Typically speaking, a small business is usually defined as one that is operated, owned, and financed privately by an individual or small group of individuals. Such a business will have a relatively small number of employees and relatively low economic activity.
However, this definition is based on the consideration that a small business is one with less than 500 employees and makes less than $7 million. With that in mind, a small business can, in fact, be quite substantial. Therefore, most of these businesses will usually set up a specific bank account for their business operations, which is referred to as a small business bank account.
Small business bank accounts can prove to be fundamental to the business and can be a very important factor in the overall success of such a company or business. Therefore, setting up a small business account should be a very well thought out process, particularly because there various financial institutions that offer the services and offer different kinds of small business bank accounts.
Opening a small business bank account can be done for various reasons, though some of the most common will be to build the financial and credit history of the business and to manage the finances associated with the small business. When seeking to open a small business bank account, it is important to find one that is certified by the Small Business Administration, for they may be able to provide for the best services to cater to the needs of the business and involved proprietors.