Business Account Basics
What is the difference between a businesss account and a personal account?
A business account helps freelancers or small business owners hold and manage their money made directly from their business. Personal accounts help individuals hold and manage their personal funds.
You shouldn't use your personal account for business related purposes primarily because you risk commingling funds, not accurately tracking deductible expenses, and potentially putting you afoul of the IRS. For this reason, we recommend using a business bank account to ensure you are in the best position to file your business taxes and stay on good footing with the IRS. A business deposit account is typically required for any type of business financing.
LLC Formation and Existing Business Application Process
There are several benefits to opening your LLC with Oxygen:
- You can do it all through the app, quickly and easily.
- You’ll receive business-focused financial insight through the app.
Download the mobile app and create a login by providing your email address and password. If you already have an existing business, a personal account is not required, however if you would like to form an LLC with our partner CorpNet Inc., you will need to sign up for a Personal Oxygen Account first.
If you’re applying for a new LLC, our team will obtain your EIN as part of the formation documents. If the LLC application is rejected for any reason we will refund the LLC formation and state filing fees paid within 3-5 days.
Once your login has been created, You’ll be asked to scan your ID, agree to the terms and conditions, including the agreements and summary of fees. Next, it will ask you a series of questions about the location of your business, the industry, and your own role in the business. You may also be asked to provide documentation depending on the business entity.
List of documents we may ask for depending on the Business Entity:
- Articles of Incorporation
- Name Registration
- Resolution of Authority
- Operating Agreement
- Business License
- Certifcate of Good Standing (from a governmental entity)
- 501(c)(3) Letter
- Assumed Name Certificate
- Articles of Formation
- Articles of Organization
You should be notified of the outcome of your application for existing businesses in 5 business days. For LLC formations, it can take between 2-4 weeks. If you have any questions or concerns about the outcome of your application, please contact your state government entity. To learn more about the benefits of creating a business, as well as helpful tips and tricks to help you throughout your freelance career, check out our blog.
Oxygen does not support the creation of the following types of businesses:
- Financial services
- Insurance business and services
- Marijuana-related business and services
- Gambling businesses and services
What is an EIN?
EIN stands for: employer identification number (also referred to as Business Tax ID). It is a nine-digit number assigned by the IRS. It's used to identify the tax accounts of employers and certain others who have no employees. The IRS uses the number to identify taxpayers who are required to file various business tax returns.