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Bluevine Business Check
Checklist: What you need to open a business bank account
personal information |
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☐ Government-issued photo ID (some banks may require two). ☐ Home address. ☐ Personal phone number. ☐ Personal email. ☐ Date of birth. ☐ Social Security Number. |
business information |
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☐ Employer identification number (if you have one). ☐ Company name. ☐ Trade name or dba name (if applicable). ☐ Company address and phone number. ☐ Type of business entity (sole proprietorship, partnership, LLC, or corporation). ☐ Date the business was established. ☐ The industry and type of business you operate in. |
business documents |
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☐ Sole proprietorship: Business name registration certificate, business license. ☐ LLC: Articles of Incorporation, LLC Operating Agreement, and Business License. ☐ Partnership: partnership agreement, business name registration certificate, business license, state certificate of partnership. ☐ Corporation: Articles of incorporation, company articles of incorporation, business license. |
Requirements for opening a business bank account
Specific business bank account requirements vary by bank, but most financial institutions require a combination of the following:
personal information
Business owners typically need to include personal information and identification, such as:
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Government-issued photo ID. Usually a driver's license or passport. Some banks may require two types of ID.
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home address. To apply for most business accounts, you'll need a U.S. address. Banks typically require a physical address rather than a post office box.
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Personal email address and mobile phone number. Financial institutions use this information for two-factor authentication. Some online business checking accounts are mobile-only and require a mobile phone number to apply for the account.
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Date of birth and social security number. Banks use this information to verify your identity as required by law.
🤓 Otaku Tips
Businesses with multiple owners typically need to include personal information and identification for all owners with 25% or more ownership in the business.
Business content
Most business account applications request basic business information, such as:
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Trade name and name Or if you have a name that says “doing business as” then you are doing business by that name. Do you have an official company name? You can use your own name.
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Company address and phone number. If you don't have an office or store, you can use your home address.
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Business entity type. Sole Proprietorship, Partnership, Corporation, or LLC.
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Date the business was established. If your business is registered with the state, use that date. Otherwise, use the company's founding date.
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The industry and type of business you operate in. Certain types of businesses, such as gambling, cannabis, and adult entertainment companies, are not allowed to open business accounts with most banks.
business documents
The documents you need to open a business bank account vary depending on how you set up your business. Here are some common requirements for different entity types:
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Sole proprietorship. Business name registration certificate, business license.
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partnership. Partnership agreement, business name registration certificate, business license, state certificate of partnership.
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LLC. Articles of organization, LLC operating agreement, and business license.
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Corporation. Articles of incorporation, company regulations, business license.
Why open a business bank account?
Business bank accounts serve many functions beyond simple cash flow. Advantages of business accounts include separating and protecting your assets and making it easier to manage your bills and tax deductions.
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Streamline your bookkeeping: Managing all your company's income and expenses in a dedicated business account makes it easier to track unpaid invoices, create financial statements, and apply for business loans and grants.
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Simplify your tax preparation: A business bank account also makes it easier to file your taxes. There is no need to differentiate between business and personal spending. It's already been done. Many business checking accounts also integrate with popular business accounting software, making it easy to categorize expenses and identify deductions. Some business checking accounts for freelancers have built-in tax planning tools to help estimate and file self-employment taxes.
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Protection of personal assets: If you are an LLC, partnership, or corporation, the legal structure of your business may protect your personal assets in the event of a lawsuit. However, mixing business and personal assets can put that protection at risk. Using a business bank account for company transactions helps maintain a legal distinction between you and your business.
Things to note when opening a corporate bank account
Focus on features and services that align with the way you do business. Consider the following:
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Fee. A free business checking account is ideal. If you're considering an account with a monthly fee, you'll typically want to calculate whether you can avoid the balance requirement. Also check account fees such as ATM usage, wire transfers, and overdrafts.
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Transaction limits. Brick-and-mortar banks typically have monthly limits on the number of transactions you can perform per month without paying fees. All business bank accounts may have limits on cash deposits and withdrawals, mobile deposits, and other types of transactions. Read the details to make sure your account limits won't hurt your business.
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Achievable perks. Scrutinize the fancy perks that corporate banks sell to see if you can actually benefit from them. Unless you need a minimum balance of $1 million to earn interest, a business bank account with a very high annual percentage yield (APY) is great. Similarly, banks such as Grasshopper Bank and LendingClub offer cash back on all debit card purchases, but some banks only offer cash back on purchases at select merchants. We provide back.
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Access to branches. Many corporate banks are online-only, so you don't have to visit a branch. If you prefer to speak directly to a banker, look for a brick-and-mortar bank with many branches and ATMs in your area.
