How to Open a Business Bank Account: Requirements, Documents and Top Options
You need to be at least 18 years old and operate a business in the U.S. to open a business bank account.
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The process to open a business bank account looks largely the same whether your business is brand new or time tested. You need to identify your business's needs, choose a business bank, gather the necessary documents and apply.
🏦 COMPARE NOW: NerdWallet's best business checking accounts
1. Gather your documents
At a minimum, each person who owns 25% or more of your business will need to provide their name, address, date of birth, Social Security number and a government-issued photo ID to open a business account.
Beyond that, the documents and information needed to open a business account will vary by bank and your business entity type.
New companies forming as an LLC, corporation or partnership should formalize the business's legal structure and apply for an employer identification number (EIN) before opening a business account. You can get an EIN instantly on the IRS website.
Sole proprietors can open a business bank account without an EIN — you'll just use your Social Security number or ITIN instead. You can't open a business bank account with only an EIN, however. Banks have to verify their customers' identities, so you'll always have to provide personal details like an ID or your SSN.
What you need to open a business bank accountUse this checklist to make sure you have the documents and information needed to open a business account. |
Personal information |
☐ Government-issued photo ID (some banks may ask for two). ☐ Home mailing address. ☐ Personal phone number. ☐ Personal email. ☐ Date of birth. ☐ Social Security number. |
Business information |
☐ Employer identification number (if you have one). ☐ Business name. ☐ Trade name or dba name (if applicable). ☐ Business address and phone number. ☐ Business entity type (sole proprietorship, partnership, LLC or corporation). ☐ Date your business was formed. ☐ Industry and type of business you operate. ☐ Estimated monthly transactions. |
Business documentation |
Sole proprietorships ☐ Business name registration certificate. ☐ Business license. LLCs ☐ Articles of organization. ☐ LLC operating agreement. ☐ Business license. Partnerships ☐ Partnership agreement. ☐ Business name registration certificate. ☐ Business license. ☐ State certificate of partnership. Corporations ☐ Articles of incorporation. ☐ Corporate bylaws. ☐ Business license. |
2. Choose a business bank account
Here are a few of NerdWallet's top-rated business bank accounts, which are evaluated based on fees, perks and accessibility, among other factors. To view the full list, see our roundup of best business checking accounts.
| Product | Monthly fee | APY | Bonus | Min. opening deposit | Learn more |
|---|---|---|---|---|---|
 American Express® Business Checking NerdWallet Rating Learn more at American Express National Bank, Member FDIC | $0 | 1.30% With $0 min. balance for APY | 30,000 points Requirements to qualify | $0 | Learn more at American Express National Bank, Member FDIC |
 Bluevine Business Checking NerdWallet Rating Learn more at Bluevine, Deposits are FDIC Insured | $0 | 1.50% With $0 min. balance for APY | $300 Requirements to qualify | $0 | Learn more at Bluevine, Deposits are FDIC Insured |
 Chase Business Complete Banking® NerdWallet Rating Learn more at Chase, Member FDIC | $15.00 Waived with $2,000 minimum balance | N/A | $500 Requirements to qualify | $0 | Learn more at Chase, Member FDIC |
 Found Small Business Banking NerdWallet Rating Learn more at Found, Deposits are FDIC Insured | $0 | N/A | $125 Requirements to qualify | $0 | Learn more at Found, Deposits are FDIC Insured |
How your business operates should guide your choice of business bank account. Consider the following factors:
Most businesses start with a business checking account. As your business grows, you may need multiple accounts (and multiple types of accounts). For instance, your business may opt to have separate checking accounts: one for operating expenses and one for payroll. Opening a high-yield business savings account is another smart move to earn interest on cash reserves.
Types of business bank accounts
Opening accounts at multiple business banks can offer benefits as well. If one account is frozen for fraudulent charges — or your business bank fails — you'll still have access to funds held at other banks while that account is recovered. And FDIC insurance coverage is per depositor, per institution, so spreading assets across multiple financial institutions can help safeguard your money.
3. Apply for a business bank account
Most banks accept online applications for business accounts. Once you prepare your documents, you should be able to submit an application in a matter of minutes. If your desired bank has branches, you can likely apply in person as well.
🏦 COMPARE MORE: NerdWallet's best banks for small businesses
You need to be at least 18 years old, live in the United States and operate a business in the U.S. to open a business checking account at most financial institutions. Mercury and Brex are among the few business accounts available if you live outside of the U.S., provided your business operates in the U.S. (or plans to).
Banks also require your business operations to be legal and in an eligible industry. Ineligible businesses may include those dealing with:
Illegal gambling.
Pornography.
Cryptocurrency.
Firearms.
Cannabis.
Money services (check cashing, currency exchange, etc.).
Business owners with a negative ChexSystems report may also be denied a business bank account.
Additional requirements to open a business account can vary by financial institution — for instance, not all business banks work with sole proprietors.
4. Fund your new account
Most business bank accounts can be opened with $0, but some business checking accounts require an opening deposit of up to $100. Business savings accounts can have higher deposit requirements — anywhere from $1,000 to $25,000, depending on the account — but you can still open many with $0 to start.
If your business bank account has a sign-up bonus, review the terms carefully. Many promotions require you to deposit a certain amount of money within the first 30 days and then maintain an average balance for several months.
Avoid depositing all of your business’s assets at once. Most business accounts place a longer hold on deposits for new accounts, and you could lose access to those funds for 7 to 10 business days. Other accounts will flag large deposits, followed by large transactions, for fraud.
Once your account is open and funded, take the following steps to set up your account:
Download the mobile app and log in to the online banking platform.
Add authorized users and assign appropriate permissions.
Connect your account to your business accounting software and any relevant business tools (Stripe, Square, QuickBooks, Shopify, Gusto, etc.).
Set up recurring payments and account alerts.
Your main business debit card will ship automatically and typically arrive in seven to 10 business days. You can also order checks and request additional employee debit cards, if your bank offers these.
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Note on American Express® Business Checking: At Allpoint® and MoneyPass® locations in the U.S., you can withdraw cash and get balance information with no fee. Access to ATMs outside of the Allpoint® and MoneyPass® networks are subject to fees by the ATM owner and/or network. ATM withdrawal limits apply. American Express applies foreign exchange fees to withdrawals in foreign currencies. American Express does not accept ATM cash deposits into your Business Checking account at this time. Visit americanexpress.com/atm-locator to find participating ATMs in the U.S.
