Plan Before You Open a Corporate Bank Account
Opening a corporate bank account is necessary and quite simple. You'll need a few documents for the bank, but this paperwork is often required for other corporate necessities. You and your stockholders need to make a few decisions and put them in writing so the bank can open the account(s) you want with the signing authority you desire.
Instructions
Open a Corporate Bank Account
1. Get your certificate of incorporation, which is issued by the secretary of state in your area. This proves that you have filed your corporation papers properly in your state and you have been approved to operate as a legal business entity.
2. Receive your Federal EIN (Employer Identification Number). Documentation you receive verifies that you are registered with the IRS and the government as a business entity. You don't need to be a corporation to receive an EIN; you could also be a partnership, LLC (Limited Liability Company), or even a sole proprietorship. But, you need your EIN to be recorded with your bank, just as you would have your Social Security number attached to your account if you were opening a personal account.
3. Gather up your corporate seal. Give yourself some lead time as the actual metal corporate seal can take a while to create. Many important documents require that you and your corporate officers affix the corporate seal along with signatures. The electronic age may be here, but many legal documents still need to be "sealed" to be executed.
4. Have at least one photo identification card or document ready to sthe bank customer service representative. The Patriot Act, passed in October 2001 after the World Trade Center tragedy, requires all people opening business or personal bank accounts to provide conclusive evidence of their identity. Your bank will make a copy of your proof of identity to include in your account file.
5. Prepare a corporate resolution. This may be only the first of many corporate resolutions you'll create in the future. This document will specifically state the individuals and officers permitted to act for the corporation in banking matters. These people can sign checks, open accounts, transfer money, invest funds and perform all other banking necessities under their signature(s). You may give these individuals complete authority to act for the corporation, or authorize one or more people to commit the company in some cases, but not others. The corporate resolution advises the bank of your authority wishes and its responsibilities to respect them.
6. Bring these documents to your favorite bank and ask them to open the account(s) you want. The authority and authorized signatures you give them will apply until the corporation submits another corporate resolution making changes to this information. Additional accounts or expanded/reduced authority can only be authorized by submitting a revised corporate resolution.
