Bank Accounts

Our business is in Texas and we have an Assume Name Certificate (Doing Business As)to do business within our county. I wanted to know what documents are needed besides the certificate (if any)to open a business bank account so our customers can right checks to our business name and not to us?

 

If your going to employ others on a regular basis, the government wants/requires you to have a FEIN: Federal employer identification number. (38#) It allows them to track taxes paid, etc. It helps keep your business $ tracking separate from your personal money.<p>This number will be attached to your bank account instead of your SS number.<p>Otherwise you should be all set.<br>

 

How do you get an FEIN?

 

You apply for it to the federal government. It's a simple form. My attoney did mine when we incorporated, but it's a similar process for sole proprietor.<p>Call you accountant in the a.m., he can give you the details and print the form off his computer for you.<p>I think you can fax it in and they give you an unofficial number promptly while they process the information.<br>

 

Thanks for your help...<br>I wish I could call my accountant but we are just starting out and there is just two of us with about 10 accounts (all residential)so we do not have an accountant or any other employees at this time. We have been recieving cash but someone finally wrote a check out to our business and we do not have an account yet. We were going to open account (of course) but now we must do it sooner than expected. We figure we will have ot hold the check untill we can get an account. Also my sister has a part-time business of her own as a beauty consultant and has her own account for her business but did not require anything I guess since the name of her business is her name.

 

You can open a small business checking account with your social security #. It will be a D.B.A. or John Doe, &quot;doing business as&quot; procut lawn maintenance. It will be higher than a standard account but you can do it and not have to get the federal I.D. # Use the check that was written to your business name to open the account.. I don't think you'll have any problems.<p>Homer

 

I think you should go down to your local tax office and go ahead and get a tax ID number. This number will be a business ID that will name your business and give you a tax number so you can purchase some things tax free then pass on to the customer. These products might fertilizer of pest controls. Also most banks require this number for business accounts. Having a business account will provide some extra features that regular account won't. Also, remember to keep your account at a seperate bank than your personal accounts. I have heard horror stories of bank deposists and funds getting crossed with the different accounts. This wouldn't be a problem is they were both personal or both business accounts but remember IRS you must keep them seperate.

 

Hang on a second here....<p>To purchase products without tax you need a SALES TAX exempt number. That is from each state and totally different than a FEIN number.<p>Like Homer said, you do NOT NEED a FEIN (38#)to open an account, it's only a recommendation if you plan to employ others.<p>It doesn't sound like you're at that phase yet, so just use your SS number.

 

LoneStar, check with a few banks before opening an account. I started with a bank that treated a small activity business account as a personal account. They defined small by certain number of deposits /mo, # checks /mo, etc. A regular business account will entail charges for deposits, checks, and other activity.<p>Also in our area, some credit unions have business accounts without the fees of commercial banks.<p>----------<br>Jim<br>North central Indiana

 

Thanks for everyones help. We opened an account today after calling around. We also gained a customer at the bank. She was the manager of the bank. Thanks again everyone.