How To Open a Business Bank Account in 6 Steps + Checklist

This article is part of a larger series on Business Banking.

• 1. Gather Required Documents
• 2. Review Terms and Features
• 3. Select the Right Type of Account
• 4. Learn Account Costs
• 5. Open Your Account
• 6. Deposit Your Funds
• Benefits of Opening an Account
• FAQs
• Bottom Line

The process of opening a business bank account is easy and can be completed in as little as a few minutes. The steps in this guide will help you through it, from gathering required documents to depositing funds into the account. Before beginning the application process, knowing what documents will be needed to open an account is important. The specific documents required will vary depending on how your business is organized.

To assist you further, we included a free downloadable checklist that will show you the documents needed to open a business bank account based on how your business is organized. Some documents will be required of all signers, regardless of what type of business you operate.

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Business Bank Account Required Documents Checklist

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Step 1: Gather Required Documents

Before opening a business bank account, it is important to ensure you have all the required documents needed. Each bank will have slightly different requirements, but the list here should cover almost everything you need.

Regardless of how your business is organized, certain business and personal documents are required across all business types.

General Business Bank Account Requirement

• Personal Requirements
• Business Requirements

• Personal identification: You will need up to two forms of personal identification, one of which will need to be a government identification.
• Tax number, if using a Social Security number: If your business uses your Social Security number for tax purposes, you will also need to provide that. It is one of the few cases when you can open a business bank account without an employer identification number (EIN) and is reserved for sole proprietors and single-member limited liability companies (LLCs).

• Tax number, if using an EIN: If your business has an EIN, you will need to provide that for tax purposes.
• Business licenses, if required: If your business has any local or state licenses it had to obtain, you may be asked to provide those to the bank.
• Name and address of the business
• Date business was established
• Country and state of legal formation and primary operation

Specific Account Requirements Based on Organization Type

The following document may be required of a sole proprietor:

• Fictitious business name certificate: Sole proprietorships will need to furnish a fictitious business name certificate, also known as a doing-business-as (DBA) certificate if your business operates under a different name than your own.

The following documents may be required for a partnership:

• Organization documents: These include your business partnership agreement and any other organization documents that you may have prepared when you formed your partnership.
• Other potential documentation: You may also need to provide a signed declaration of unincorporated business and any required business licenses. Business licenses are common with healthcare businesses or restaurants.

The following documents may be required of an S corporation (S-corp) or C corporation (C-corp):

• Articles of incorporation and bylaws: A copy of your certified articles of incorporation will be required. Some banks may also require a current copy of your bylaws.
• Corporate charter: If your articles of incorporation don’t provide sufficient information regarding who is authorized to sign, you may also need to provide an additional corporate charter that specifies this information.
• Corporate resolution: You might also need to provide a corporate resolution signed by all of your officers and a signature card signed by the account signers.
• Business licenses: Some banks may require you to provide a business license.
• Additional requirements for nonprofits: If you’re operating as a nonprofit organization, you’ll need to show your 501(c) letter from the IRS or other tax-exempt documentation.

The following documents may be required of an LLC:

• Articles of organization: Similar to articles of incorporation, you’ll be required to provide a certified copy of your articles of organization. This document may also be referred to as a certificate of organization in your state.
• Operating agreement: You’ll need to provide an operating agreement that states those members of the LLC who have the authority to transact business.
• Other potential documentation: Banks may also require you to provide your current business license.

Step 2: Review Bank Terms and Features to Narrow Choices

In step 3, we’ll recommend some potential banks and banking providers. However, before choosing a bank, you need to consider the following factors:

