Whether you’ve already started your own business, or are thinking of doing so, you will need financing. Even established businesses rely on banks and government-backed loans for the capital they need to fund and expand their operations.
We offer this guide to small business banking in the Washington, DC, Maryland, and Virginia areas because at FVCbank, we want to help all our business customers succeed.
We’ll start by listing the types of questions you need to consider when forming a business, whether you need to register your company in the DMV area, ways of protecting your business identity, and the types of government-backed and commercial business loans available.
Things to Consider Before Starting a New Business
Before starting a new business, you’ll need to consider what type of business you’d like to run, your area of expertise, and the potential demand for the products or services you plan to offer. It’s also essential to surround yourself with key professionals who can help protect and guide your business, including a CPA for financial planning and tax strategies, an attorney for legal structure and compliance, a business insurance agent to mitigate risks, and a reliable bank to support your financial needs.
These questions are also worth considering if you’ve already launched a business and are thinking of ways to expand:
Will you start your business as a side hustle for additional income, or do you plan to grow it into a full-time endeavor?
If working full-time, are you prepared for the long hours and challenges of making it successful?
Do you have the financial resources to support both your business and personal expenses? Many small businesses take time to become profitable, and some never do.
What is the competition like in your field, and how will you differentiate yourself?
Is your family ready to support the time and effort required to build your business?
Why are you starting this business? Beyond offering a product or service, understanding your deeper motivation will help you stay focused on your goals.
Building a strong foundation with the right advisors and planning ahead can help set you up for long-term success.
Do I Need to Register My Business to Open a Business Bank Account?
Before you open a bank account for your small business, you may need to register your business with the federal government, and/or your state and local government.
Many small business owners do business as themselves, using their legal name. In this case, you wouldn’t have to register your business, although you may wish to do so. Registering your business can create a separate legal entity and also provide certain benefits.
With a registered business, you could deduct your insurance premiums, payroll, and business expenses from your business income taxes.
There are, of course, advantages to doing business as yourself. You would list your business income on your income taxes, so you wouldn’t have to fill out a separate tax return for your business.
Creating a separate entity with a doing business as (DBA) name, also creates a separate entity from yourself that offers some liability protections.
If you do plan on using a business name, you will need to register it with the federal government to get your federal employer identification number (EIN), also known as a federal tax ID number. You may also need a license from your state or local government.
If you’re doing business as yourself, you can register with your state or local government using your Social Security number. Even if you are doing business as yourself, you may need to register with the federal government if your profession involves any type of federal license or certification, or you want to bid on federal contracts.
Business Licenses in the Virginia, Maryland, and Washington DC Area
Within the DMV area, states and local governments have different licensing and registration requirements. You may need a standard business license, depending on your location. Of course, you may also need a professional license, depending on your field.
Washington, DC
Washington, DC requires business licenses for different categories of businesses. More information is available through DC’s Office of Tax and Revenue.
Maryland
Maryland requires business licenses through your local clerk of the court’s office for the following businesses: auctioneers; chain stores; cigarette; commercial garages; console machines; construction firms; hawkers and peddlers; junk dealers; laundry; plumber and gas fitters; restaurants; special cigarette; e-cigarette; storage warehouse; trader’s; trader’s show; vending machine; and wholesale dealer-farm machinery.
To verify whether you need a business license in Maryland, contact your local Clerk of the Circuit Court or call the State License Bureau at 410-260-6240.
Virginia
The state of Virginia doesn’t require a general business license, but businesses do have to register with the Virginia Department of Taxation to get a Virginia State Tax Account Number. More information is available from the department’s website.
If you plan on hiring employees, you’ll have to register with the Virginia Employment Commission, which you can do when you register with the Department of Taxation.
How to Protect Your Business Name
A business name can help you set yourself apart from your competitors, especially if you have a fairly common personal name. Choosing a business name can also give your potential customers an idea of what your business does.
If you do choose a business name you’ll need to take steps to protect it from anyone infringing upon it. Obtaining a state or local business license can help you do this and, as mentioned above, it may be legally required in your area.
Federal Trademarks
Another way to protect your business name is through a federal trademark, which can prevent another business from using the same or a similar name. You can check with the U.S. Patent and Trademark Office to see if another company is using that name, and to register your trademark.
Register Your Website
Most businesses have their own website these days. Even if you have a social media page that you use for attracting customers, having your own website and registered domain can also protect your business identity.
Even if you don’t plan on doing much with your website, by registering your web address you can keep someone else from claiming it. Many small business owners aim for a web address that’s similar to their business, although they don’t have to be identical.
