How to Open a Business Bank Account: What You Need, Where to Open One
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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To open a business bank account, you need to:
Choose a business bank and an account at that bank.
Gather the necessary documents.
Apply online or at a branch location.
Fund the account.
New LLCs, corporations or partnerships must take additional steps. They should formalize the business's legal structure and apply for an employer identification number (EIN). You can get an EIN instantly on the IRS website.
1. Choose a business bank
All businesses should start with a business checking account. Choose your bank based on this account, since you’ll use it most often. As your business grows, you can shop around for money market accounts, savings accounts and more.
Evaluate accounts based on the following:
Monthly maintenance fee. Most online accounts don’t charge a monthly fee, but most brick-and-mortar accounts do. Usually, they’ll waive it if you can maintain a certain minimum balance.
Transaction and deposit limits. If your business deals often in cash or wire transfers, check whether the bank’s fees and limits will work for you.
Type of institution. Whether you prefer an online bank, a brick-and-mortar bank, a credit union or a neobank is up to you.
Here are a few of NerdWallet's top-rated business checking accounts.
Bluevine: Best for online banking
Bluevine's account stands out for its competitive APY, no monthly fees and no minimum opening deposit. Virtually all business types can open a Bluevine checking account online.
Bluevine Business Checking
1.50%
Found: Best for solopreneurs
Found's account is available to sole proprietors, single- and multi-member LLCs and corporations. This online account includes tax-planning and contractor management tools. It’s a good fit to help self-employed workers stay on top of their finances.
Found Small Business Banking
$0
American Express: Best for customer support
American Express’s account has a competitive APY and no monthly fee. The bank is online-only, but customers have access to 24/7 customer support.
American Express® Business Checking
$0
Chase: Best brick-and-mortar option
Chase offers our top-rated business checking account from a brick-and-mortar bank. This account has a monthly maintenance fee of $15, with multiple ways to waive it. Those include maintaining a daily balance of $2,000 or more. Chase users can also use Zelle for Business to send and receive payments.
Chase Business Complete Banking®
$15
2. Gather your documents
At a minimum, you'll need your name, address, date of birth and a government-issued photo ID. Beyond that, requirements vary by bank and your business entity type.
Here’s what you need to open a business bank account.
Personal information
Businesses with multiple owners typically need details for everyone with a 25% or more ownership stake.
Government-issued photo identification. Usually 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 law requires them to do.
Business information
Most business account applications will ask for basic business details, 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 cannot open a business account with most banks. These include gambling, cannabis and adult entertainment companies.
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 OK to use estimates.
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.
3. Apply for an account
Applying for a business bank account should only take a few minutes. Most businesses can apply online. But banks with branch locations generally take in-person applications too.
The application will ask for much of the information you collected above. Banks don’t check your credit score when you apply to open an account.
You can open a business bank account without an EIN — you'll just use your Social Security number or ITIN instead. You can't open a business bank account with only an EIN, however. Banks have to verify their customers' identities. That means you'll always have to provide personal details like an ID or your SSN.
In general, banks can approve applications within minutes. You can access your new account right away.
Two reasons a business bank account application might be denied:
You’re ineligible for an account. You’ll need to live and operate your business in the U.S., be at least 18 years old and work in an eligible industry. Illegal gambling, pornography, cryptocurrency, firearms, cannabis and money services (like currency exchange or check cashing) businesses can’t open accounts at most banks.
You have a negative ChexSystems report. These reports list actions like bounced checks, overdrafts and forced closed accounts.
If you have a negative ChexSystems report, you can take steps to improve it. Otherwise, ask banks in advance if they run ChexSystems reports for business accounts or not.
4. Fund your new business account
You can open most business bank accounts with $0. But some business checking accounts require an opening deposit, which typically ranges from $25 to $100.
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 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 get your account up and running:
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, Shopify, Gusto, etc.).
Set up recurring payments and account alerts.
Banks will ship your business debit automatically. You should expect it to arrive in around 7 to 10 business days. You can also order checks and request employee debit cards, if your bank offers these.
* Note on American Express® Business Checking: At Allpoint® and MoneyPass® locations in the U.S., you can withdraw cash and get balance information with no fee. Access to ATMs outside of the Allpoint® and MoneyPass® networks are subject to fees by the ATM owner and/or network. ATM withdrawal limits apply. American Express applies foreign exchange fees to withdrawals in foreign currencies. American Express does not accept ATM cash deposits into your Business Checking account at this time. Visit americanexpress.com/atm-locator to find participating ATMs in the U.S.
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