There are many benefits of business bank account opening, not the least of which includes accessing the services your business needs to grow and make more money.
In this article, we’ll share the specific benefits you can unlock and how to maximize these benefits with a business bank account.
We’ll also touch on another important reason why you should separate your personal and business finances as well.
Of course, if you’re looking for more free resources to navigate financial services, corporate banking solutions, and features you can click here right now.
Feel free to use the table of contents to jump ahead to the most relevant sections.
Table of Contents
- What Are the Benefits of Business Bank Accounts?
- Why Should I Open a Business Bank Account?
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
What Are the Benefits of Business Bank Accounts?
In addition to sending and receiving payments in the name of your business, opening a business bank account can offer a range of other benefits as well, including:
- Access to online payment processing
- Unlocks payroll and batch payments
- Integration with accounting and management systems
- Integration with international transfer services
- Greater support for cross-border transactions
- Clear access to (and management of) accounting records
- Clear separation of accounts for preparation of taxes
- Ensures legal compliance (depending on business structure)
- Provides a clear separation of personal and business liability
Of course, if you are just starting out and have not yet registered a business, you may be wondering whether all of the above benefits are needed. The short answer is, it depends.
But, if you have registered a company and you plan to grow your business, having a dedicated business bank account in the name of your company is necessary.
Businesses who are seeking additional business solutions, like commercial bank fixed deposit rates, can use this link to see if this type of service might be worth considering for their business type.
Alternatively, if your business is constantly receiving payments from customers and sending payments to vendors, it’s important to know what an operating account is as this type of account could be an important tool to your business activities.
If this is your first time visiting GlobalBanks, don’t forget to download your FREE Business Banking Starter Guide. It’s designed to help your business find and open accounts with the services you need around the world.
Why Should I Open a Business Bank Account?
One of the most important reasons that a business should have a separate bank account from its shareholder(s) is to ensure a clear and separate existence from the shareholder(s).
This separation is especially important from a liability perspective, because if this separation does not exist, courts may claim that the shareholder(s) is legally liability for any claims or liabilities of the company.
This is something that can happen in the United States in particular, where courts may consider shareholders liable due to the “unity of interest and ownership”. Essentially, the “unity of interest and ownership” means that the shareholder and the corporation are unified under one personality.
If this is something you are currently dealing with, you should consult qualified legal advisors to help you navigate the situation.
For everyone else, you should consider opening separate bank accounts. This will ensure that your personal and business banking activities are separated.
Frequently Asked Questions
Below are three of the most common questions that we receive from people looking to better understand business banking. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
How Do I Choose Which Banks to Open a Business Bank Account With?
When choosing which banks to open a business bank account with, it’s important that business owners consider the specific services, currencies, fees, and restrictions of each bank. Additionally, clearly understanding the business requirements, transaction volumes, and jurisdictions involved will ensure that an appropriate bank is selected to meet these parameters.
Where Can My Business Open a Bank Account?
Businesses can open bank accounts in a wide range of jurisdictions. However, the specific options available to your business will depend on where the business is registered. But also on where the business operates, the industry it operates in, and the profiles of the shareholders. Of course, there are many other considerations as well, which we explain in detail in GlobalBanks IQ.
Is It Difficult to Open Business Accounts?
Opening a business bank account can be difficult. This is especially true if you do not know which jurisdictions, banks, branches, and even bankers to approach for account opening. This is important if your business is engaged in high-risk business activities, is registered offshore, or is owned by individuals with high-risk profiles.
Do You Want Help Opening Bank Accounts?
If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.
GlobalBanks Insider is a dedicated account opening solution that involves direct support from our team and direct introductions to the banks of your choosing. It gives you instant access to the…
+ Direct support from a team of banking experts
+ Direct introductions to your desired banks
+ Answers to your most pressing questions and challenges
+ Expert insights on which banks to choose & why
+ Plus FULL access to our entire suite of account opening tools and intelligence!
And “yes!” GlobalBanks Insider is designed to help foreign and non-resident individuals and companies open bank accounts.
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