At [client] in Virginia, our business banking services are personal. We know that the needs of a freelancer working from a home office are different from those of a franchise owner, or of someone who is about to take his or her company to the global level. That’s why we offer options to fit businesses at every stage of the growth cycle. Your needs will change as your business expands, and [client] will be there every step of the way. We provide:
- Business Checking Accounts [link]
- Business Savings Account [link]
- Group Banking [link]
- Business Debit Cards [link]
- Cash Management [link]
Find a Business Bank Account in Virginia
The type of business banking account you open depends on the needs of your business. Are you looking for a company credit card? Do you want a checking account that will keep your business transactions separate from your personal finances? Or would you like to watch your money earn interest in a savings account, so you can reinvest in your company? There are certain numbers you should look for when choosing a bank for your business accounts.
- Minimum or Average Balance. This is the minimum or average amount you need to have in your business account to avoid fees.
- Monthly Maintenance Fee. If you don’t meet the minimum or average balance requirement, you may have to pay a monthly fee.
- Minimum to Open. You don’t have to be Freddie Mac or the Altria Group to open a business bank account. At [client], you can open your Business Savings Account with just $50!
- Withdrawals or Transactions per Month. You’ll want to know how many times you can withdraw from your savings account per month, and how many free transactions you can make from your checking account before you incur a fee.
Choosing your bank isn’t all about numbers. Virginia offers several opportunities for business owners to earn even more. As a local bank, [client] knows the ins and outs of these programs and can help you maximize the returns on your banking accounts.
The State of Small Businesses in Virginia
What makes Virginia such a great place to do business? Take a look at these numbers released by the Small Business Administration in 2015.
- There are 674,256 small businesses in Virginia in. 78.6% of these businesses don’t have any employees (i.e., are run by the owner).
- 1,453,384 workers are employed by small businesses.
- The unemployment rate in Virginia was just 3.8% in July of 2017. That’s less than the national average of 4.3%.
- 97.8% of employers in Virginia are small businesses.
- Small businesses created over 50,000 new jobs in Virginia in 2012.
- 18,038 establishments opened in Virginia in 2013; 76.9% survived through 2014, a significant increase from the year before.
- 7.3% of Virginia minorities and 10.9% of Virginia veterans are self-employed. It ranks 9th and 10th out of all fifty states in the number of self-employed minorities and veterans, respectively.
- 2nd in labor supply
- 3rd for its business-friendly regulatory environment
- 6th on the list of the best states for business
- 8th in quality of life
Virginia is also ranked in the top third for economic outlook and performance and best state economies. CNBC rankings in 2017 put Virginia as the 7th best state for doing business – it ranks 2nd for workforce, 7th for business friendliness, and 13th for both education and access to capital.
Virginia cities are often found on ‘best of’ business lists. CNBC names Richmond the 3rd friendliest city for small businesses in the country, and Arlington has been called a ‘hotbed’ of entrepreneurs and successful startups.
Why else are businesses flocking to Virginia?
- Workers are productive – we have one of the lowest average worker’s compensation costs in the nation.
- Workers are educated – according to census data, 36.3% of Virginians have a bachelor’s degree or higher.
- Electricity is cheap – in winter of 2017, the average cost per unit of electricity in the industrial sector was 6.36 cents in Virginia.
- Corporate income tax is low – it’s just 6%, and it hasn’t increased in over forty years.
- Building costs are low, too – between 6% and 21% below the national average, depending on the region.
Whether your business is taking advantage of the 26.4 million square feet of office space in Tysons Corner, the excellent events organized by the Central Fairfax Chamber of Commerce, or the tech-friendly climate of Abingdon, Virginia is the place to be.
Banking Account Options for Virginia Businesses
Virginia businesses have a wide array of banking account options. Just like most people have checking accounts and savings accounts, business owners often have multiple business bank accounts for different purposes
Business Checking Accounts
This account is useful for businesses at any stage of the business life cycle. If you’re just starting a business, having a separate account makes it easier to track your costs and returns. It is essential to separate your personal finances from your business-related finances. If you don’t keep your finances separate and someone takes legal action against your company, the court can hold your personal assets liable. The requirements for your business checking account depend upon the type of business you are operating.
