Setting Up Internet Bank Accounts for Businesses

Virtual banking for small businesses is the key to success
By Eisla Sebastian, Writer/Emergency & Disaster Management Consultant KTS Productions For over a decade now, individuals have been using Internet bank accounts to make their lives easier. However, businesses have been slower to accept and utilize the conveniences of online banks. In an age where businesses are trying to streamline and automate as many business activities as they can, it only makes sense that this philosophy should also be applied to their banking activities. 
 

An Internet bank can offer businesses of all sizes:
 
1. Internet checking accounts.
2. Internet savings accounts. 
3. Other types of online banking accounts and services such as CDs, IRAs and money market accounts. 

After identifying the types of accounts you want to open, your next step is to find online banks that have a good reputation and that are FDIC insured. To sign up for a business bank account with an online bank you will need to:

1. Fill out an application for a business bank account.
2. Submit tax ID number, a copy of business license, incorporation documents and financial reports.
3. Make your initial deposit.

Select an Internet bank

Before you can open an online bank account you need to select an Internet bank.
Try: Bank of America and Wells Fargo Bank have both been rated as top 10 online banks by "Kiplinger's Personal Finance Magazine."

Complete online banking account application

Complete your business bank account application online by filling in general information about the location of your business, type of business you own, profitability of your business, etc. You may also be asked questions about your company's tax ID number and you may be asked to submit financial statements for your company.
Try: If you don't already have an EIN to set up your business bank account apply for one on the IRS website. Visit Microsoft Office's website for interactive templates for financial statements. Bookkeeperlist also offers a great template you can download and use.

Deposit money into your Internet bank accounts

The final step for setting up an online bank account is to fund your account. This can be accomplished electronically or manually.
Try: If you don't feel comfortable mailing in your initial deposit you can make your initial deposit via Western Union or via your online bank's wire transfer link. Use Bank of America's wire transfer services or Wachovia's wire transfer services. 

• It is important that you understand the risks involved in using online banking systems before you sign up for an account. Protect your money by taking proper precautions such as installing firewalls and changing your password frequently.