Has your business outgrown your one bedroom apartment? You’ve heard the stories of people who are using their garages as their office until their business takes off and then one day they realized that they have outgrown themselves. All successful businesses have a turning point where they’ve needed more space, more capital and more shareholders.
Companies start from one man shop and grow into a full blown corporation. In order for a business to be incorporated, they must first receive a certificate of incorporation from the State. Once a company is incorporated they are given an employer identification number (EIN). These numbers are also given to sole proprietors and limited liability companies as well.
After a company has all these records, they can then open up a corporate banking account. Corporate banking is for businesses that operate with large amounts of money and would require two or more people to sign off on expenses.
Each account should have a corporate resolution which details how the money will be handled and who can sign checks. You want to have two or more signers connected to a corporate account simply for accountable reasons. You do not want to have fraud committed in your business. So be careful who you select to have authority over the bank account. Make sure the corporate resolution gives authority to two more employees.
Checking accounts can be opened with very little money but a corporate account can usually start with a deposit of $2,500 or more. If you are a small business, consider opening up a small business checking account until you continue to grow your business.