Opening a small business checking account

You did it! Your hobby has turned into a side hustle. Or maybe you’ve finally opened that little storefront you’ve always dreamed of. The bottom line is this: You’re now a small business owner and need a small business checking account to manage your daily business operations — and you prefer to keep your money local.

We chatted with Janet Lester and Nick Vigil, both Business Banking Relationship Managers at Elevations Credit Union, to learn more about small business checking accounts, who needs them, how to get started and how business owners benefit from this option.

What is a small business checking account?

Simply put, it’s a cash management solution that small business owners use to receive funds (such as income from sales or small business loan money) and distribute payments related to their business. This might include purchases related to the daily operations of their work or the rental of office space.

At Elevations, we offer two solutions, a Business Checking Account or a Premium Business Checking Account. The first is created with solopreneurs, start-ups and smaller businesses in mind. The second is geared at midsize to large businesses. We’re happy — and ready — to be your financial partner as your business grows!

And since we know small business owners love to be efficient with their time, we’ve created an online application that’s accessed on the Elevations website or by a private secure link provided by a banker directly to the small business owner.

“The way things are trending, it’s going more digital. Our account-opening process has been streamlined through our online account-opening platform,” Vigil explained. “Save your time and go online. But if you like to go face-to-face and shake hands, I’ll have my hand out ready to greet you.”

Who needs a small business checking account?

Anyone operating a small business should consider this type of account. This might include contractors, part-time workers, start-ups or anyone who is “all-in with their endeavor,” according to Lester.

She said she’s happy to sit down with the business owner and review their business plan and make suggestions for additional resources, such as small business loans, to help the company grow.

“I would almost always advocate for opening a business checking/savings account even if you do not know you would need one,” Vigil added. “For these first-time sole proprietors and entrepreneurs, just having a business account helps their ego and possibly helps solidify their cause for venturing out on their own. It’s tangible . . . it’s real for them when they open their first business account.”

Sometimes that little bit of validation is all it takes to grow from a weekend warrior to a thriving full-time business owner.

You can get the document here.

Who qualifies for a small business checking account with Elevations?

We offer a Business Account Opening Checklist to make it simple to hit the ground running. Be ready to provide basic business information and documents including your Tax ID Number (EIN or SSN for sole proprietors) and bylaws if the business is a nonprofit.

“The business would have to be registered with the Colorado Secretary of State and the business would also have to be located within our footprint,” Vigil said.

This includes the following counties: Adams, Arapahoe, Boulder, Clear Creek, Denver, Douglas, El Paso, Gilpin, Grand, Jefferson, Larimer, Park or Weld.

Opening a small business checking account also requires a one-time $5 fee, which is waived for nonprofits, and an opening deposit of $100. Members also enjoy free Elevations Visa® Debit Cards for authorized signers and free Mobile Remote Deposit Capture (mRDC).

“The banker will also want to learn why you are making a banking change. What services did you need at your previous bank that you did not receive and why? And, how will Elevations be able to support your aspirations and growth?” Lester said. “With every business account at Elevations, there is a specialized banker assigned to the account. This is so when the business owner needs guidance, loans or additional services, they have a local point of contact.”

After all, we want you to enjoy your business banking experience and know we are here to help you along your journey.

What are the business benefits of opening a small business checking account?

The first high-level benefit, that your tax preparer loves, is the separation created between your personal and business financials. It’s a great way for a new small business owner to get organized, Vigil said.

“When they manage their books at the end of the week or end of the month, it is much easier to organize all the transactions done for the business by having a business account versus mixing business transactions in with the personal transactions through a personal account,” he added. “In my experience working with business owners, saving them time is key. Having personal and business accounts separated will not only save the owners time, but also their certified personal accountant (CPA) or bookkeeper.”

Lester also suggested small business owners connect with local CPAs for advice to learn the various business structures and when it’s time to elevate from sole proprietorship to a limited liability corporation (LLC).

“These decisions are based on a number of circumstances including growth, liability, expansion, employees, etc.,” Lester said. “Most business bankers have community connections to provide these resources to the member. Understanding what business expenses they can write off or depreciate becomes critical for businesses that use specialized equipment for their trade and services — and a reliable bookkeeper or CPA can provide guidance.

Are you ready to learn more about how a small business checking account can save you time, streamline your business and make tax reporting easier? Contact one of your Business Banking Relationship Managers today. We’re excited to help you move your Colorado business forward.

Federally Insured By NCUA


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