This week in the Freedom Friday blog we're continuing the series the 10 Steps to Starting a Small Business in Oklahoma. If you missed the blog posts for the previous steps, I've provided links at the end of this blog post to help you catch up.
In today's Freedom Friday blog, we're going to cover the sixth step in starting a small business in Oklahoma, which is to open business bank account(s). If you are a small business owner, it is important to keep your business assets separate from your personal assets. If you mix your business assets with your personal assets, you will open yourself up to liability if your business gets sued. This is another reason why it is important to maintain formalities with your small business. If your business gets sued, you do not want your home, your car, or other assets in your own name are at risk through “piercing the corporate veil.” An important step to protect your personal assets is to keep separate bank account(s) for your small business.
As a small business owner, you will want to open at least one (or more) business bank accounts. In order to open a business bank account, you will need your EIN number, a copy of your articles of organization or certificate of incorporation, and possibly additional paperwork required by your bank. Some banks will require you to produce your operating agreement or bylaws in order to open a business bank account. However, many banks require a “resolution” for you to open your business bank account. You might need to draft the “resolution” yourself, or the bank may draft one for you using their required format. I would shop different banks, and inquire about the various fees and requirements that different banks would have; a bank that drafts the required “resolution” for you is usually “friendlier” to work with than a bank that requires you or your attorney to draft the “resolution” to meet their requirements.
Lastly, you'll notice that I mentioned you should open at least one (or more) business bank accounts. There are some good reasons why you might wish to open more than one bank account for your small business. At the very least, you need to open a checking account. You might also want to open a savings account for your small business. However, if you're interested in implementing “Profit First” ™ or any kind of bank account budgeting cash management system for your small business, you will need to open multiple business bank accounts. As always, it is best to consult with an accounting professional to help you with these decisions.
If you've missed the blog posts for the previous steps, here are some links to get you started:
Step 1: Develop a Business Plan
Step 2: Gather Your Team
Step 3: Choose Your Business Entity
Step 4: Draft Your Operating Agreement or Bylaws
Step 5: Apply for an EIN
If you're interested in starting a small business anywhere in Oklahoma, or if you have a small business and you are looking to grow, please feel free to contact me at [email protected]. For more information about Liberty Legal Solutions, LLC, please visit our website http://www.libertylegalok.com.