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Importance of SSN and How to Choose a US Bank For Small Business

Do I Need A Social Security Number to Open a Bank Account?

The simple answer to this question is “yes,” and the reason for this is that in the United States, having a Social Security number (SSN) is not legally required in order to be qualified for a bank account.

However, financial institutions like banks and credit unions are obligated by law to verify your identity, and some of them may ask for your Social Security number.

If you have an Individual Taxpayer Identification Number (ITIN), some financial institutions will let you open an account without providing your Social Security number.

If you do not have either an SSN or an ITIN, some financial institutions may accept alternative forms of identification from you.

It is possible that you may be required to reveal personal information such as your name, address, and date of birth when you submit an application.

In order to validate the information contained in your application, you will also require official papers, such as:

  • A certificate of birth, a passport, an identification card issued by the government, or an alien identification card.
  • If you want to establish that you live in the United States, you’ll need anything like a lease, an energy bill, a driver’s license, or an identification card.

The list of documents that are acceptable to provide to a bank or credit union may differ from one institution to another. The Consumer Financial Protection Bureau (CFPB) has compiled a checklist of the most frequently necessary documents.

Additionally, it provides a listing of some of the fees and perks that you need to evaluate before starting a new account.

Get a US visa for Slovak citizens and start your new company in the US. Here is a guide on how to choose the right bank account for your small business.

Choosing the Right US Bank for Your Small Business

As you evaluate each of your choices, here are some considerations to keep in mind:

Think about both your short-term and long-term monetary goals. If you believe that your company’s requirements will radically shift over the next year, you should avoid selecting a bank that won’t be able to meet your needs after that period of time has passed.

Consider the banking method that works best for you. Will you limit your search to traditional banks with physical locations, or will you also consider online financial institutions?

Look for the product features or services that are most essential to you and prioritize those. If obtaining a business checking account is at the top of your to-do list, refine your search so that you can identify the checking account options that are most suitable for your company.

On the other hand, if you want to purchase numerous items at once, you should look for a financial institution that offers the services that are most important to you and then bundle them together.

US visa for Slovenia citizens is available online and once you have your visa, you can select a US bank as well that you can use for your business transactions.

Consider Bank Charges

Don’t overlook the cost of the fees. Before you sign up for any business account, make sure you have a clear understanding of the fees that are associated with that account, and consider all of your available options.

You should begin your search with your personal bank, but you shouldn’t conclude it there. A research and training nonprofit for company owners, BAI, conducted a study in 2019 and found that 79 percent of owners of small businesses reported utilizing the same supplier for both their personal and corporate financial services.

However, the same survey notes that owners of businesses report lower levels of satisfaction with their banks compared to consumers of general banking institutions. Customers that use regular banking services have a net promoter score of 35, whereas company owners only have a score of 24.

This metric is used to determine how satisfied customers are with a product or service. Even though it may be convenient to begin your search with your personal bank, you should also consider looking into other financial institutions.

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