When you’re looking into business banking in Maryville, you’ll want to determine what type of business account is right for you. Maryville banking centers like Foothills Bank & Trust offer several different types of accounts. Different account types are suitable for different kinds of businesses, and choosing the right one will ensure that all of your needs are met correctly. When you sign up for your account, a professional banker will work with you to figure out how to best meet your business banking needs, but it helps to do a little bit of research beforehand. Here’s some basic information about the types of accounts that banks offer for business owners.
Types of Business Bank Accounts
Business banking is different from personal banking. To qualify for a business account, you’ll need to submit some additional paperwork to prove that you’re operating a legal business. Here is some basic information about the main types of accounts that are offered for business owners.
- Small business checking accounts are designed especially for small businesses. Small business checking usually has a minimum account deposit of $100. This is more than banks usually require for a personal account, but checking accounts specifically for small businesses have special features that personal accounts do not. The $10 monthly fee is waived with a minimum daily balance of $300. Up to 400 items are processed free per statement cycle. For a small local business, this account type is generally ideal.
- Commercial checking accounts offer more flexibility than small business checking accounts. They generally don’t have a minimum balance. Businesses with this type of account can write unlimited checks at no charge.
- Business interest checking is designed for certain types of businesses. This type of account is ideal for sole proprietors, non-profit organizations, and companies affiliated with the government. A daily balance of $1000 is needed to offset the $10 maintenance fee.
- Non-profit interest checking is designed specifically for nonprofit organizations like churches or clubs. They have unlimited check writing, and with no monthly fee or minimum daily balance.
The Advantages of Business Bank Accounts
Business owners are not always required to use business accounts, and some small businesses and sole proprietorship use the owner’s personal account instead. However, there are some advantages to signing up at a business banking center in Maryville for a business account. It looks more professional, and many customers feel more comfortable writing a check to a business than to an individual. A business account can also help you build your business’s credit, while protecting your personal credit. A business’s credit rating is different from that of an individual, and keeping the two types of credit separate can help you protect own personal finances. Overall, it’s good for your business to find the ideal account type, and keep it separate from your personal accounts.
