How to Open a Business Bank Account
One of the first things you’ll want to do after starting your business is to open a business banking account.
Why Open a Business Bank Account
You’ll want a business bank account to run all customer payments through, even if you’re a sole proprietor, so that you can keep your business and personal finances separate. This is crucial for good bookkeeping and accounting.
You’ll also need a business banking account to set up any kind of debit or credit card processing.
The Required Documents
Here’s what you’ll need to bring to the bank when you open a business bank account.
1. Government Issued ID
Businesses with multiple owners typically need to include personal details and identification for every owner with 25% or more ownership in the business.
2. Employer Identification Number
If you are a sole proprietor or a single person LLC, and you do not have an EID, you’ll use your social security number.
3. Business details
- Business Name
- Business Address
- Trade name or DBA
- Business entity type
- Business Industry
4. Formation documents
Here are the formation documents you’ll need by structure type
- Sole proprietor: Registration certificate, business license.
- Partnerships: Partnership agreement, business license, state certificate of partnership.
- Corporations: Articles of incorporation, corporate bylaws, business license.
- LLCs: Articles of organization, LLC operating agreement, business license.
5. Opening deposit
Today, most personal checking accounts are free, but many business banking accounts require a minimum balance or fees.