BUSINESS BANKING AT STATE BANK OF SOUTHERN UTAH

Does your bank make a difference? Yes! At State Bank we do business where you do business – in southern Utah. We help plan your future, then provide the financing to get you there. Best of all we have people right here, not hundreds of miles away, to help you meet the challenges and problems that arise during the course of running a business.

SERVICE AREA

State Bank of Southern Utah offers business loans to meet the needs of small businesses in our service area, which includes southwestern Utah, southeastern Nevada, and northern Arizona.

Requirements before you Open a business account

Are you “Doing business in Utah”? “Yes”, if transactions in the state are continuous and form a substantial part of the entity’s business. “No” if transactions are isolated, not continuous in nature, or are incidental to overall business. Please see the State's site at http://business.utah.gov/business/faqs.html for more information.

	Company’s Structure	You must have . . .	Notes
	Sole Proprietor	Signer ID and TIN (SSN or EIN)  Resolution of Authority when adding additional signers (bank form)	1, 2, 6
	Partnership	Signer ID and Business TIN  Resolution of Authority or Partnership (bank form)	1, 2, 6
	LP Limited Partnership	Signer ID and Business TIN  Resolution of Authority or Partnership  Certificate of Limited Partnership (state form)	1, 2
	LLP Limited Liability Partnership	Signer ID and Business TIN  Resolution of Authority or Partnership  Application of Limited Liability Partnership (state form)	1, 2
	LLC Limited Liability Company	Signer ID and Business TIN  LLC Authorization Resolution  Articles of Organization (state form)	1, 2
	Utah Corporation Professional Corporation (For profit or non-profit)	Signer ID and Business TIN  Corporate resolutions (one per account)  Articles of Incorporation (state form)	1, 2
	Foreign Corporation (incorporated in another state but doing business in Utah).	Signer ID and Business TIN  Corporate resolutions (one per account)  Articles of Incorporation from home state.  Utah foreign corporation registration (state form).	1, 2
	Association	Signer ID and Business TIN  Resolution of Lodge or Association (bank form)	3, 4, 6
	Trust Revocable or Irrevocable	EIN (if available) or SSN of Grantor/Trustee  Identification for signers  Certificate of Trust (bank form)	2, 6
	Informal Group (reunion committee, gathering, etc.)	Signer ID & TIN (SSN or EIN).	3, 6

Notes:

1. City or County Registration is required if your business operates within city limits or your home-based business is located within the city limits. County licensing is required if your business operates in an unincorporated area.
2. State Registration: See http://business.utah.gov for more information and registration forms. You must register with the State if your business structure is any of the following:
• Limited Partnership (LP)
• Limited Liability Partnership (LLP)
• Limited Liability Company (LLC)
• Corporation
• Foreign Corporation (incorporated in one State, but operating in Utah)
• Business Trust
• Partnerships or Sole Proprietorships operating under an assumed name
• Any business operating under an assumed name must register with the state. For example, a sole proprietor by the name of John Jones who operates a business under the name “John’s Repair” is using an assumed name and therefore must register with the State.
3. Your association or informal group should obtain a separate TIN from the IRS for banking purposes if the account earns interest.  Otherwise, one of the signers must assume tax responsibility.  
4. Associations, such as homeowner or water associations, that wish to open an account or change signers should present meeting minutes that identify who has the authority to conduct banking business.
5. Business trusts should file Application for Business Trust with the State.
6. A separate TIN from the IRS may be obtained for banking purposes. Otherwise, one of the signers assumes tax responsibility.

Business CHECKING ACCOUNTS

*Cash & Coin Services: Coin wrapped, cash strapped for free with a typical Commercial Business Checking account. Special rates apply for cash-intensive businesses, such as check cashers. Coin wrapping available only at Cedar City and Kanab offices.

**MSB = Money service business, such as one that cashes checks for customers.

Two-Signatures Required: Any two-signatures required account is subject to a $10 service fee if the account balance falls below $1,000 any time during the monthly cycle.

FREE BUSINESS CHECKING

No minimum balance requirement, 500 free transactions, check images included in the monthly statement and $20K in cash or coin services at no charge. It doesn't get any better than this! Free Business Checking is a great account for any business, non-profit group or association.

