- 10 Steps to Starting a Business in San Jacinto or Hemet: A Complete 2025 Guide to Local Success
- Step 1: Choose a Business Structure
- Step 2: Register a Fictitious Business Name (DBA)
- Step 3: Apply for an Employer Identification Number(EIN)
- Step 5: Register for California State Taxes
- Step 4: Obtain a Business License in Hemet & San Jacinto
- Step 6: Obtain Business Permits
- Step 7: Open a Business Bank Account
- Step 8: Obtain Business Insurance
- Step 9: Join Local Business Networks
- Step 10: Educate Yourself
In the last post, we covered various types of local business permits required for business owners in Hemet and San Jacinto. Now, it’s time to prepare your venture for the financial world. And that means opening a business bank account, hopefully here in the local area.
This post covers the basics, as some options for banking locally, whether you choose a big brand or a Valley-Wide banking institution, we’re here to help!
Why You Need a Business Bank Account
Separating your business and personal finances is crucial for managing your business effectively. By opening a dedicated business bank account, you avoid commingling funds. This is the process of using the same account to finance your personal and business affairs. Commingling funds is an absolute no-no as a business owner.
Setting up a business bank account is key to keeping your finances organized and running your business smoothly. When you separate your business and personal finances, you avoid mixing funds, which makes tracking expenses and profits much easier. Keeping your finances separate also simplifies taxes and helps protect your personal assets.
Benefits of Business Checking Accounts
A business checking account keeps your finances organized, protects your business, and boosts your professional image. Here’s why every business owner needs one:
- Keeps Things Organized: Separate accounts streamline bookkeeping, making tax season a breeze and helping prevent costly errors.
- Builds Business Credit: Establishing business credit early can open doors for future financing, better interest rates, and credit opportunities.
- Looks Professional: A dedicated account leaves a great impression on customers and vendors, especially for payment processing and when issuing invoices.
- Simplifies Cash Flow Tracking: It’s much easier to monitor your business income and expenses when they’re not mixed with personal transactions.
- Offers Legal Protection: Separating accounts helps you maintain a clear boundary between business and personal finances, which can protect your personal assets if legal issues arise.
- Access to Business Perks: Many business accounts offer benefits like cash-back rewards, specialized business support, and discounts on services such as payroll and merchant processing.
- Improves Tax Deduction Tracking: Having a separate account helps you accurately track deductible expenses, reducing hassle and maximizing your tax benefits.
- Facilitates Better Financial Planning: Clear records enable more precise budgeting, forecasting, and financial planning for your business growth.
Learn how one Hemet attorney faced suspension and probation for commingling personal and business funds: Hemet attorney faces suspension, probation over commingling, misappropriation
What You’ll Need
Here’s a categorized list of what you’ll need to open a business checking account:
Identification & Tax Documentation
- Employer Identification Number (EIN): Your business’s tax ID number.
- Social Security Number: Required if you are a sole proprietor without an EIN.
- Personal Identification: A government-issued photo ID (such as a driver’s license or passport) for each authorized account user.
Business Registration & Structure Documents
- DBA Documentation: Required if you’re a sole proprietorship or partnership using a DBA or business name other than your legal name.
- Business License: Proof of your business’s legal registration with local authorities.
- Articles of Organization/Incorporation: Required if your business is structured as an LLC or corporation.
Ownership & Operating Agreements
- Partnership Agreement: Required for partnerships to verify ownership structure and designate authorized account access.
- Ownership Agreements: Operating agreements or bylaws for LLCs and corporations, especially if there are multiple owners or stakeholders involved.
With these documents, you’re ready to set up your business checking account smoothly. And if you’re not fully incorporated yet, remember you can still get started as a sole proprietorship using your DBA (Doing Business As) until your incorporation process is complete.
Now, let’s look at some local banks in the Hemet and San Jacinto area with a long-standing presence in our community.
Local Banks You Can Trust
Consider choosing a local bank or credit union that specializes in small business services. These institutions in the Hemet and San Jacinto area understand the needs of local entrepreneurs and offer reliable business banking solutions.
Provident Bank Small Business Checking
Location: 1690 E. Florida Ave., Hemet, CA 92544
Phone: (951) 658-7224
Provident Bank, based in Riverside County, offers a range of business banking services, including small business checking accounts, loans, and merchant services. Their business checking accounts feature:
- Basic and Interest-Bearing Accounts with a $100 minimum deposit
- No minimum balance requirements and no monthly service charges
- Added perks like no foreign ATM fees, remote deposit, and online banking
Altura Credit Union Business Checking
San Jacinto Branch: 1821 S. San Jacinto Avenue, Suite G, San Jacinto, CA 92583
West Hemet Branch: 320 S. Sanderson Avenue, Hemet, CA 92545
Phone: (888) 883-7228
Home-based in Riverside, Altura Credit Union provides tailored business checking options designed for small and mid-sized businesses, featuring:
- No ACH fees, free online and mobile banking
- Access to an extensive ATM network
- Only a $100 minimum opening deposit for business accounts
Hemet Citizen’s National Bank (HCN Bank) Freedom Business Checking
Hemet – East Office: 1600 E. Florida Avenue, Hemet, CA 92544
Hemet – West Office: 1555 W. Florida Avenue, Hemet, CA 92543
San Jacinto Office: 400 E. Esplanade Avenue, Suite A, San Jacinto, CA 92583
Phone: (951) 766-4100
Formerly known as Bank of Hemet, HCN Bank continues to serve the Hemet community with dedicated small business banking options. Their Freedom Business Checking account offers:
- No minimum balance requirements and no account maintenance fees
- Access to additional business products and personalized services
These locally owned and operated banking institutions provide customer-focused alternatives to national banks, offering specialized support for entrepreneurs. Now, let’s explore ways to accept credit and debit card payments with merchant accounts.
Merchant Accounts for Digital Payments
The best place to start with digital payments is by setting up a merchant account at your local bank or credit union. These institutions often offer the best rates and personalized support, giving your business a strong foundation for handling transactions smoothly.
Local banks and credit unions may provide lower fees and more flexibility than national providers. So, take the time to discuss your options with them at some point.
Unconventional Merchant Accounts
Commonly Used Backup Options: Many small businesses and customers also prefer well-known alternatives for their simplicity and flexibility in online transactions.
Alternative merchant accounts are popular for small businesses, pop-ups, and freelancers who operate on-the-go. They also serve as excellent backups, especially for customers who prefer digital payments through platforms they recognize.
Here are some popular backup options to consider adding for convenience:
- Square – A mobile-friendly solution with no monthly fees, ideal for quick setup.
- PayPal – Trusted by consumers and widely used for both online and in-person payments.
- Stripe – Great for online payments, particularly for businesses needing developer-friendly tools.
- Venmo for Business – Convenient for small transactions, appealing to younger customers.
- Zelle for Business – An easy, bank-to-bank payment option popular with service-based businesses.
- Clover – A full POS system with hardware options, perfect for in-store setups.
Start with a Local Business Bank Account
For your core financial needs, begin by setting up a business bank account at a local credit union or bank. Local institutions often offer competitive rates and personalized service, making them ideal for handling your primary finances.
Use the flexible alternatives in this article as add-ons to boost sales conversions and provide more payment options. They also serve as a convenient way to collect and transfer cash from your merchant sales into your main account for easy management.
Now, let’s discuss the benefits of business insurance.
