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blog (coffee shop)
by One of the first steps in getting a business rolling is establishing "business banking." After securing a state-issued Franchise Tax ID from the State Comptroller (in Texas, at least), and then a Employment Identification Number (EIN) from the Internal Revenue Service, a corporation can open checking and savings accounts specifically tagged for business (i.e., not available to non-businesses).
The issue then becomes what accounts to open at which bank. Given a particular business is very small (i.e., any restrictions on number of transactions won't be a problem, but account balance requirements could be) what's a simple and effective setup? Here are some parameters:
- Checking, savings, and eventually investment accounts needed.
- Avoiding fees is key.
- The higher the interest rates, the better.
- Banking will likely be done exclusively online.
- Interaction with PayPal, Amazon and AdSense accounts is required.
- Interacting with other bank accounts is required.
- Accepting credit cards is a plus.
- Analysis/reporting tools are a plus.
- Consolidated (i.e., on one site) account access is a plus.
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I ran across a Compass Bank Promotion, including:
- Free Visa business check card
- Free "BusinessClass Online"
- Free bill pay, compatible with QuickBooks, Quicken, Microsoft Money or via Compass Web
- 500 items processed free each month
- Free personal checking account with free ATMs and rebates of other banks' fees
This seems similar to what other banks are offering. Bank of America specifically had an offer almost identical to this, except they listed the personal checking account as being a requirement, not a "bonus."
In any case, it isn't exactly for what I'm looking. I want a bank with online-only, high interest bearing checking and savings, with the ability to expand into investments. ING seems close, but they don't have business checking...
You could always use ING and set up a linked account with another bank for checking. From the savings account FAQ, "At your request, money is transferred electronically between your Business Savings Account and your linked business checking account."
I looked at doing that, but ideally I'd like to have everything all in one bank. Unless I find something better soon, though, I will likely accept dealing with multiple banks and go with something similar to my personal banking setup (i.e., traditional checking account linked to online-only accounts with high interest rates).
It did sound good to me but there is a problem with the application.
Looks like the do not offer it to all States online and you need to go to a branch office to sign final papers.
After looking more closely at 7-10 of the bigger name banks, I was able to identify only two truly free business checking options: HSBC and WaMu.
Others, such as Wells Fargo, Bank of America and Compass Bank, all had conditions to avoid the fees - some of which weren't apparent until getting into the application process.
Upon second investigation, I'm not sure if Compass Bank's "free checking" actually does have qualifications to avoid fees ... but not being able to tell for sure is just as bad as having fees - maybe worse.
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Was hoping... by Anonymous :: NR0 :: on 20 November 2007
this would be advice on where to look...
But looking into this Etrade.com seems to be a good deal, where if you have more than $5,000 in your account it will not charge you for ATM withdrawal and will refund any ATM fee charged to you by the bank that you do withdraw from, see (https://us.etrade.com/e/t/estation/pricing?id=1209020001#__highlight)
Also you have a decent interest rate of 4% as long as you are over $5,000 and avoid the $15 dollar fee (https://us.etrade.com/e/t/banking/checking)
PayPal, Amazon and AdSense can be linked to pretty much any bank account, including Etrade. PayPal will allow you to process credit card transactions...
At least this is what I was thinking... would be grateful to see what other people are thinking...