Corporate bank accounts
If you operate your own company, then no matter what field you are in or what type of business you run — limited liability company, corporation or sole proprietorship — you will almost certainly need a bank account to keep your personal income separate from your business income. Business bank accounts have different features depending on the legal structure of the business and other preferences.
Traditionally, a corporate bank account has the most formal requirements. Corporations exist as distinct legal entities, separate from their owners, and have similar rights to individuals — they can incur liabilities, own assets, conduct business, sign contracts and open bank accounts. The only difference is that a corporation is not a natural person; therefore, it must authorise one or more individuals to manage its bank account on its behalf.
Opening a corporate bank account
In order to distinguish a corporate bank account from other types of business accounts, it is useful to look at the requirements for opening a corporate account. The key feature of a corporate bank account is that it can only be opened by the decision of the board of directors. In contrast, a regular business bank account can be opened by an owner or another person without a vote being held, as long as that person has the authority to sign the paperwork. Typically, a corporate bank account is opened by the treasurer of the board of directors after a corporate resolution is brought forward authorising him or her to carry out this task.