The #1 Thing You NEED to Get Business Funding
What is the number one thing you need to do if you want your business to be considered for funding? Open a business checking account. Make sure you set your business and yourself up for success by doing so very early after establishing your business. There are a lot of traditional lending roadblocks that we can help you work around. We frequently help clients with poor to bad credit. We only require that you be in business for 6 months to be considered, whereas many traditional banks require much longer. However, running your business with a checking account in yours personal name will severely limit your funding options.
Not only will having a checking account in your business name give you more and better options for business funding, it may be legally required. Did you know that certain business types are required by law to do this? if your business is set up as a separate legal entity, I. e. an LLC, LLP, or q Corporation, you are required to set up a separate checking account using the EIN issued by the IRS..
Setting up a business banking account also makes your business look more professional. It shows the world that you are serious about your business. Presenting a unified front, meaning your business name is the same name that is on your credit cards, checking account, and all the other materials you use for your business, will help to generate trust among vendors and customers alike.
Lastly, when tax time arrives, having a business checking account will greatly simplify the process. Intermingling your business and personal transactions all together in one personal account will make things very complicated. Most business owners are required to pay calculated taxes four times per year. It is much easier to calculate these taxes if all of your business income and expenses are contained within one separate dedicated account.
These are just a few of the many reasons that you should set up a business bank account. sometimes as a new business owner it can be difficult to get approved for an account. our bank of choice for new business owners is Novo Bank. This online bank makes things simple, just the way we like it! To learn more about Novo click then learn more button below.