How to Open a Business Bank Account: Requirements, Documents and Top Options
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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, research options, gather the necessary documents and apply.
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 by applying on the IRS website.
1. Idenifty your business banking priorities
How your business operates should guide your choice of business bank account. Take inventory of the volume and type of transactions you make (cash, check, ACH and wire transfers) and make a list of must-have features, such as recurring bill pay or access to Insured Cash Sweep services. This will help you rule out accounts that don't support certain activities, like cash deposits or wire transfers, as well as those with low limits or high fees.
Other factors to consider when choosing a business bank account include:
2. Compare top business bank accounts
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.
American Express® Business Checking
American Express® Business Checking
$0
No monthly fees or minimum opening deposit.
No charge for incoming domestic wires.
24/7 customer support.
Can't deposit cash.
No outgoing international wire transfers.
Chase Business Complete Banking®
Chase Business Complete Banking®
$15
Unlimited fee-free electronic transactions.
Integrated credit card processing.
24/7 customer support.
Grace period on overdrafts.
Monthly fee.
Monthly limit on cash deposits, physical transactions.
Fee to use out-of-network ATMs.
Bluevine Business Checking
Bluevine Business Checking
1.50%
Industry-leading APY.
No monthly fees or minimum opening deposit. No fees at MoneyPass ATMs.
Access up to $3 million in FDIC insurance with Insured Cash Sweep.
Free incoming wires and low outgoing wire transfer fees.
Fee for cash deposits.
Fee for using out-of-network ATMs.
Does not offer jointly-owned accounts.
Other types of business bank accounts to consider
Most businesses start with a business checking account. As your business grows, you may need multiple accounts (and multiple types of accounts).
Your business may opt to have separate checking accounts: one for operating expenses and one for payroll. Opening a high-yield business savings is another smart move to earn interest on cash reserves and savings for expansion, equipment upgrades and emergencies.
Opening those 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 your account is recovered. And FDIC insurance coverage is per depositor, per institution, so spreading assets across multiple financial institutions can help safeguard your money.
Types of business bank accounts
3. Gather documents and apply
At a minimum, you'll need your name, address, date of birth 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.
Personal information
Businesses with multiple owners typically need to include personal details and identification for everyone with a 25% or more ownership stake.
Government-issued photo identification. Typically a driver’s license or passport. Some banks may ask for two types of ID.
Home address. You need to have a U.S. mailing address to apply for most business accounts. Banks typically require a physical address rather than a P.O. Box.
Personal email and cell phone number. Financial institutions use this information for two-factor authentication. A handful of online business checking accounts are mobile only and require a cell phone number to apply for an account.
Date of birth and Social Security number. Banks use this information to verify your identity, which they are required by law to do.
Business details
Most business account applications will ask for basic business information, such as:
Business name and trade name or “doing business as” name, if you have one. No official business name? You can use your own name.
Business address and phone number. You can use your home address if you don’t have an office or a storefront.
Business entity type. Sole proprietorship, partnership, corporation or LLC.
Date your business was formed. If your business is registered with the state, use that date. If not, use the date the company was founded.
Industry and type of business you operate. Certain types of businesses — such as gambling, cannabis and adult entertainment companies — cannot open a business account with most banks.
Estimated monthly transactions. Some banks will ask for expected monthly ACH, wire transfers or mobile check deposits (the number and/or the dollar amount). It's okay to use estimates here.
Business documentation
The documents needed to open a business bank account depend on how your business is set up. Here are common requirements for different entity types:
Sole proprietorships. Business name registration certificate, business license.
Partnerships. Partnership agreement, business name registration certificate, business license, state certificate of partnership.
LLCs. Articles of organization, LLC operating agreement, business license.
Corporations. Articles of incorporation, corporate bylaws, business license.
4. Fund and set up your new business account
Most business bank accounts can be opened with $0, but some business checking accounts require an opening deposit, which typically ranges from $25 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, Shipfy, 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.
