What You Need to Know Before Opening a Business Checking Account

You’ve got a great idea for a business, and you’re ready to hit the ground running. But, before you can bring in the big bucks, it’s important to set up a business checking account and get your finances in order. Here are a few questions you should ask before opening a business checking account.

How big is your business?

There are slight differences in accounts, depending on the size and purpose of your business. If you are just starting up or have fewer than 300 transactions per month, you’ll likely want to explore opening a more basic account with minimal fees and free cash transactions. If your business is more established, you may want to open an account that lets you sweep any balance that exceeds a pre-determined threshold into an interest-bearing money market account. And, for you non-profit business owners, there are business accounts with no monthly maintenance fees and unlimited monthly deposits.

What kind of payments do you want to receive?

If you want to collect credit or debit card payments from your customers, a business checking account is a must. Credit and debit cards are the most convenient and common way people pay for goods or services, and a business checking account gives you the ability to approve (or decline) those payments. Just be aware which types of cards your business checking account will allow you to process.

What kind of a financial partnership do you want?

If you anticipate expanding your business in the near future, it’s a good idea to partner with a credit union that has your business’ best interests in mind. Look to partner with a credit union that can offer financing and identify best practices to help your business grow. Establishing a relationship with the right financial partner from the get-go can be invaluable in accomplishing your business’ long-term goals.

Why is a business checking account so important?

When it comes to tax time, the importance of ensuring that your personal and business assets are separate can’t be understated. Having a separate account is required for some businesses. And for others, let’s just say either you or your tax accountant will be much happier you made the decision to open a separate business account. Plus, having a separate account lets the IRS know that you mean business, and it shows your customers and business partners that you are professional and here to stay.

Whether large, small, or not-for-profit, a business checking account can help your organization grow. Just be sure to do your homework and partner with the right credit union – one that makes it their business to ensure that your business succeeds.

News & Events
Nov 14, 2017 / Visa Cards

Orange Platinum is the new color of credit card rewards. Utah First Credit Union’s Orange Platinum Visa is rewriting the playbook on credit card benefits. Of course, it comes equipped with every other benefit a Utah First credit card has to offer, but there’s more than Orange Platinum...

Nov 06, 2017 / Money Tips

Believe it or not, the seeds of healthy saving and spending habits are planted at a young age. And, a family budget that involves your kids in important financial decisions is a great way to instill the value of money and the concept of careful, considered investing. So, forget about the...

Nov 02, 2017 / Money Tips

Big expenses are a fact of life, but that doesn’t mean they aren’t daunting. Parting with your hard-earned income isn’t easy, which is why it’s important to be prepared for life’s more expensive moments. Here are 5 budgeting tips to consider before making a big purchase. Does it...

200 E South Temple
Salt Lake City, Utah 84111
Monday - Friday: 9:00 am - 5:30 pm
View In Google Maps
Routing & Transit Number: 324079500
NMLS # 446035

Utah First Federal Credit Union is federally insured
by the National Credit Union Administration.