• Existing banking relationship: If you have an existing banking relationship with a provider, it may be convenient to open your business accounts with the same one. You may get discounts on banking services and even rate discounts on lending products. Plus, as you build your business credit, the existing relationship could help you obtain loans to help your business grow.
• Physical branches or online only: Does your business need to visit a branch location regularly, or can you conduct all of your business online? This is something to consider before choosing a bank. For example, if your business makes regular cash deposits, a bank with a branch will make that process easier with likely fewer fees.
• Location and business-type eligibility: Just because a bank branch has online banking and a great website doesn’t mean you’ll be eligible to get an account there. Some branches require you to operate in certain states to open an account with them. Banks also have a list of prohibited business types, such as gambling, that will be ineligible for an account.
• Mobile app and online access: Almost every bank offers a mobile banking product, but not each one has a good app or online interface. If having mobile access and conducting online transactions will be a regular part of your business, you need to choose a provider that has a great app and mobile banking platform.
• Potential fees: Even free business checking accounts often have some fees associated with the account. Consider your normal monthly transactions and calculate the estimated fees you may have to pay with each bank before choosing a provider.
• Convenience: If you need to visit branch locations or ATMs regularly, be sure they are conveniently located near your business.
• Support for your business growth: You want a bank that can scale its services to match the growth of your business. Whether you need other types of deposit accounts, lending products, or merchant services, make sure the bank is ready to serve your future needs.

In some situations, you may need to find a bank that doesn’t use ChexSystems based on several factors. About 20% of financial institutions, mostly online banks and fintechs, don’t use ChexSystems as part of the account application and opening process.

Step 3: Select the Right Banking Provider and Type of Bank Account

There are many choices for the best banks for small businesses. Some offer traditional, brick-and-mortar bank locations, while others are entirely online. Once you choose a bank, you need to select an account type that will work for your business. Some banks offer promotional bonuses when you sign up for a new account.

Here are several types of accounts to consider when opening an account, with a suggested provider for each type of account:

• Free business bank account: Several banks will waive fees or provide fee-free accounts. Keep in mind that while these accounts may be largely free, some fees may be charged for some business services. The bank should disclose those before opening an account. If you need a great option for a free business checking account, visit Bluevine’s website for more information.
• Traditional business checking account: These are checking accounts that offer a wide variety of business services. Many of these banks offer physical locations if needed and, even when they do, they also offer the option to conduct all business online. Check out U.S. Bank’s website for more information on a traditional business checking account.
• Online business checking account: Fintech companies provide online business checking accounts, many of which come with limited fees and unique features. These banks are online only, which is not ideal for businesses that handle cash regularly. Found is a great option for an online-only account thanks to its built-in bookkeeping software. Head over to Found’s website to open an account.
• Business savings accounts: Several business banks offer savings, money market, and certificate of deposit (CD) accounts that draw interest, allowing your reserve funds to grow. If you want to open a business savings account, visit Live Oak Bank’s homepage. It is our choice for the best business savings account.

You may want to consider opening a business bank account along with additional business products at the same financial provider for a more streamlined and efficient way to manage your business. For example, combining your business bank account with your business credit card and credit card processing provider may give you access to discounts and allow for easier product and service integration.

Step 4: Learn the Possible Account Costs

After steps 2 and 3, you may have a banking provider and account in mind. But before you sign up for an account, you need to be aware of the potential costs and fees that come with the account.

While some account fees can be waived if you meet certain criteria, others are charged if you exceed a threshold of free monthly transactions or cash deposits. Before choosing a bank account, get a disclosure of all the fees the bank charges on its checking products.

Here are examples of some of the fees that banks charge. Click the tab for the type of account and its typical fees, along with other fees charged with most accounts.

Here are the typical fees charged by a business checking account:

• Monthly fee ($0 to $95): While some banks don’t charge a monthly fee, others will charge a fee that is generally waivable once a number of monthly transactions are completed or if you maintain a minimum balance in the account.
• Transaction fee (40 to 50 cents each, generally): Some banks offer unlimited free transactions, while others give you a monthly limit of free transactions and charge 40 to 50 cents for each excess transaction.

Here are the typical fees charged by a business savings account:

• Monthly fee ($0 to $15): Some banks don’t charge a monthly fee, but some will charge a fee that is generally waivable if you maintain a minimum balance in the account.
• Transaction fee ($5 to $20 each): While some banks now allow more than six transactions per month in savings accounts, others will charge you if you exceed six transactions—and those fees can be quite high. Regular excess transactions can result in the account being reclassified as a non-interest-bearing account, so be sure to read the fine print.

