Requirements To Open A Business Bank Account

What kind of documents should you be ready to share when you want to open a business checking account? This complete guide will show you the requirements for your business type and help you prepare.

WRITTEN & RESEARCHED BY
Chelsea Krause
Lead Staff Writer

Last updated onUpdated October 16, 2023

REVIEWED BY

Editor & Senior Staff Writer

Advertiser Disclosure: Our unbiased reviews and content are supported in part by , and we adhere to strict to preserve editorial integrity.

Ready to open a business bank account? In this post we’ll explain the requirements for opening a business account and point you toward some of the best business bank accounts around.

Table of Contents

Video: 5 Steps To Open A Business Bank Account
Business Account Requirements Checklist
What Do You Need To Open A Business Bank Account?
How To Find The Right Bank Account For Your Business
FAQs: How To Open A Business Bank Account

Video: 5 Steps To Open A Business Bank Account

You may be wondering if it’s time to start using a business bank account for your small business or side venture. Because the answer is almost always Yes, we’ll show you what you need to open a business bank account and how to get started.

Business Account Requirements Checklist

Here’s a quick list of the types of information you need to open a business bank account:

Personal Information

Every person you list on the bank application will need to provide the following:

Government-issued identification, such as a driver’s license or passport
Address
Phone number
Email address
Social Security number

Business Information

You may not have everything on this list, and that’s okay. Just be ready to share what you can:

Business name
Business structure
DBA name
Employer Identification Number (EIN)
Business contact information including physical and mailing address, email, and phone.

Business Documentation

The documentation you’ll need to show will depend on your business type but may include:

Business license
Articles of formation
Partnership agreement
Business name registration
Articles of incorporation if applicable

What Do You Need To Open A Business Bank Account?

	Sole Proprietor	Partnership	LLC	Corporation
Government ID
Contact Info
Social Security Number
Business Address
Mobile Phone Number
Business Name
Business License	If available
DBA	If available	If available	If available	If available
EIN	If available
Business Address
Business Formation Documents	N/A
Articles Of Incorporation	N/A	N/A

Some of the document requirements for opening a business account can vary depending on your business type. Others are universal.

Personal Information Needed To Open A Business Bank Account

Every person you list on the bank application will need to share the following:

Government-Issued Identification: driver’s license or passport
Contact Information: address, phone number, and email
Social Security Number

Business Information Required To Open A Business Bank Account

Business Name
DBA (if your business operates under a name other than its officially registered name)
Employer Identification Number (if you don’t have an EIN, your Social Security number should do)
Business Contact Information, including physical and mailing address, email, and phone.
Business License

Business Documentation For Opening A Business Bank Account

How is your business structured determines what information you’ll need to show. Read below to find the documentation needed for your business type:

Sole Proprietor

If you’re operating as a sole proprietorship, you probably don’t have or need any official business documentation beyond a business license.

You can start your search for the right business bank account by checking out our list of the best bank accounts for freelancers, independent contractors, and other self-employed workers.

Related: Don’t overlook the importance of business insurance just because your business is small. We’ve highlighted some of the most important types of insurance for sole proprietors to help you find the right coverage at a price you can afford.

Partnership

If you formed your business as a partnership, you and your partners should have a formal written agreement about how you’ll run the business together and divide the profits. Be prepared to show this documentation.

Be ready to share your business license, too.

LLC

If you have taken your business organization to the next level and incorporated, your business is a separate legal entity from its owners. Your business can enter contracts, loan and borrow money, sue and be sued, own assets, and more.

You’ll need to show your articles of incorporation, your LLC operating agreement, and a valid business license when you open a business bank account. You can find a good match in our list of the best bank accounts for LLCs.

Corporation

If your business is a corporation, be prepared to show the paperwork that explains how your business is structured.

The documentation you’ll need to show may include your business license, articles of incorporation, and your corporate bylaws.

How To Find The Right Bank Account For Your Business

Once you’ve decided you need a business bank account, your next challenge is deciding where to go to start one. You have many options, such as:

The bank where you have your personal accounts
An online bank
A local credit union

Before you make an appointment or complete an online application, it’s a good idea to make sure you’re familiar with the differences between personal vs. business banking services. Once you know what to look for, start talking to a couple of your top choices.

Take your time evaluating your top choices. Do they offer a business checking account that meets your needs? Are you looking for the best business savings account as well? You can maximize your interest-earning potential when you narrow your search to the best high-yield business savings.

Compare rates and available services, even ones you may not need right now, like a line of credit. Your goal should be finding a business partner who can stand with you, helping your business now and as you grow and succeed.

Related: If you’re looking for a completely fee-free bank, start your search with our list of the best free business bank accounts.

FAQs: How To Open A Business Bank Account

What do you need to open a business bank account?

The requirements for getting a business bank account depend on your business type. Every business should expect to show personal identification, a business license, and a Social Security number or business EIN. While that may be enough for sole proprietors, LLCs and corporations will have to show more formal documentation about their business formation and structure.

What is the easiest way to open a business account?

You can open a business bank account without leaving your home or office, because most banks allow you to open a business account online. Visit the website of your preferred bank and look for the Apply Now option to get started.

How much money do you need to open a business bank account?

Many business bank accounts have $0 opening deposit requirements. Some of our favorites include Square Banking, Bluevine, Lili, Mercury, and Novo.

Do you need an EIN to open a business bank account?

You do not need to have an EIN, or employer identification number, to open a business bank account. If your business does not have an EIN, you will need to share your personal Social Security number.

Can I use a personal bank account for my small business?

While you can use a personal bank account for your small business, it’s usually not a good idea. Mixing your personal and business finances can increase your personal liability for business issues, raise your risk of an IRS audit, and make it harder to track your income and expenses.

Bio
Twitter
LinkedIn
Latest Posts

Chelsea Krause

Lead Staff Writer

Chelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been with Merchant Maverick helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well. She currently resides in Boise, Idaho.

@AccountingMage

View Chelsea Krause's professional experience on LinkedIn.

Latest posts by Chelsea Krause (see all)

How To Set Up Gusto Payroll - April 11, 2024
The Best Business Checking Accounts - February 5, 2024
Live Oak Bank Review - December 22, 2023
What Is Depreciation? - November 27, 2023
What Is A Tax Deduction? - November 21, 2023

Show less

We Want Your Feedback

Let us know how well the content on this page solved your problem today. All feedback, positive or negative, helps us to improve the way we help small businesses.