Small Business Banking

Shop around With so much competition, banks are throwing out incentives to lure small business owners, including free checking accounts and even cash payments of $50 or more just to open a business account. Fees and services vary by bank, so you may need to ask some questions.

I recommend:  Surf the Web to save leg work when looking for the best bank for your buck. Bank of America, Wells Fargo, and Washington Mutual are just a few of the biggies who cater to small business. For online-only banking, NetBank offers small business accounts and services.

What's required The information you need to open a business bank account includes basics such as your business name, a DBA ('doing business as' name) social security number and other details. One major piece of information you will need that personal accounts don't require is a government-generated employer identification number (EIN), also called a tax identification number (TIN).

I recommend:  Many banks, such as Wachovia, will list online what they require to open an account. You can obtain an EIN by completing an online application from the IRS, or by calling their toll-free Business and Specialty Tax Line at (800) 829-4933.

Don't forget plastic The world runs on plastic. Having a separate credit card for your business is often required to handle online transactions, and it makes it easier to keep track of purchases.

I recommend:  Bank of America, Citibank and others offer a variety of credit-card options for small businesses that are at varying levels of size and income. American Express is another popular choice because you can accrue Membership Reward points and airline miles, and Amex categorizes all of your purchases in a year-end statement. Just watch for fees!