A small business account is an account with a bank or other financial institution designed specifically for businesses with fewer than 100 employees. These accounts have some important benefits that can make them a valuable tool for businesses of all sizes.
Tiny business accounts offer lower fees and interest rates than personal accounts, and they often come with additional features, like online banking and mobile banking. They also provide access to special discounts and financing options.
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To get started, you first need to figure out whether your business qualifies for a small business account. You can check this by contacting your bank or other financial institution or consulting an accountant or other professional who specializes in small business finances. Once you know if your business is eligible, you'll need to decide which type of account best suits your needs. There are three main types of small business accounts: checking, savings and loan (S&L) accounts, and credit union accounts.
Checking Accounts: A checking account is the most common type of small business account available from banks and other financial institutions. It's perfect for businesses that need quick and easy access to money. Checking accounts typically come with a low monthly fee, and some banks offer free online banking and mobile banking services.
Savings Accounts: A savings account is perfect for businesses that need long-term storage of their money. Savings accounts usually have low or no fees, and many banks offer tiered interest rates that increase as your balance grows.
Loan Accounts: A loan account is a great option for businesses that need to borrow money quickly. Loan accounts come with interest rates that can be high, but they also come with protections, like insurance against default.
