Are you unhappy with your bank but concerned about the potential risks of transferring a business checking account in Maryland? You can preserve the financial stability of your business and get the banking features you want by following the best practices for transferring accounts.
Find out what steps to take for a smooth transition to a new financial institution.
Key Considerations for Choosing a Business Checking Account in Maryland
Business owners typically try to avoid transferring banks repeatedly and therefore, strive to choose a business checking account with the features they want.
By making a list of the desired features, such as low or no fees, cash management services, and accounting software integration the search can more efficiently be conducted. Both features, cash management and software integration, make the transition seamless placing them as a priority for many small business owners.
Business owners should also explore other banking services that may be needed in the future. For instance, small businesses often borrow money to fund operations, with over a third applying for loans in 2021 alone.
Business owners can prepare for the future by selecting a bank that includes various business financing options, such as SBA loans, real estate financing, and lines of credit.
Since only 31% of the small businesses that applied for financing in 2021 received the entire requested amount, evaluating the bank’s approval guidelines is also beneficial.
Large national banks tend to have strict guidelines, making it more difficult for businesses to be approved. Conversely, community banks and credit unions are more open to working with customers to get the funds to them.
Information and Documentation Needed to Transfer a Business Checking Account
Business owners must provide personal and business information to transfer a business checking account in Maryland. The bank requires the following personal information for all beneficial owners:
- Names
- Addresses
- Dates of birth
- Social security numbers
- Phone numbers
- Email addresses
- Copies of driver’s licenses or other approved forms of identification
There is also the requirement to provide details about the business. Business owners already know much of this information, such as the business name, address, phone number, industry, and start date. Owners should be ready to provide the employer identification number and trade name if applicable.
The bank will require a copy of the business license and the following entity-specific information:
Sole Proprietorships - Business name registration certification- Partnerships - State certificate of partnership, business name registration certification, and partnership agreement
- LLCs - LLC operating agreement and articles of organization
- Corporations - Corporate bylaws and articles of incorporation
All banks may have additional guidelines governing the exact document requirements, such as multiple forms of identification and tax forms.
Steps to Successfully Transfer a Business Checking Account in Maryland
Owners can schedule an appointment with a member of the institution’s business banking team to establish the new account. Confirming the required documentation over the phone is beneficial before visiting the local branch.
After arriving, a bank employee will review the documentation while the business owner completes an application. Upon approval, the owner will make a deposit based on the bank’s requirements; the account will then become active and ready to use.
Setting Up Payments to the New Account
Owners receive their account and routing numbers before leaving the bank. If possible, they should change any recurring payments and payroll to the new checking account upon approval and establishment of the account.
Typically, businesses will need to contact the vendor or payment processor and provide the new account information to switch to automatic payments.
Owners will then need to share the new business checking account details with their accounting department or accountant to avoid checks being drawn on the old account, leading to overdraft charges.
Closing the Old Account
Business owners should keep their existing checking accounts open until all transactions have cleared the bank and all automatic payments and payroll are confirmed for the new account.
Some business owners wait to close the old account after the first round of automatic payments and paychecks goes through. This ensures vendors and third-party payment processors have added the new account to the system. Other companies close the old accounts within a month of opening the new one.
Regardless of the timeline, owners must withdraw or transfer any remaining funds to the new checking account. Shredding and disposing of old checks prevents fraud or misuse. Companies without shredders can take the checks to the new bank for shredding.
Establish a New Business Checking Account in Maryland Today
As a community bank, Woodsboro Bank provides personal services for customers transferring business checking accounts. The business banking team will guide you through each step, from selecting the appropriate account to changing payment methods for payroll and automatic transfers.
Contact Woodsboro Bank today to transfer your account without any stress or negative impact on your business. Let your business enjoy the benefits provided by our business checking accounts.