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.