What counts as a transaction? Any type of debit or credit. A deposit item also counts. Example: an account with one electronic credit, one posted check, and one deposit ticket followed by two deposit items has five transactions. Whew! only 495 to go! Transactions above 500 per monthly cycle cost 25¢ each. Coin and cash services above $20K per monthly cycle cost $4 per thousand.

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Two Signatures Required Exclusion: Accounts with two-signatures required will be charged $10 per monthly cycle if the balance falls below $1000.

COMMERCIAL BUSINESS CHECKING

This is the best account for a high-transaction business. It builds up credits to offset fees from activity and maintenance. We've found that a typical business that maintains a balance of about $15,000 generates enough credits to avoid most, if not all, activity fees. Actual results vary depending upon balance and activity. There is NO minimum balance requirement, which means the account may dip to nearly $0 during the monthly cycle without incurring a fee.

The earnings credit is calculated at 1% (annual rate) of the average monthly collected balance. The credit is used to offset maintenance and per-item fees and applies only to the month it is earned. Excess credits are not carried forward.

If you would like a business account that earns interest, check out our "Business Interest" account.

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Business Interest General Terms

• This account is available to any business entity (corporation, LLC, partnership, etc.).
• Check images are returned in the monthly statement.
• $8 monthly maintenance fee if the balance falls below $5,000 anytime during the monthly cycle.
• 100 free transactions per monthly cycle then 4¢ per item.  Any debit, credit or check with a deposit counts as an “item” including electronic transactions (i.e. ACH or Internet).
• Interest accrues daily at the highest tier available for entire collected balance.  
• Annual Percentage Yield (APY) will be calculated and paid as follows:

• Rates may change at anytime according to internal bank indexes.
• The maximum FDIC insurance on this Business Interest account is $250,000.

BUSINESS MONEY MARKET

Start earning interest with a balance of at least $500 (maintain $2500 to avoid fees). Interest tiers are stepped at $25K, $100K and $500K. The account is insured by the FDIC.

Money Market transactions are federally regulated to no more than six (6) convenience withdrawals per monthly cycle.

To avoid the limits, consider the following:

1. Six (6) or Less of These:
   • Checks
   • Internet and automatic withdrawals
   • Transfers out
   • Anytime Line Transfers
   • Bill-pay debits
2. Unlimited:
   • ATM withdrawals
   • In-person withdrawals using an “Advice of Charge” slip

Fees: Over-the-limit withdrawals cost $10 each. A balance-requirement fee of $8 per month is imposed unless a current balance of at least $2500 is maintained at all times.

Legislation to raise the withdrawal limit on Money Market accounts to 24 per month has been proposed several times, but never approved. For the time being, the Federal Reserve requires banks to maintain reserves on transaction accounts (i.e. checking), but not on Savings or Money Market accounts. Regulators look closely at the accounts to make sure the transaction limits are being enforced.

OTHER BUSINESS ACCOUNTS

Non-Profit Accounts: We recommend Free Business Checking for your non-profit group or association.

Business Savings: Available to any type of business, including DBA, Sole Proprietor, Corporations, etc. Interest accrues daily and pays quarterly. Interest rate may vary. FDIC insured. Withdrawals are limited to 6 per month.

Business Certificate of Deposit: Available to any type of business located in the State of Utah. FDIC insured. Click this link for CD rates.

Business Account Analysis: This account is very similar to our Commercial Checking with one important difference. The earnings credit offsets a broader list of bank services, including wires and stop payments. Account analysis is recommended for businesses with heavy wire or stop-pay volume.

Business Sweep Account: This account earns interest, is not FDIC Insured, but is backed with US Treasuries. It pays a competitive rate of interest to businesses with excess cash. The account works by sweeping funds from a transaction account (checking) to a separate investment account that earns interest. Fast facts are as follows:

• No minimum dollar requirement for checks written on the account
• $50 per month maintenance
• $10K collected is maintained in the transaction account (non interest bearing)
• Excess funds are swept each night to an interest bearing account
• Checks or other debits = 10¢ per item
• Deposit items average about 4¢ per item
• Excess funds earn interest at a very competitive rate
• The sweep account starts to make sense for the business with about $125K in excess funds