help the IRS to track business activities for tax purposes. Applying for an EIN is not difficult; you can easily submit your application by simply visiting the IRS official website. If a business wants to start a joint venture, this document is crucial. Without that, you may face delays and some legal issues.
Personal Identification
It is crucial to provide your identification in terms of opening a bank account in the US. This helps the bank to verify that what you say about yourself is the correct information or aligns with personal identification or not. Once they know that you are the authorized person who is going to manage their finances, they proceed with your request. In most cases, banks ask for documents like a passport, driving license, or government-issued identification card to verify your information. Owners are responsible for providing proof of their identity. Sharing these verification documents will not only protect banks from fraud but also streamline online translation for business owners.
Business Formation Documents
Providing your business formation documentation is required when opening a U.S. business bank account. This shows that your business is registered and legally recognized. These are the set of documents that include the certificate of formation or incorporation details. In this way, you can represent that your business is in bank records and legitimate, or it’s a separate entity apart from your own account. You may have to provide specific documents.
Depending on your business structure, such as an LLC, corporation, or partnership. This helps you to start your business officially under the framework of the bank and state.
Business License or Permit
Starting a business operation in a specific location requires permits and licenses. The types of licenses you need depend on the location and industry in which you are currently available. For example, if you are a restaurant owner, you may need a permit that shows you have the right to sell food items. Similarly, if you are manufacturing some kind of electrical parts, you need a license related to your industry. Local, state, or federal authorities issue these licenses, and they ensure that your business meets all regulatory requirements. It is crucial to have the right licenses in place to avoid fines and legal issues.
Partnership Agreement (if applicable)
If you are doing your business with someone else or inviting an investor for a joint venture, in this case, you may need a partnership agreement. The bank also demands this document at the time of opening your business bank account. This document contains all the information regarding your business, which shows how the responsibilities are shared between two parties. Moreover, this also includes how the business runs and who will make the decisions. The bank wants to confirm whether both parties are on the same page or not. After knowing this, the bank confirms how much they are committed in terms of working together.
Certificate of Existence
This is the document that verifies your business legally or ensures you are allowed to sell your services or products officially. This certificate helps companies to represent themselves as being in good standing with the government. Furthermore, it also shows that your company is fulfilling all the legal requirements. The certificate of existence should be renewed annually to maintain the corporation’s active status. Timely renewing your certificate will save your business from facing any fine or penalty. By doing this, you are more likely to focus on your business with complete dedication.
Proof of Address
Opening a bank account in the US requires proof of address. It confirms that your business has the physical address, or where is it located? By using this, banks can track your location in case of any mishap or protect themselves from any kind of fraud. In addition to utility bills, lease agreements, and official government letters, official documents can be used as proof of address. From this, banks can identify that your business is legitimate after confirming your location.