Here are the various fees that may be charged to any account:

• Cash deposit fee (varies): Fee that’s charged if cash deposits exceed the monthly allowance, which often starts at $5,000 a month. You are usually charged a fee of anywhere from $2.50 to $3 for every $100 beyond the free cash deposit limit.
• ATM fee ($2 to $3 per transaction): Charge for ATM transactions at out-of-network ATMs. Keep in mind that out-of-network ATMs may charge their own separate fee for ATM usage
• Wire transfer fee (varies): Fee assessed on domestic and international incoming and outgoing wire transfers, with outgoing international wire transfers being the most expensive. Some international wires can cost more than $100.
• Statement fee (up to $5 per statement): Fee is assessed by some banks for your monthly bank statement to be paper-generated, typically waived by having the statements emailed to you each month.

Step 5: Open Your Account Online or In Person

Once you have chosen the bank and account type and you have all your paperwork ready, it’s time to open your business bank account. Some banks require you to visit a branch to open your account, though others will allow you to complete the entire process online.

If you choose a bank that requires a branch visit, make sure that there is a branch near your business and that you know who the bank requires to sign for the account. If there are multiple business partners, they may also have to sign to open the account. Additionally, if you have any employees that you want to have signing powers on the account, they will likely need to stop by a branch location as well.

Step 6: Deposit Your Funds

The final step is depositing funds into the account. Some accounts require you to make an opening deposit, while others will not. You can deposit cash or checks or make an electronic transfer into the account. Electronic transfers can be done by ACH or wire transfer.

Most accounts allow you to deposit checks on the app through mobile deposit capture. If your business plans to deposit many checks regularly, you may consider a check scanner for faster deposit. Your bank should be able to assist you through merchant services on products that best meet your business needs.

Benefits of Opening a Business Bank Account

There are many benefits to opening a business bank account. The most important ones include that it

• Keeps your business and personal finances separated
• Helps you build your business credit
• Lets you assess your business performance more easily
• Lends credibility to your business
• Helps simplify tax season
• Helps you build a banking relationship
• Allows you to accept credit card payments

If you have an existing business checking account at another bank that you don’t plan on using anymore, you may want to close that when you open your new account so that it doesn’t become a dormant account. Check out our guide on how to close a business checking account to guide you through the process.

Frequently Asked Questions (FAQs)

When looking for the best bank for your small business, it is important to assess what services your business will need and find a bank that best meets those needs. For example, if your business needs to make regular cash deposits, choosing a bank with physical locations is essential to make that process easier and less expensive.

Chase is the best bank for startups, thanks to scalable banking services that can grow as your business grows. It also offers excellent industry-leading credit cards and lending products, along with payment services, cash flow management, and merchant services through J.P. Morgan.

To open a business bank account, follow these six steps:

1. Gather personal and business identification documents the bank will require.
2. Review bank terms and conditions to narrow your choices down.
3. Select the right banking provider and bank account for your business needs.
4. Learn about the potential costs of your new bank account.
5. Open the account in person or online.
6. Deposit funds into your new account.

Bottom Line

Opening a new business bank account can be a very easy process with a little preparation work beforehand. If you gather any documents you need and do a little research into potential banks and account types, opening a business bank account will be easy and relatively fast. You can use your new account as soon as the same day. Assess what you need from your business bank and choose the bank and account that best meets your business needs.

About the Author

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Matthew Sexton

Matt Sexton is a banking and finance expert at Fit Small Business, specializing in Business Banking. Since starting at FSB more than two years ago, he has written more than 200 articles reviewing banking and financing providers and buyer’s guides. He holds a bachelor’s degree from Northern Kentucky University and has more than 15 years of finance experience and more than 25 years of journalism experience. He has worked for both small community banks and national banks and mortgage lenders, including Fifth Third Bank, U.S. Bank, and Knock Lending.