You might consider using a combination of your business name; your line of work; and your location such as “BaltimoreBusinessName,” etc.
You can register your domain name through an accredited registrar. Just remember that you’ll need to renew your registration on a regular basis.
Business Banking Solutions in the DMV Area
At FVCbank, we offer several business banking account options and services to help you improve your cash flow management and operational efficiency. This includes free tools that analyze your transactions to offer predictions and recommendations.
We can also help you consider all your business lending options within the commercial banking sector, including business loans backed by the Small Business Administration (SBA).
Treasury Management Services
With treasury management services from FVCbank, we provide easy online banking and deposit, withdrawal, and transfer abilities.
You can set different access, transaction limits, and restrictions for each employee; plus account alerts. We make it easy to view your account balances and transaction history at any time, make payments, stop payments, and transfer funds.
These services also include:
- Remote Deposit of all checks, from your business, using one of our scanners.
- Automated Clearing House (ACH): Use direct deposit, automated transfers, and electronic accounts payable instead of paper checks.
- Merchant Services: Seamless and secure credit card processing, with free analysis and solutions tailored to your business.
- Zero Balance Accounts (ZBAs): A sub-account used for disbursement and collection, with automatic fund transfers between accounts, as needed.
Free Business Insights and Analysis
All our business banking customers have access to Business Insights, our mobile financial assistant. Once you connect it to your accounting software, it will provide a treasure trove of useful financial information about your business, such as competitive analyses, predictions, and recommendations.
You can also use it to monitor your cash flow and financial performance, see how different business events could impact your business, and receive critical alerts and recommendations.
It also allows you to gauge your financial performance against those of similar businesses.
Business Savings Accounts
We offer several savings account options for your business banking needs:
- First Business Savings: Earn interest that’s compounded daily and credited quarterly, with no monthly service charge. Includes automatic transfer between accounts for overdraft protection.
- First Business Money Market: Offers higher interest payments, based on your balance. Has a $12 monthly fee for average daily balances below $2.500. Also includes automatic transfers for overdraft protection.
- Certificates of Deposit: Competitive rates and flexible terms from 3 to 60 months
- Certificate of Deposit Account Registry Service (CDARS): Gain FDIC protection on multimillion-dollar CD investments.
- Insured Cash Sweep (ICS): Gain FDIC protection on multimillion-dollar savings deposits, earn interest, and be able to withdraw funds six times per month.
Business Checking Accounts
All our business checking accounts include 24-hour online banking and bill payment, mobile deposits, notary services, and a business debit card with SecurLOCK.
These are the types of business checking accounts we offer:
Business Checking: The perfect fit for small business owners and startups. No minimum balance requirement and no charge for combined transactions of 500 items or less per month.
Commercial Checking: For mid-sized businesses that need treasury management services, with unlimited check writing privileges and the ability to combine your accounts into one consolidated analysis.
Business Interest Checking: Earn interest on your deposits, with no transaction limit.
Business Loans in the DMV Area
At FVCBank, we offer a variety of business financing options throughout Northern Virginia, Baltimore, and the Washington DC areas. Our Lightning Lending application process allows for fast and simple way of securing business loans. We can also help you with government-backed loans as well.
Commercial Lines of Credit
We offer several types of business lines of credit to help you manage your cash flow and keep your business running:
- Business Automated Overdraft Lines of Credit: For temporary cash flow needs.
- Business Owner’s Guidance Lines of Credit: Our lending team can help small business owners and entrepreneurs plan for major purchases up to a year in advance.
Commercial Term Loans
Competitive market rates for up to 7 years. Use these to expand your business, buy equipment, etc.
Asset Based Loans
We provide competitive asset-based lending options using your inventory, equipment, or account receivables as collateral. As a line of credit, you only pay interest on the funds you use, and gain more favorable lending terms than a standard business line of credit.
Business Construction Loans
For the purchase and renovation or building of a facility; plus you can convert a construction loan into a permanent financing option at no additional cost.
Business Mortgage Loans
Competitive fixed and variable rates are available for 25-year loans with a balloon payment at maturity.
Business Credit Cards
We offer VISA® Business Credit Cards.
Open a Business Account with FVCbank Today
At FVCbank, we offer banking solutions for small businesses throughout the DC Metro area, Northern Virginia, and Baltimore, Maryland. Simply contact us online, visit one of our locations, or call us at (703) 436-4740 to learn more about what we have to offer.
