Running a small startup company comes with several challenges. Deciding the best way of accepting payments is one of the issues that small business owners have to face. After going through the struggle of finding customers, you have to find a place to keep your money. Even though you do not need a permit to begin accepting payment, there are some basics that you need to learn. Business owners can attest that technology has made it easier for you to accept payments. Nevertheless, the several options available can be daunting. Read on to discover how to accept payments for your small business effectively.
If you use your name to run your business, you can ask your customers to deposit directly to your bank account. If you have a corporate company, you have to open a business checking account. Customers will then make their checks payable to this account.
Tax ID Number.
For you to open a business bank account, you need to request a tax ID number from the IRS. Once you have a number from IRS, you need to get a tax ID number from the state in which you intend to do business. Fill out the IRS form SS-4 and email it to the IRS office to get a federal tax ID number. The process is free, and you will receive your tax ID number within three weeks after they receive your SS-4 form. Visit the tax and accounting sites directory and access the State and Local Tax to obtain a state tax ID form. When opening your business account, your bank will also require you to provide your company’s articles of incorporation and corporate seal.
If you are a sole proprietor or in a partnership and you decide to do business using another name, you have to register your fictitious name. Most states require you to pay a registration fee to your county offices to register your fictitious name. In other states, you have to pace a notice in the local newspaper. The registration fee ranges from $10 to $100.
If you want to accept payment by credit card, you have to set up a merchant account. The merchant account will allow your customers to pay through Visa, MasterCard, or other cards. You will need three things so that you can accept credit cards: merchant account, bank account, and a way to process payments. You will have to pay a startup fee of around $100 and a per-transaction fee.
Online Payment Systems.
You can look for an online payment system such as JJS Global to start accepting payment. JJS Global is an expert in payment processing. Since 2001, the system has worked with several established firms and has a history of success. The system specializes in processing payments in both the US and offshore accounts.
Implementing different ways to accept payments will not only save your time, but it will also improve your cash flow.