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The Necessity and Advantages of Having an Online Business Checking Account

The Necessity and Advantages of Having an Online Business Checking Account

The Necessity and Advantages of Having an Online Business Checking Account

A Business Checking Account helps a business owner manage numerous financial issues that they may face in the course of business transactions. It can track incoming profits as well as outgoing payments and expenses. A complete report is readily available to the business owner for all their transactions at any given time, which can be used for a variety of purposes. Most importantly, these records can help when it comes the time to pay taxes. It also proves extremely beneficial in case of an audit of your business. An Online Business Checking Account provides the business owner with online access. They can access all of their transactions at the touch of a button.

Elimination of face-to-face

Online Business Checking Account eliminates the need to go visit the bank, and the need to wait in lines. All of the information can be accessed from any place in the world where you have access to internet. Moreover, the transactions can also be done online. You can just sign in to your online checking account for business and check to see if you have received the payment you have been expecting. Or you can send a payment to whichever party you wish in just seconds.

The Credibility of a Business Corporation

By having an online business checking account, your business looks more credible to the investors, customers and partners. The customers and suppliers can send you payment directly into your account through online banking, and not into your regular personal account. Similarly, you can also pay for the business expenses through the online checking account for business. It provides a clear separation between the personal and business finances, which looks good in government agencies’ books, especially the IRS.

Proximity Access

If I were in your place, I would choose and Online Business Checking Account near me. It will give solve the proximity issue. And in case the link is down, it will also prove it easier to access the bank’s services manually, instead of your preferred online method.

The Fee Waiver

Online Business Checking Accounts have a monthly fee, just like the personal accounts, however it can be waived if the account holder individual or corporation maintains a certain minimum balance requirement.

Legal Advantages

By having separate accounts for personal use and business, a business owner finds it easier to deduct business expenses for taxes. In case a legal action is taken against your business company, you can find better protection and better chances of making a proper defense for your case in the court of law. In case a lawsuit goes against you, then only your business assets are put at risk, while your personal monetary assets are kept away and secure from any potential judgements against you.

Keep in Mind

When choosing an Online Business Checking Account, take following three points into consideration;

I) Expenses

Check thoroughly and read the fine print carefully when you consider the charges a bank may deduct from your business checking account in lieu of various banking expenses. Make sure that you can afford those charges and if there are some points you do not understand, ask the account manager all the questions you want until you are thoroughly satisfied. Remember, the terms and conditions sections of banks are kept purposefully long, incorporating hard to understand jargons, and in short script. So thorough investigation on your part is very much warranted. There are some banks which offer Free Online Business Checking Accounts for small businesses that do not charge monthly fees. However, you need to stay within the cash and transactions limits as stated in terms and conditions, to keep total costs low.

II) Assorted Services
There are several banks in the market that offer various other services that may benefit your business operations. Some banks offer merchant services that are specifically geared towards business owners. Some offer business credit cards which you can use solely for business expenses. If you already have a business account, it does not hurt to ask your account manager if they provide the service of Online Banking Account Services, so you do not have to open a new account to access online advantages, and can enjoy all the associated benefits with just your original account. Some banks also offer their clients options to waive monthly maintenance fees if they fulfil certain conditions, such as keeping minimum balance in multiple accounts, including business savings.

III) Interest
There are many banks which offer to pay interest on your Online Business Checking Account. You can certainly take advantage of such options. However, you must ensure that the interest rate is not canceled out by the fees, or other assorted charges. You must read the fine print of terms and conditions for this and go over the whole document with a fine-tooth comb to verify you are receiving more than you are paying.


A few years back, it used to be fairly difficult to open an online business checking account. It required a lot of paperwork which gave an evidence that your business is legitimate and reputable. USA PATRIOT ACT also required the banks to ensure the identity of the account holder, which required even more papa rework, testimonies, and more paperwork. However, the process has become increasingly easy nowadays if you wish to open an online business checking account. While every bank has specific
requirements, essentially, they center around the following;

I) Personal identification (such as; Driver’s License, Social Security Number)
II) Provide basic business information (such as; EIN or Employer Identification Number, Business Headquarters Address)
III) DBA certificate or articles of incorporation

SG Inc. CPA can guide you how to get an Online Business Checking Account in Dallas, Texas. Contact us for more information.