While a business bank account isn’t a requirement for every business owner, keeping your personal and business finances is a good idea. Opening a separate business bank account can make managing things like taxes and book and record keeping much easier.
Opening a business account is similar to opening a personal one, but you’ll need to provide more documentation to apply.
Just like a personal bank account, you must verify your identity and provide personal information to get a business bank account. You’ll need to provide your valid government-issued ID, residential address, date of birth, Social Security number and citizenship status.
Next, you’ll need to provide information about your business. The exact documents you need vary depending on your business structure and can include:
A business checking account is good for daily expenses. It comes with a debit card, checkwriting privileges, merchant services and other perks to help you manage your money. Online business accounts, like Found, tend to offer other perks, such as more software integrations, invoicing, and automated tools for taxes.
A savings account for businesses is better for storing excess capital. You’ll earn interest on your funds and have a safe place to store your funds.
There are also borderless business accounts, which let you make transactions in multiple currencies. But before opening one, you’ll first want to check if the bank exchanges the currencies you need for your business.
A bank account built for small business
Connect every part of your business to one bank account
If you’re approved for the account, take some time to set it up.
Opening a separate business account can offer many benefits, including:
Having a business bank account can be beneficial for LLCs, sole proprietors, for-profit and nonprofit organizations and even freelancers. Business accounts come with unique perks you won’t get with regular accounts, such as software integrations, invoice tracking and sub accounts for employees.
The number one reason to get a business bank account is personal protection. If your business gets sued, owes debt or owes the government, your personal assets could be at risk if they’re tied up alongside your business. Keeping your business funds separated also makes it easier to track expenses and locate business tax deductions around tax time.
It depends on the bank and your home state. Some banks won’t allow you to open an account if you don’t live in that state. However, plenty of institutions operate nationwide, so you’re not limited to local banks in your area. There are also many online banks that operate across state lines.
It depends on your business structure. For example, if you’re a sole proprietor, you aren’t required to get an EIN, so you wouldn’t need to provide one during a business bank account application. Instead, you’ll provide your Social Security number.
But if your business pays employees, operates as a corporation or a partnership, or is an LLC, you’ll need an EIN to pay taxes, so you’ll need to provide it during your business bank account application.
Top business checking offers we’ve found are from Bluevine, Chase, PNC, Truist, Huntington, AMEX and Bank of America. See requirements here.
Airwallex is a borderless business account with no monthly fee or foreign transaction fees. But as an online option, there are no physical branches.
There isn’t a separate Zelle business account, but there are plenty of accounts compatible with this popular payment service.
Bluevine and Novo are both strong business bank accounts, but Bluevine wins for its bigger perks and more account offerings.
Both fintechs have no-fee business checking, but Mercury offers a few more perks.
Lili and Bluevine both offer free business checking, but Bluevine is better for its interest-bearing accounts and large ATM networks.
Find the best business bank accounts for LLCs with low fees, software integrations and extra perks like ATM reimbursements.
North One Bank offers a well-rounded business account North with no monthly fees and a ton of management tools, but no international wires.
This small business checking account comes with features like early access to payments, automatic savings for taxes and emergencies and pre-filled tax forms.
Novo comes with a suite of app integrations for smooth workflow, free invoicing and payment processing.
