In our previous post, we discussed setting up an S-Corp. as the first step in becoming an independent contractor.
Once you have that established – either on your own or with the help of an accountant – the next step will be in finding a place to put any income related to the business.
For that, you will need to create a business checking account.
This can be done at your current banking establishment or another of your choice. Most banks have accounts that differentiate between personal and business. Those differences vary from interest accumulated to a minimum balance required in the account. Make sure you do your research on this. You may find your current bank doesn’t have the right business account for your needs, and that is okay.
Once you have found your bank of choice, you need to make sure you have the following items:
- Your tax ID number
- Your documents of incorporation
- You may also need a piece of snail mail to verify your address.
Some banks may require more and some may require less depending on the type of account and even your relationship with the bank.
Once you have your business bank account set up, you can start depositing funds into it. Use the account and routing numbers on your new business account for any contracting work you do.