Setting Up A Bank Account

Setting up a Business Checking account should be one of your next steps in getting your business up and running, especially if you plan on generating revenue rather early in your start-up. Even if not, having initial start-up expenses flow from a business account will come in handy during tax time.

Most banks have various tiers of business checking accounts, so you'll want to have a good idea of what your monthly transaction volume and balance figures will look like over the next 6-12 months while shopping for the best fit. Here are a few things to keep in mind while shopping for the business checking account that best fits your needs:

• Monthly Transaction Volume - Does your business require many deposits and withdrawals to be made within the checking account each month? If you will be travelling frequently, for example, daily food costs, subway/bus/taxi fare, gas costs, and hotel costs could add up to a good number of transactions month to month. Banks usually allow a set number of transactions within the checking account, 200 for example, for free before charging for each additional transaction. You'll want to check to see if the bank you're considering has such a policy in place, and if so, the transaction threshold and fee charged for each additional transaction.

• Expected Monthly Balance - How much do you expect to keep within the account at any given time? This is an important consideration as well since some banks will charge a maintenance fee if the balance of your account is lower than a specified level.

• Number of Signers - Will you need more than one person to be authorized to sign off on checks or access the account? If so, you may need to consider a higher tier checking account than the basic business checking feature that the bank offers.

• Payroll Needs - Will you have employees soon? If so, some banks offer payroll services as well.

While visiting each bank's website will be the quickest way to gather information, also take time to visit the local branches of banks that you are are closely considering to guage their level of customer service.

Once you decide on a particular bank with which to do business, you'll need to provide them with your Tax ID and pertinent business filing documents to confirm that you are authorized to open an account on behalf of your company.