How to Open a Business Bank Account (And What You’ll Need)
Introduction
If you’re starting or running a business in 2025, opening a dedicated business bank account isn’t just a smart move—it’s often a legal necessity. It helps you keep personal and business finances separate, making accounting cleaner and protecting your personal assets if legal issues arise.
Banks are also tightening requirements due to fraud prevention laws and compliance regulations. That means it’s more important than ever to prepare your documents in advance to avoid delays.
This guide walks you through how to open a business bank account, step-by-step, so you can get it done right the first time.
How to Open a Business Bank Account: Step-by-Step Guide
Step 1: Choose the Right Type of Business Bank Account
Question: Do I need a checking, savings, or merchant account?
Answer: Most small businesses start with a business checking account for daily operations. You may also need:
- Business savings account – to hold tax funds or emergency reserves.
- Merchant account – to accept debit/credit card payments.
📌 Tip: Compare banks for fees, online banking tools, mobile deposits, and integration with your accounting software.
Step 2: Select the Bank or Credit Union
Consider:
- Monthly maintenance fees and ways to waive them.
- Minimum balance requirements.
- Transaction limits.
- Accessibility (branch locations, ATM networks).
- Digital features like mobile check deposit or instant transfers.
💼 Example: If you run a fully online business, a digital-first bank with no monthly fees might be ideal. If you need frequent cash deposits, choose a local branch.
Step 3: Gather Required Documents
Most U.S. banks will ask for:
For All Business Types:
- Government-issued photo ID (driver’s license, passport).
- Employer Identification Number (EIN) from the IRS.
- Business formation documents (e.g., Articles of Organization or Incorporation).
- Business license or permits (if required in your state).
Additional Requirements by Entity Type:
- LLC: Operating Agreement.
- Corporation: Corporate Bylaws and Meeting Minutes authorizing account opening.
- Partnership: Partnership Agreement.
⚠️ Legal Note: If your business operates under a DBA (“Doing Business As”), bring the DBA registration certificate.
Step 4: Open the Account and Fund It
- Visit the bank in person or apply online (some banks require in-person verification).
- Provide your documents and complete the bank’s forms.
- Make your initial deposit (amount varies by bank).
🧠 Clarification: Some online banks may still require a video call or mailed-in document verification for compliance.
Step 5: Set Up Account Tools
Once your account is active:
- Order checks (if needed).
- Enroll in online banking and mobile app access.
- Link your payment processors or accounting software.
- Set up alerts for low balances or large transactions to prevent fraud.
📌 Tip: Keep all business income and expenses flowing through this account to maintain clean records and preserve liability protection.
FAQ
- Can I use my personal account for business?
Technically, yes, but it’s not recommended. It can create tax headaches and risk “piercing the corporate veil” in a lawsuit. - Do I need an EIN if I’m a sole proprietor?
Not always—you can use your Social Security Number—but an EIN is free and helps protect your personal information. - How long does it take to open a business bank account?
If you have all documents, it can be done in under an hour in person or 1–3 business days online.
Conclusion
Opening a business bank account in 2025 is straightforward if you prepare ahead of time. Choose the right bank, gather the necessary documents, and keep your business transactions separate from personal ones. Doing so will not only keep you compliant with the law but will also make your business finances easier to manage year-round.
If you’d like tailored legal guidance on setting up your business entity or preparing the right documents for your bank, you can book a consultation with The Law Spot here.
Last Updated: August 11, 2025