Once you’ve decided on the type of account you need and found the best banks for small business, it’s time to take action. It’s a common question when you start a new business or realize that your business has expanded beyond what your personal accounts can handle. Get dedicated business accounts, debit cards, and automated financial management tools that integrate seamlessly with your bookkeeping operations Several large banks have pitched us to move our business over, but we love Brex because we get amazing service, high yields, and no hidden fees. Pangea co-founder Adam Alpert consolidated the talent marketplace’s checking and money market accounts into one Brex business account — and hasn’t looked back. Brex has partnered with Stripe Atlas to simplify the banking process even further, allowing new businesses to apply for a Brex account at the moment of incorporation.
Gather your required documentation
In this guide, we’ll explore the relationship between EINs and business banking, including when you need one, how to obtain it, and what it means for your banking options. Some banks have no requirements when it comes to the amount of money that needs to be deposited when you open an account. If you’re in a rush, make sure you apply to a financial institution that uses digital verification, meaning passports and other documents can be checked securely online. Once everything is finalised, the bank will post a debit card and PIN code to your address — and you’ll receive login details for online banking. Beyond preventing personal and business finances from becoming commingled, opening a dedicated account will look more professional in the eyes of your customers. If you’ve set up a limited company with Companies House, it’s a legal requirement for you to establish a dedicated bank account.
What Do I Need to Open a Business Bank Account (Checklist)
Sole proprietors should gather their EIN (or Social Security Number), business license, and DBA certificate if using a trade name. By establishing this separation early, you’re setting your business up for sustainable growth and professional credibility in your industry. Meeting these requirements from the start helps avoid legal complications and maintains your business’s good standing with regulatory authorities. Some prefer building a relationship with their local bank, while others value the speed and convenience of platforms like Brex that can get you up and running in minutes. The days of spending hours in a physical bank branch are over. You should seek the advice of a competent attorney or accountant licensed to practice in your jurisdiction for advice on your particular situation.
Step 3: Gather Required Documents
Atlas will review your application and file your formation documents in Delaware within one business day. You’ll submit the required documents and be given onboarding instructions from the financial institution. At this stage, try narrowing down your options to three to five banks that check all of your boxes. Rates on variable rate accounts could change after account opening.
Step 4: Complete the verification process
For the most current information about packages and benefits available, contact your banker. Deposit products are offered by U.S. DBA names differ from the owner’s or legal business’s names and are often filed with a government authority. Proof of legal name if using a doing business as (DBA) name. Banc of America Securities Limited is regulated for the conduct of investment business in the United Kingdom by the Securities and Futures Authority Limited. Client agrees to abide by applicable export control laws and not to transfer, by electronic transmission or otherwise, any content on the Sites subject to restrictions under such laws to a national destination prohibited under such laws, without first obtaining, and then complying with, any requisites government authorization.
Explore Wealth Management
- You can lose your limited liability protection if you start mixing business income and expenses into your personal finances.
- This separation makes tax season significantly more manageable, as you won’t need to sift through personal purchases to identify business expenses.
- They bring along their business documents, including their business license and Employer Identification Number (EIN).
- It’s an account from which you’ll conduct almost every other financial function of your business, from paying vendors to running payroll.
- You acknowledge that you have the appropriate technological equipment to use the Sites and to receive email via the Internet and understand that your use of the Internet may incur certain operational costs such as monthly fees for a service provider.
CredibilityA professional business uses professional checks. Keeping finances separated offers all business owners more protection, including sole proprietors. This information is also helpful when preparing your monthly financial statements as well, or any time, really. Purchase protectionYour customers’ information is secured through the bank’s purchase protection.
- The website is not owned by Bank of America, Bank of America® or their affiliates and is subject to separate terms and privacy policies.
- But you may be wondering—is that all you need to open a business bank account?
- Confirm the minimum amount with your bank before proceeding.
Banking
You’ll have a clear picture of your business’s financial health without personal spending muddying the waters. This separation makes tax season significantly more manageable, as you won’t need to sift through personal purchases to identify business expenses. Let’s get started with the simple steps to establish your business banking foundation.
Submit Your Application
Atlas offers multiple legal templates for contracts and hiring and can also help you open a what do i need to open a business bank account bank account and start accepting payments even before the IRS assigns your tax ID. Before you can start putting together a list of banks that might be a good fit, it’s helpful to decide which types of accounts you’re interested in opening. Beyond the basics, you might want to open additional accounts with your bank, like a business savings, money market, or retirement account.
The application to open a bank account is free, and some accounts can be opened with $0. You should log into your bank accounts at home or in another trusted private area to avoid using public Wi-Fi networks. When you link bank accounts, you provide information about one of your accounts to another account, allowing them to facilitate electronic transactions. The exact information and documents you’ll need to open a bank account differ based on the bank and account you choose. Choose the right bank, gather the necessary documents, and keep your business transactions separate from personal ones.
Quite simply, keeping your business account separate from your personal bank account will protect your personal assets and legitimize your business. We’ll give you the skinny on the benefits and the drawbacks of a business bank account, and then we’ll answer some common questions. Below, we’ll explain why you do (or don’t) need a business bank account. Opening a business bank account is a crucial step in managing your company’s finances efficiently.
Your purchase of products or services through one of those other sites is subject to agreements and/or the terms and conditions in effect between Client and the providers of products and services at those other sites. Links to non-Bank of America sites do not imply any endorsement of or responsibility for the opinions, ideas, products, information or services offered at such sites, or any representation regarding the content at such sites. Bank of America is not responsible for and does not endorse, guarantee or monitor content, availability, viewpoints, products or services that are offered or expressed on other websites. Applicants authorize Bank of America to obtain credit report, other financial report, or account information to verify application. These reports provide a snapshot of your banking history and include instances of unfavorable activity like unpaid fees, repeated overdrafts and suspected fraud. Banks don’t usually conduct credit checks when you apply for a checking or savings account.
Join thousands of startups who have simplified their financial operations with our modern banking platform. Our platform integrates startup banking, corporate cards, expense management, and accounting automation software in one seamless interface. Understanding the documentation requirements, application processes, and potential challenges helps business owners make informed decisions about their banking needs. Whether you’re just starting out or already generating revenue, Brex’s modern banking platform is designed to grow with your business. Our startup-friendly approval process typically enables approved applicants to begin banking within a few business days, even without extensive business history.
Most banks charge a monthly maintenance fee, typically ranging from $10 to $50, though this can often be waived if you maintain a minimum balance or meet certain transaction requirements. Brex’s banking product is very competitive on its own, but not requiring a minimum balance to earn yield was incredibly appealing.” Pangea, a marketplace for contract-to-hire marketing and design talent, uses Brex for cards, expense management, and banking. Once approved, you’ll get immediate access to your Brex account online.
These specialized services streamline the acceptance and processing of these payments. Do you have employees who need to make purchases or withdraw cash on behalf of the business? Also look for features like mobile check deposit, account alerts, and the ability to integrate with your accounting software. You’ll find it easier to track expenses and share financial management and spending privileges. Refer to the checklist above to gather all necessary documents. You will likely need to provide a lease agreement or utility bills to confirm your business’s physical location and mailing address.
Once you’ve filed the appropriate legal documents to make your business official, you should open a business bank account as soon as possible. If your business is an official entity or you’ve begun accepting payments for your goods or services, you likely need a business bank account. Like individuals, businesses can open a variety of bank accounts, including checking and savings accounts.
