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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Updated · 4 min read
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Written by Kelsey Sheehy
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Fact Checked

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.

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 may apply and can vary by financial institution. Some banks only allow businesses from certain sectors (e-commerce, for example). Others require your business to be incorporated to open an account.

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American Express® Business Checking
American Express National Bank

American Express® Business Checking

NerdWallet Rating  
5.0
APY  

1.30%

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:

A free business checking account is ideal. If you’re considering an account with a monthly fee, do the math to make sure you can hit the balance requirements to avoid it. Check out the account’s fees for things like ATM use, wire transfers and overdrafts, too.

Account

Excess Transaction Fee

ATM Fees

Wire Fees

Complete Rates and Fees

American Express® Business Checking

None (unlimited transactions).

Fee-free ATMs: MoneyPass network.

Out-of-network fees: None.

Third-party ATM fee refunds: None.

Incoming: Free.

Outgoing domestic: $25.

Outgoing international: Not supported.

Basic Business Checking

None (unlimited transactions).

Fee-free ATMs: Due to fee refunds, every ATM is essentially fee-free.

Out-of-network fees: None.

Third-party ATM fee refunds: Unlimited domestic.

Incoming: Free.

Outgoing domestic: $35.

Outgoing international: $45.

Bank of America Business Advantage Fundamentals™ Banking

Unlimited electronic. 200 non-electronic, then 45 cents each.

Fee-free ATMs: Bank of America.

Out-of-network fees: $2.50 U.S.; $5 international.

Third-party ATM fee refunds: None.

Incoming: $15.

Outgoing domestic: $30.

Outgoing international: $45.

Bluevine Business Checking

None (unlimited transactions).

Fee-free ATMs: MoneyPass network.

Out-of-network fees: $2.50.

Third-party ATM fee refunds: None.

Incoming: Free.

Outgoing domestic: $10.

Outgoing international; $25.

Chase Business Complete Banking®

Unlimited electronic transactions. 20 non-electronic transactions, then 40 cents each.

Fee-free ATMs: Chase network.

Out-of-network fees: $3 domestic, $5 international.

Third-party ATM fee refunds: None.

Incoming: Free from other Chase accounts. Otherwise, $15.

Outgoing domestic: $25, or $35 if sent from a Chase branch location.

Outgoing international: $40.

Found Small Business Banking

None (unlimited transactions).

Fee-free ATMs: None. Found is not part of a fee-free ATM network.

Out-of-network fees: None.

Third-party ATM fee refunds: None.

Incoming domestic: Free.

Outgoing domestic: $15.

All international wires: Not supported.

Grasshopper Business Checking Account

None (unlimited transactions).

Fee-free ATMs: MoneyPass and SUM networks.

Out-of-network fees: Not disclosed.

Third-party ATM fee refunds: None.

Incoming domestic: Free.

Incoming international: $5.

Outgoing domestic: $10.

Outgoing international: $25.

LendingClub Tailored Checking - Upper Tier

None (unlimited transactions).

Fee-free ATMs: Due to fee refunds, every ATM is essentially fee-free.

Out-of-network fees: None.

Third-party ATM fee refunds: Unlimited domestic and international.

Incoming domestic: Free.

Incoming international: Free.

Outgoing domestic: $18.

Outgoing international: $40.

nbkc Business Account

None (unlimited transactions).

Fee-free ATMs: MoneyPass and NBKC networks.

Out-of-network fees: None.

Third-party ATM fee refunds: Up to $12 monthly.

Incoming domestic: $0.

Incoming international: $45.

Outgoing domestic: $5.

Outgoing international: $45.

QuickBooks Checking

None (unlimited transactions).

Fee-free ATMs: Four free withdrawals per month at AllPoint network. $3 each after that.

Out-of-network fees: $3.

Third-party ATM fee refunds: None.

Incoming: Not disclosed.

Outgoing domestic: Not disclosed.

Outgoing international: Not disclosed.

Relay Business Checking

None (unlimited transactions).

Fee-free ATMs: Allpoint network.

Out-of-network fees: None.

Third-party ATM fee refunds: None.

Incoming: None.

Outgoing domestic: $5.

Outgoing international: $10.

Rho Business Checking

None (unlimited transactions).

Fee-free ATMs: None. Rho is not part of a fee-free ATM network.

Out-of-network fees: None.

Third-party ATM fee refunds: None.

Incoming: None.

Outgoing domestic: Free.

Outgoing international: Free.

