By Amy Maxfield, Member Service Representative for One Credit Union
If you walked into my office and asked “Why do I need a bank account for my business? And how do I open one, anyways?”, here’s the simple answer: “If you lay the foundation now, it will make your life so much easier later on. Tell me what you do, I’m here to help.”
The in-depth answer is multifaceted.
Separating your business and personal finances serves many purposes from both legal and operational standpoints. By having a clearly established legal business entity, like an LLC or Corporation, you can insulate your personal assets by showing that your business is truly a separate entity.
The first step to opening your business account is to make sure you’re registered with the Secretary of State. Each type of business entity has a unique purpose. For example, if you’re turning your favorite hobby into your full-time income, and you don’t have a business partner, a single-member LLC might be the right fit.
If you’d like some guidance, stop into a One Credit Union branch to chat with someone. We can look at your business structure and talk about what type of business you have; as well as what documentation you will need to open your account.
Opening a business bank account will help you streamline your bookkeeping and accounting, too. When your business expenses and income are kept in one place, it’s easier to keep track of expenses, which clients have paid you, and so on. Doing so also makes for easier analytics and taxes. You can simply pull data to analyze fluctuations in expenses, profits and losses, revenue, etc.
So… you’ve put in the hard work and attention to each detail and have a firm grasp on how you want your business to operate… But does your financial institution know that? When establishing a business, having an ally who has your business’s best interests in mind will make a world of difference.
When you establish your relationship at One Credit Union, you’re not just opening an account – you’re joining the OCU family! We’re committed to learning about you and your business. We look for areas where we can help your business grow and simplify operations. We’ll even provide you with any education you might need through our Business Education Portal!
Whether you’ve lost your debit card or need a loan to fix your food truck… Having a branch to call home and a familiar face to contact will give you peace of mind and support that you’d be hard pressed to find at a bigger “cookie-cutter” financial institution. So, stop into a branch - we can’t wait to meet you!
Member Service Representative | One Credit Union
One Market Place, Suite 9, Essex Junction, VT 05452