Opening a business bank account is an important step to formally separate your personal and business expenses. A business bank account also offers unique benefits to small business owners, including higher transaction limits and the ability to build credit and make payments in the business’s name. Read on to learn more about business bank accounts, including what you need to open one.
What Documents Do I Need To Open a Small Business Bank Account?
While business financial institutions will vary, they generally require many of the same documents and information to open a business bank account. Requirements may also vary based on your specific business or the type of business bank account. Some of the common documents needed to open a new business bank account include:
- Employer Identification Number or Social Security number
- Business license
- Articles of Incorporation, partnership agreements and/or formation documents, where applicable
- DBA certificate, if operating with a DBA name
- Personal identification, such as a passport, driver’s license and/or state ID of business owner(s)
Do I Need to Deposit Money To Open a Small Business Bank Account?
You may also be required to make an initial deposit in order to open a business bank account. The minimum deposit amount varies by bank, though you may be able to open a business bank account without a deposit at select financial institutions.
Why Do Banks Require Personal Information To Open a Business Bank Account?
Financial institutions are required to collect certain business and personal information of any owner(s) in order to open a business bank account, depending on the specific organizational structure. Additionally, banks need to verify information in order to make sure you’re legally able to make decisions on behalf of the business.
Where Can I Open a Small Business Bank Account?
A wide variety of financial institutions offer business bank accounts, including traditional brick-and-mortar business banks and credit unions, as well as online-only business banks. In order to find the best business bank account for your needs, it’s a good idea to search online for a financial institution that offers helpful perks and benefits your organization will actually use.