U.S. Bank Silver Business Checking Package

125 free transactions (electronic and non-electronic). 50 cents each after that.

Fee-free ATMs: U.S. Bank ATMs.

Out-of-network fees: None.

Third-party ATM fee refunds: None.

Incoming domestic: $14 or $16.

Incoming international: $16.

Outgoing domestic: $30 or $40 if sent from a branch.

Outgoing international: $75.

Business bank accounts often have daily, monthly and even per-transaction caps for deposits and withdrawals, including mobile check deposits, ACH and wire transfers. Brick-and-mortar banks usually charge a fee if you exceed the account's limits. Online banks may simply stop the transaction. Read the fine print to make sure an account’s limits won’t hinder your business.

Compare customer support hours and how the bank handles requests. Can you easily call or visit a branch to talk to a real person? Or are issues generally funneled to email or in-app messaging? While async methods of customer support can be convenient, going back and forth via email to resolve frozen funds or fraudulent charges is anything but ideal.

In general, brick-and-mortar banks offer a personal touch and well-established ATM networks, along with other financial products like business credit cards and small-business loans. But they usually limit monthly transactions and charge more fees.

Online business bank accounts are more likely to offer unlimited transactions and fewer incidental fees, but you won’t be able to walk into a branch for help. Also, note that many of these are neobanks — financial technology companies that partner with banks. (Check out the fine print in the footer of the company’s website to see if they have a banking partner with FDIC insurance.)

Neobanks typically offer better tools and integrations than traditional banks, but customer support may be email or in-app only. They are more likely to change up their product — sometimes for the better, sometimes not. There are also several examples of neobanks shifting focus or shutting down entirely, leaving business owners scrambling to find a new account.

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

Best online business checking account
American Express® Business Checking
American Express National Bank

American Express® Business Checking

NerdWallet Rating  
5.0
Annual Fee  

$0

Pros

No monthly fees or minimum opening deposit.

No charge for incoming domestic wires.

24/7 customer support.

Cons

Can't deposit cash.

No outgoing international wire transfers.

Chase Business Complete Banking®

Best brick-and-mortar business checking account
Chase Business Complete Banking®
Chase

Chase Business Complete Banking®

NerdWallet Rating  
4.5
Monthly Fee  

$15

Pros

Unlimited fee-free electronic transactions.

Integrated credit card processing.

24/7 customer support.

Grace period on overdrafts.

Cons

Monthly fee.

Monthly limit on cash deposits, physical transactions.

Fee to use out-of-network ATMs.

Bluevine Business Checking

Best high-yield business checking account
Bluevine Business Checking
Bluevine

Bluevine Business Checking

NerdWallet Rating  
4.7
APY  

2.00%

Pros

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.

Cons

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

Green paycheck.
Business checkingA deposit account for everyday use, including payroll and operating expenses.
A green bank that has a coin slot at the top where a hand is depositing a coin.
Business savingsA high-yield deposit account with variable interest rates for short and long-term savings. Most don't include checks, debit cards or ATM access.
Cash and coins.
Business certificate of depositA high-yield deposit account with a fixed term and interest rate. There’s a penalty to withdraw funds before the term ends.
Green circle with upward chart.
Business cash managementA hybrid banking and investment account for startups and large companies.

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.

What you need to open a business bank account

Use 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.

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:

  • Employer identification number. You may also need to provide corresponding documents from the IRS. Sole proprietors and single-member LLCs may be able to use their Social Security number instead.

  • 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.

🤓Nerdy Tip

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.

FEATURED

 
American Express® Business Checking
American Express National Bank

American Express® Business Checking

NerdWallet Rating  
5.0
APY  

1.30%

Best Banks for Small Business
ProductMonthly feeAPYBonusMin. opening depositLearn more
American Express® Business Checking

American Express® Business Checking

NerdWallet Rating 
5.0
Learn more

at American Express National Bank

$0 1.30% 

With $0 min. balance for APY

N/A $0
Learn more

at American Express National Bank

Grasshopper Business Checking Account

Grasshopper Business Checking Account

NerdWallet Rating 
4.5
Learn more

at Grasshopper Bank

$0 2.00% 

With $0 min. balance for APY

N/A $100
Learn more

at Grasshopper Bank

Chase Business Complete Banking®

Chase Business Complete Banking®

NerdWallet Rating 
4.5
Learn more

at Chase

$15.00 

Waived with $2,000 minimum balance

N/A$300 

Requirements to qualify

$0
Learn more

at Chase

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