How To Open A Business Bank Account

Choosing the right best bank account for your business is the hard part — the easy part is applying to open a business bank account, especially with this step-by-step guide that explains the entire process.

Learn exactly what’s required to open a business bank account, how long the process takes, how much applying for a business bank account costs, and more.

What Are The Requirements To Open A Business Bank Account?

To be eligible to open a business bank account, you’ll need a business with an EIN (sometimes, an SSN will suffice). You’ll then need to meet the eligibility requirements set for by the business bank account you choose.

Depending on the bank, you may need to meet criteria regarding:

• The location of your business
• Your citizenship
• Your age
• Your business structure
• Potentially, your personal credit score
• Your business industry*

*Some banks have a list of high-risk industries that they won’t work with. Learn how to tell if your business is high-risk.

What Do I Need To Open A Business Bank Account?

To open a business bank account, you’ll need a variety of documentation and paperwork to verify your personal and business details. The exact documents required to open a business bank account can vary from bank to bank, but in general, you can expect to need:

• Business name and address
• Personal information for everyone listed on the application (date of birth, government-issued identification, etc.)
• Business tax ID number, EIN, or SSN
• Business License
• Business formation documentation
• DBA documentation if the business operates under a different name

How Long Does It Take To Open A Business Bank Account?

The timeline for getting a business bank account varies wildly from bank to bank. Some online banks boast same-day approval decisions (some as quickly as 10 minutes), while other banks can take one to four weeks to provide approval.

Sometimes, the application process takes longer if the bank needs to request follow-up documentation or information, so having all of the required documentation ready beforehand can help ensure that you can answer any follow-up questions or requests quickly.

How Much Does A Business Bank Account Cost?

The cost of a business bank account varies. Many of the top business bank accounts come with no monthly fees or at least give the option to waive monthly fees. Others charge a range of fees, including a monthly account fee, ATM fees, a fee for dropping below a minimum balance, cash deposit fees, transaction fees, and more. However, no reputable bank charges application fees.

Once your application is approved, you may need to provide a minimum deposit.

How To Open A Business Bank Account

Opening a business bank account doesn’t have to be difficult — and if you’re familiar with opening a personal bank account, you’ll find the process familiar. Follow these seven steps to learn how to open a business bank account.

Decide What Type Of Business Bank Account You Need

First things first, decide which type, or types of business bank account you’ll need.

Having a business checking account is the bare minimum since you’ll need one for daily business operations and if you ever want a business credit card or loan.

However, most businesses will find that they need a business savings account as well for storing cash reserves, emergency funds, or savings for specific goals like new equipment, new hires, or inventory purchases.

The type of bank account/s you settle on will significantly pick your banking decision since not every business bank has the same account offerings.

Choose The Right Business Bank For Your Business

If you haven’t done so already, take a look at the best business bank accounts to choose the right banking institute for your business.

When choosing a good business bank account, consider:

• Fees
• Rewards & perks
• Customer support
• Supported transaction types
• Branch or ATM access

Gather The Documentation You Need To Open A Business Bank Account

To make applying for a business bank account easier, you’ll want to gather the proper documentation first. This includes personal information, business information, and a handful of documentation.

Here’s what you need to open a business bank account:

• Personal ID & SSN
• Personal contact information (phone, email, address, etc.)
• Business name (and DBA name, if applicable)
• Business structure
• EIN
• Business contact information (phone, email, address, etc.)
• Business license
• Business name registration
• Articles of business formation
• Articles of incorporation (if applicable)
• Partnership agreement (if applicable)

Fill Out Your Bank’s Application

Once you’ve gathered your business documentation, it’s time to do the actual busines sbank application! Many banks allow you to complete this process online, but some banks require an in-person application. Be sure to check the exact process with your bank.

If you aren’t sure what your chosen bank’s application process is, our banking reviews include an application process breakdown — or you can contact the bank directly via their website or customer support.

Provide Any Followup Answers Or Documentation

Once you fill out and complete your bank account application, you may get a response right away, you may have to wait for a decision, or you may have to supply additional information before getting a decision.

Make sure to check your communications regularly so you don’t miss any requests for additional information. The faster you can respond to any follow-up questions or requests, the faster you’ll get to an application decision.

Make Your Initial Minimum Deposit

Each bank has its own requirements regarding how much money you’ll need for an initial deposit when you open your business bank account. Some banks allow you to open an account without adding any money at all right away, while others require a set amount. If an amount is required, it’s usually less than $100. Regardless, you’ll want to ask so that you can be prepared.

Also, ask about how you can make that opening deposit. Your business bank may allow you to deposit a check, make a cash deposit, or send money via wire or ACH. Whatever the amount and method, make sure they’ll work for you.

Set Up Your Business Bank Account

All that’s left now is setting up your approved business bank account!

Make sure you talk with your banking institution about how to deposit initial fund, what transaction limits there are, and how quickly funds are accessible.

If your account is a checking account, you’ll also want to check if you need to order debit cards or if they are sent automatically. Many banks now offer virtual debit cards or digital wallet options so that you can start using your account right away, even if you’re waiting for physical cards.

FAQs On How To Open A Business Bank Account