Opening a business account with a bank should be one of the last things you do before you launch your education service provider business. Banks offer businesses many of the same services with which you’re already familiar — like checking accounts, savings accounts, and credit cards. Banks also offer merchant service accounts to businesses. These accounts expand the options available to you when accepting payment from customers to include credit and debit card transactions.
A merchant service account might not be the right fit for you. Though many businesses enjoy using a merchant services account to collect payments, just as many are opting to use payment processing companies like Square or Stripe. These are no substitute for a business bank account, but consider them as an alternative to merchant service accounts when you’re shopping for that service.
Before launching, West Virginia education service providers should register with Step Up For Students. Many of your future customers will be one of the thousands of families that use West Virginia’s Hope Scholarship to pay for education services. West Virginia’s ESA program distributes funds through Education Marketplace Assistant (EMA) or MyScholarShop, a virtual wallet that ESA parents use to pay for services using the program’s funds. Registering your school or service provider business is an essential for every West Virginia education business looking to receive Hope Scholarship funds. Thankfully, it can be done quickly, simply, and online.
Business accounts do more. Depending on the business type you decide to form, your assets, your liabilities, and your credit history, banks offer business account owners cash flow through credit, separation between personal and business accounts, and the flexibility to have other people like your employees and partners the ability to conduct transactions.
Just like personal accounts, business accounts aren’t all built the same way. Because opening a business account is one of the last things you’ll do before you launch, it can be tempting to rush this last step. Don’t rush! When you’re deciding on a bank to do business with, remember that these accounts are often a long-term relationship that not only is a bit of a headache to change later, but one you’ll be paying for as long as you do business. So shop around and compare the services you qualify for before making a decision. Consult your business plan to get a picture of the services you need from a bank, and find one that fits your needs.
Want someone to talk to about opening a business account? Innovation Hub has experts eager to help at your disposal. Please don’t hesitate to open up a chat with us or request a 30 minute free consultation.