Guide to Starting and Operating a Small Business | 2018 Guide to Starting and Operating a Small Business - Page 61

Some business owners open a business account at the same bank they use for their personal accounts. Rates, fees, and options vary from bank to bank, so you should shop around to make sure you find the lowest fees and the best benefits. Here are things to consider when you're opening a business checking or savings account: • Introductory offers • Interest rates for savings and checking • Interest rates for lines of credit • Transaction fees • Early termination fees • Minimum account balance fees • Here are things to consider when you're opening a merchant services account: • Discount rate: The percentage charged for every transaction processed. • Transaction fees: The amount charged for every credit card transaction. • Address Verification Service (AVS) fees. • ACH daily batch fees: Fees charged when you settle credit card transactions for that day. • Monthly minimum fees: Fees charged if your business doesn't meet the minimum required transactions. • Payment processing companies are an increasingly popular alternative to traditional merchant services accounts. Payment processing companies sometimes provide extra functionality, like accessories that let you use your phone to accept credit card payments. The fee categories that you need to consider will be similar to merchant services account fees. If you find a payment processor that you like, remember that you'll still need to connect it to a business checking account to receive payments. Get documents you need to open a business bank account Opening a business bank account is easy once you've picked your bank. Simply go online or to a local branch to begin the process. Here are some of the most common documents banks ask for when you open a business bank account. Some banks may ask for more. • Employer Identification Number (EIN) (or a Social Security number, if you're a sole proprietorship) • Your business's formation documents • Ownership agreements • Business license 59