Let’s Make it Official: Setting Up a Small Business Bank Account

Opening a business account with a bank should be one of the last things you do before you launch your education service provider business. Banks offer businesses many of the same services with which you’re already familiar — like checking accounts, savings accounts, and credit cards. Banks also offer merchant service accounts to businesses. These accounts expand the options available to you when accepting payment from customers to include credit and debit card transactions. 

A merchant service account might not be the right fit for you. Though many businesses enjoy using a merchant services account to collect payments, just as many are opting to use payment processing companies like Square or Stripe. These are no substitute for a business bank account, but consider them as an alternative to merchant service accounts when you’re shopping for that service. 

Before launching, Arizona education service providers should register with ClassWallet. Many of your future customers will be one of the tens-of-thousands of families that use Arizona’s Empowerment Scholarship Account (ESA) to pay for education services. Arizona’s ESA program distributes funds through ClassWallet, a virtual wallet with a debit card that’s the only way ESA parents can pay for services using the program’s funds. Registering your ESP with ClassWallet is an essential for every Arizona ESP and can be done quickly, simple, and online. 

Business accounts do more. Depending on the business type you decide to form, your assets, your liabilities, and your credit history, banks offer business account owners cash flow through credit, separation between personal and business accounts, and the flexibility to have other people like your employees and partners the ability to conduct transactions.

Just like personal accounts, business accounts aren’t all built the same way. Because opening a business account is one of the last things you’ll do before you launch, it can be tempting to rush this last step. Don’t rush! When you’re deciding on a bank to do business with, remember that these accounts are often a long-term relationship that not only is a bit of a headache to change later, but one you’ll be paying for as long as you do business. So shop around and compare the services you qualify for before making a decision. Consult your business plan to get a picture of the services you need from a bank, and find one that fits your needs.

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