Opening a business bank account is easy — and typically a necessity. Business accounts help small-business owners manage company finances, streamline invoicing and simplify tax filing.
You can typically apply in minutes for a business checking account as long as you have the right details and documents, especially if you open an account online. Here’s what you’ll need, how to open a business bank account and our tips for how to find the best bank for your small business.
Most banks require the following information to open a business account:
1. Personal identification
Businesses with multiple owners typically need to include personal details and identification for every owner with 25% or more ownership in the business. That includes the following:
- Government-issued photo identification, such as a driver’s license or passport (some banks may ask for two types of ID).
- Home mailing address, personal email and phone number.
- Date of birth.
- Social Security number.
2. Employer identification number
If your business has an employer identification number, you need to provide that along with any corresponding documents from the IRS. Sole proprietors and single-member LLCs may be able to use their Social Security number.
3. Business details
The business account application will ask for your business name and address, as well as your trade name or DBA name, if applicable. Beyond that, you’ll need to list your business entity type (sole proprietorship, partnership, LLC or corporation) and disclose the industry you’re in and type of business you operate.
4. Organizing documents, agreements
The documents you need to provide 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.
5. Opening deposit
Most business bank accounts can be opened with $0, but some business checking accounts require an opening deposit, which can range 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.
The exact documents and information needed to open a business account can vary by bank, entity type and the type of account you’re opening, so check with the business bank beforehand to ensure you have all the necessary paperwork.
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. |
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. |
There are several types of business bank accounts available — business checking accounts, savings accounts, merchant services and even business credit cards — each with its own purpose and benefits. Chances are your company will use more than one.
Best for: Everyday use | Best for: Long-term savings | Best for: Accepting debit and credit card payments |
What to keep in mind:
| What to keep in mind:
| What to keep in mind:
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*You need to open a business checking account before you can get a merchant account, which is used for accepting debit or credit card payments. Learn more about merchant accounts here.
Consider what type of business bank account you need and whether you want to open your account online or in person. Then, compare your business bank account options, taking the following factors into account:
- Monthly fees.
- Minimum balance requirements.
- Included fee-free transactions.
- ATM access (withdrawals and deposits).
- Wiring, transfer and payment capabilities.
- Incidental fees (stop payment, nonsufficient funds, overdrafts).
- Online and mobile banking.
- Additional features, such as bill pay, invoicing or integrations with other business tools.
Not sure where to start? Here are a few of our picks for best business checking accounts.
Monthly fee $0 | Monthly fee $15.00 Waived with $2,000 minimum balance | Monthly fee $0 |
APY N/A | APY N/A | APY N/A |
Bonus N/A | Bonus $500 Requirements to qualify | Bonus N/A |
Frequently Asked Questions
Freelancers, independent contractors and other sole proprietors can open a business bank account in their personal name, assuming the business doesn’t have a registered “doing business as” or trade name. Business owners who operate an LLC, partnership or other business entity should use the company’s name when opening a business bank account.
You can open most business bank accounts with a $0 opening deposit, though some business accounts do require anywhere from $25 to $100 deposit to open an account. A handful of business savings account have a higher bar — anywhere from $1,000 to $25,000 to open an account — but these are the exception, not the norm.