Opening a CIBC business account is as easy as opening a personal checking account. However, there are more required documents for business accounts, like a Social Security Number, a Business License and Articles of Organization, a partnership agreement with your business name, and the Organization documents.
Once you have everything required to open a CIBC business account, you can complete the application online. First, visit the CIBC website and check for online business account applications. Alternatively, you can physically visit the bank and complete the Business Account Application Agreement.
The documents the banks require for Canadian citizens to open business accounts depend on the business type. For example, there are specific documents for sole proprietors, partnerships, and corporations. You should also check other bank requirements, like documents required for foreign investors and non-residents.
Most entrepreneurs, especially start-ups, use their personal checking accounts to receive payments for goods and services provided by businesses. However, this is not advisable because it puts your business at risk. Moreover, a business account has more benefits you won’t get from your personal account.
Some reasons to have a business account for your start-up are;
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A business account helps with the separation of personal finances and business funds. Channeling your business income to your personal account increases your company’s vulnerability if anything goes wrong with your finances.
Separating the finances also helps you monitor the business expenditure, profits, and losses. Knowing how the business is progressing enables you to make more sound decisions to improve it.
Filing for taxes in your company becomes easier if you have a separate account. Your business checking account would simplify the calculations of your quarterly taxes, which would be more complex if you had the funds in one personal checking account.
Besides, having a company account protects you from exposing your other personal transactions during business auditing. However, the exposure puts you at risk of answering many questions unrelated to your business.
Whether your start-up is a hobby or a skill, opening a business account for it is essential. It adds professionalism to the business, and customers will likely trust your services more.
Having the account also gives you hope and options for future growth. For example, if the start-up started as a hobby and you want to expand it, you can apply for a credit card and get a bigger business loan.
Managing the finances of your start-up when it starts picking up also becomes easier when you have a business checking account. In addition, you can have an employee who handles your accounts, like paying other employees and purchasing machinery.
CIBC allows small business owners to open a business account online or by visiting the bank. Opening the account online is straightforward and takes 30 minutes. You’ll get the necessary forms for account opening from the CIBC website and fill in the required information.
If you visit the nearest CIBC bank branch for a business account opening, carry all the required documents, depending on your business type. For example, a sole proprietor should have the business registration documents.
CIBC business account opening is different from opening a personal checking account. There are more documents required to prove the existence of your business;
You must not be a Canadian citizen to open a business account with CIBC. However, Canada allows foreigners to register and open business accounts, even if they’re not planning to live there.
However, ensure you check the rules and requirements of the bank you want to open the account with. For example, some will require you to be a resident or provide different documents if you are a foreigner.
Whether you can open a business account outside Canada depends on your chosen bank. Most banks, like CIBC, provide an option of opening an account online so that you can open it from anywhere.
However, it is essential to check if the bank allows people outside Canada to open an account. Some banks might require you to be available in person or ask for citizenship and residency documents.
Alternatively, you can open an account with an international bank in Canada. However, you’ll need to transfer the account to Canada, which could cost you high fees.
Since international banks operate with different currencies, you could also pay a currency exchange fee if you open a USD or euros account. Note that these banks charge high foreign currency exchange rates.
One way to save some coins is by using Knightsbridge to convert your currency every time you do a transaction. Knightsbridge offers lower exchange rates than banks and other currency exchange agencies, and the site is easy to use.
Besides accessing higher credit with a business account and separating your accounts, there are other benefits.
A business account enables you to write cheques using your business name, making them look more professional. It means the payments will be drawn from your business account instead of your checking account.
Whether you open a business account for a start-up or a big company, it allows you to make wire transfers. These transfers will allow you to send and receive money from abroad, helping you to trade outside the country. However, you will pay a fee for outgoing business wire transfers with a business account.
You can grow your business better with a business account because it enables you to make purchases. For example, it allows you to buy machines or other equipment that help you provide better services.
Business accounts also permit business owners to apply for employee debit cards, which enable employees to make purchases on behalf of the business. You can review all the transactions in your business account to ensure employees don’t misuse the funds.
Once you open a business account, you start growing your business credit even if you don’t have a business credit card. You can keep your business credit score high by paying all your debts on time.
Opening a CIBC business account is an easy process that takes about 30 minutes. You can open the account online or visit a CIBC bank branch with the required documents for account opening. The business account helps you separate your funds from those of the business and provides options for your business growth.
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