Steps To Open A Business - Business Structure

Don't forget to visit your local Secretary of State website for further information on the requirements for operating a business in your state. You may also need to obtain a business license, depending on the industry that you are going into. Make sure you speak with your attorney and/or accountant to decide which Business Structure is right for you.

If you plan to apply for Equipment Financing or any other type of Small Business Financing it is a good idea to open a business bank account.

Sole Proprietors are generally ok with operating their business from a personal bank account when it comes to financing.

If you are not a sole proprietor, the financial institution will most likely want to see that you have a business bank account. This not only helps validate your business but the lenders will also want to see what your average bank balance is and if you have any over-drafts on the business account.

If you are a startup business you should try to open your business bank account with at least $1,000. The bank will also need to see proof of ownership of the business with either your filing information from when you created your business structure/entity, or your tax ID number, also known as EIN (Employer Identification Number).

You should contact your local IRS Field Office to apply for your tax ID number if you are a sole proprietor and have not already done so.