- Sole Proprietorships – These are usually owned by one person. The business owner is liable for all debts and can report profit or loss as personal income. A business checking account for sole proprietorships isn’t necessary, but it will help you keep more accurate records of your business expenditures and profits.
- Limited Liability Corporations (LLCs) – LLC business bank accounts are similar to those created for sole proprietorships.
- Corporations – In Virginia, there are three types of corporations: C-corporations, S-corporations, and benefit corporations. Each of these limits personal liability, but C-corporations are distinct legal entities taxed separately from the owner. Corporation bank accounts require more documentation to set up, and since the corporation is an independent entity, it has its own credit rating that won’t affect the credit rating of the business owner.
There are many benefits to opening a business checking account. In addition to limiting liability and making things quite a bit easier at tax time, you can use your business bank account to:
- Delegate to your employees. Business checking accounts can have multiple signers, so you don’t always need to be on hand to sign receipts and make deposits.
- Take payments via credit card. Business checking accounts and merchant services make it easier for your business to take other payment methods. Virginians have about two credit cards each, so accepting credit card payments can really boost your sales!
- Establish a relationship with your bank. As your business grows, your local bankers will become a resource for financing and banking advice. If you’ve been banking with them since the beginning, they’ll be better able to predict your needs and offer relevant suggestions.
Business Savings Accounts
When business is booming and you have extra money coming in, a business savings account can store this money (and accrue interest!). There are three primary types of business savings accounts:
- Basic Business Savings. You’ll keep your assets liquid for a rainy day while accruing greater interest than you might earn in a business checking account. This type of savings account has a low minimum balance, so it’s easy to get started.
- Business Money Market. This type of account has competitive interest rates and retains easy access to your funds.
- Certificates of Deposit (CDs). If you’re looking long term, a CD can offer higher interest rates than a basic business savings account or a money market account. The longer the CD term, the higher your interest rates will be. We call it the unsung hero of the business savings plan.
A business savings account, money market, or CD will put your savings to work for you. You can’t anticipate what will happen in the future, and knowing you have a cushion to fall back on will ease your mind when sales are light.
Requirements for Opening a Business Bank Account in Virginia
To open a business bank account in Virginia, you must first create your business. You don’t have to have any customers yet, but you do need to take the first few steps toward opening your virtual or brick-and-mortar doors. Here are the items you’ll want to have with you when you open a business bank account in Virginia:
- Business Registration. Virginia allows you to register your business online. If you are forming a new Virginia stock corporation or a new Virginia LLC, you can do so through the State Corporation Commission.
- Business Tax Numbers. If you’re opening an account on behalf of your business as a separate legal entity, you will need federal and state tax identification numbers for your business. Some types of businesses in Virginia require specific tax registration.
- Business License. Virtually every type of business in Virginia needs a license to operate, even home-based or online-only businesses. Virginia’s online registration tool can help you find and file the appropriate paperwork. If you haven’t received your license yet, ask for an official document indicating that you have begun the licensing process.
- Documentation of Account Holders. Ideally, every person who will be accessing your business bank account will be present when you open the account. Each person will need to bring photo identification such as a driver’s license or passport.
- Deposit. Some accounts require an initial minimum deposit. You should bring this deposit with you when you apply for a business bank account.
What Else Can a Bank Do For Virginia Businesses?
A bank should be more than the place that stores your money. A good bank is like a business partner, making sure that your money is working as hard as it can for you. At [client], we’re always keeping our eye out for ways to help our local businesses earn and save even more money, whether that’s through grants, real estate opportunities, or merchant services. [Client] can help your business with:
- Commercial mortgages or construction loans so you can expand your business.
- Business loans for new equipment or supplies.
- Business credit cards and lines of credit, so you can take advantage of great deals when you see them.
- Business debit cards to access the funds in your business checking account.
- Insurance services.
- Merchant services including credit card processing, reporting, and check collection.
- Cash management like payroll processing, deposit services, and online and mobile banking.
Whether you’re in the early stages of creating a business plan or you’ve established dozens of locations across the country, [client] has the resources of a larger bank and the local knowledge and passion of a small bank. We’re invested in our community. Are you invested with us?