No paperwork, no bank lines, no headaches. NorthOne lets you apply for a Business Account in as little as 3 minutes (based on real-life user tests). Traditional banks often require a lot of unnecessary paperwork and weeks of waiting just to open a business account. The only fee you pay is $15 to send or receive a wire payment. NorthOne charges a flat rate of $10 a month for access with no small print and no hidden fees. A bank account could cost you nothing to open but end up costing your business thousands in hidden fees over time. Do yourself a favor by asking yourself the following questions before deciding on a business account: How much will it cost? Just because you use a certain bank for your personal account doesn’t mean it’s the best option for your business. Small business owners and sole proprietors have historically been overlooked by big banks that don’t cater to their needs. You need to find a bank account that works for your business. Now that we’ve outlined why you should have a business bank account for your sole proprietorship, let’s get into how you can open one in 3 easy steps. How to Open a Sole Proprietorship Bank Account For example, getting your customers to make a check out to your business account instead of a personal account will make the transaction feel more legitimate and establish trust. Appear professional to your customersĪ business bank account can help you build credibility as a business. Having a business bank account will be vital to this process. In all cases, you’ll need to demonstrate your business’s earning potential. You might choose to take out a bank loan, open a line of credit, or even apply for a grant. If you’ve got big plans for your business (and why shouldn’t you?) you might eventually need to look into some small business financing options so you are able to grow. This is much easier to do with a business bank account. It’s also easier to claim taxes as sole proprietor vs. One of the easiest ways to limit stress around tax time is by keeping a clean and organized record of your business finances year-round. Tax time can be extremely stressful for people who work for themselves no matter how small their business may be. This will save you time and money on bookkeeping. Having a separate bank account for your business lets you easily keep a record of your business transactions without them getting mixed up in your personal transactions. Here’s why: Save time and money on bookkeeping Legally speaking, you don’t need a separate business bank account as a sole proprietor but it is highly recommended. Why Sole Proprietors Should Open Business Bank Accounts All of these payment processing apps can be integrated with a NorthOne account. Some popular companies to open a merchant account with include Square, Stripe and PayPal. This account processes your payments and deposits them into your everyday business account. If your business accepts credit card payments you’ll need a business merchant account. That way you can organize your money while still having it all in one primary account. The alternative option is to get a primary business account that comes with Envelopes, a feature to designate purposes for funds like payroll or rent. Once a business is doing well and has enough cash coming in every month to cover expenses, you might opt to put away money for your business’s future in a business savings account. It will let you do all the basics like make payments and manage your cash flow. This is typically all you need when you’re just starting out. What is a Sole Proprietorship Bank Account?Ī sole proprietorship bank account is the bank account you’ll use to separate your business finances from your personal finances and track all your payments and expenses. Typically, there are 3 types of business bank accounts: Business checking account Here’s everything you need to know about opening a business bank account for your sole proprietorship. And when you start making serious bank, you’ll need a business bank account. All sole proprietors and freelancers start small but if you’re willing to put in the work you could be making serious bank in no time. First of all, congratulations! Being your own boss is hard work but it’s also very rewarding.
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