Opening your first business bank account in the US can feel like a big step, especially if you’re new to the country. Having a dedicated account for your business helps you keep finances organized and makes running your company simpler. When you know what’s needed to open an account, the whole process will be a lot easier and quicker.
At Remitly, we know that starting fresh in the US comes with lots of questions, especially about banking and money. We’re here to help you understand exactly what’s required to open a business bank account. We’ll also give you some tips to choose the best bank account for your particular business.
What is a business bank account?
A business bank account is an account designed specifically for handling your company’s daily financial activities. Unlike your personal account, it includes helpful tools made just for business owners, like higher deposit limits, business-friendly credit cards, and easy ways to keep track of your expenses.
Why does opening a business bank account matter?
One of the best reasons to have a separate business account is to protect your personal finances. Having a business bank account is also more professional and helps you build trust with your customers, as they can pay directly to your business name rather than your personal account.
If you plan to grow, it’s a great way to start building credit history for your business or DBA (“doing business as”) name. Plus, it makes record-keeping easy, which saves you stress and paperwork headaches when tax time rolls around.
Types of business bank accounts available
Most banks in the US offer a few different types of accounts to match your business needs.
- Business checking accounts handle everyday tasks like receiving payments, paying bills, and managing expenses.
- Business savings accounts help you put money aside for future projects or unexpected costs.
- Merchant services accounts let you easily accept credit or debit card payments from customers.
- Multi-currency accounts are useful if your business deals with international clients or vendors, letting you send or receive money in different currencies without costly fees.
- Specialized accounts are for specific businesses like nonprofits or specialized industries.
Benefits of having a business bank account
Opening a business bank account gives you several advantages, especially if you’re new to running a business in the US. It makes your daily operations simpler, and it sets your business up for future growth and financial stability.
Keep your personal finances protected
Having a separate business account helps ensure that your personal expenses don’t get mixed up with your business costs. This clear separation makes it easier to manage your spending and budget accurately, giving you peace of mind and better control of your money.
With a dedicated business account, it’s much simpler to show what’s yours personally and what belongs to the business, which will reduce your stress as a business owner in complicated situations.
Make tax time easier
Tax season can be tricky, especially if you’re still adjusting to the US tax system. Keeping your business transactions in their own account helps you clearly track income and expenses, saving you hours of sorting through paperwork or bank statements when tax time comes around.
Plus, with a clear record of your business finances, you or your accountant can easily prepare taxes, reducing mistakes and possibly helping you qualify for valuable business deductions.
Build your business credit history
A dedicated business bank account helps you start building credit specifically for your company. This is particularly important in the US, as having good business credit can eventually help you get business loans, credit cards, or other types of financing to grow your business.
By regularly using your business account and managing your money responsibly, including paying bills and credit cards on time, you can strengthen your business’s financial reputation. In the long term, this makes it easier to work with lenders, negotiate better interest rates, and expand your operations smoothly.
Essential documents needed
When you’re ready to open your business bank account, you’ll need to have some key documents.
Employer Identification Number (EIN) and alternatives
Most banks will ask you for an Employer Identification Number (EIN). An EIN is a unique tax ID number given to businesses by the Internal Revenue Service (IRS). There are a few numbers that banks will typically accept.
- EIN—needed for most business types like LLCs, partnerships, or corporations
- Social Security Number (SSN)—usually accepted for sole proprietors (single-owner businesses) who don’t have an EIN
- Individual Taxpayer Identification Number (ITIN)—accepted by some banks for international business owners who don’t have an SSN
Always double-check with your bank first to confirm exactly which ID numbers they accept.
Proof of business formation
The bank will need to see official documents that show how your business is legally set up, like Articles of Incorporation for corporations, Articles of Organization for LLCs, or a Partnership Agreement for partnerships.
If your business operates under a different name, you’ll also need to provide a DBA certificate or registration. These documents help the bank clearly identify your business type and ensure everything complies with US regulations.
Personal identification
In addition to your business information, you’ll need to provide personal identification documents for anyone who owns or manages the business account. This usually includes a valid driver’s license, passport, or state-issued ID card, and a Social Security Number. If you don’t have a Social Security Number, some banks accept an ITIN or other identification documents—just ask ahead to be sure.
Business licenses and permits
Depending on your location or type of business, you might need to show licenses or permits that allow you to operate legally. Common licenses and permits include a general business license, sales tax permit, health permit (for restaurants or food businesses), liquor license (for bars or businesses selling alcohol), or a professional license (for businesses such as accounting firms, salons, and contractors).
Steps to open a business bank account
Follow this step-by-step process to open your business bank account in the US.
Gather your documents
Before applying, make sure you have these important documents:
- Employer Identification Number (EIN), or your SSN/ITIN if your bank accepts it
- Proof of business setup, such as Articles of Incorporation, LLC documents, or your DBA (“doing business as”) certificate
- Business licenses or permits that are needed for your type of business
- A government-issued photo ID, like a driver’s license, passport, or state ID card
Some banks might ask for additional documents, especially if your business structure is more complicated (like a partnership or LLC), so always double-check their requirements.
Choose the right account for your business
When you’re picking the best business bank account, consider your everyday needs and what matters most to you. Compare the features banks offer, like business credit cards, multi-currency accounts, or merchant services if you need to accept credit card payments.
Complete the application process
- Apply online or in person: Many banks allow you to start the application process directly on their website, but some will require you to visit a local branch.
- Submit your documents: Provide your business documents and personal identification, either by uploading them online or showing them at the branch.
- Make an initial deposit: Most banks require an initial deposit, which you can usually make electronically or in person.
- Wait for approval: The bank will check your details and paperwork, confirm everything is correct, and then finalize your new account.
- Start using your account: After approval, you can order checks, get your business debit or credit card, and begin managing your day-to-day finances easily.
Tips for choosing the best business bank account
A good business bank account doesn’t just store your money, it also helps you manage your finances and ensure everything runs smoothly. Think about your business routine. How many transactions do you expect each month? Do you need special payment services? These are important considerations when choosing the right account for your needs.
Compare account features and benefits
It’s always worth checking out several banks before making your decision. Some banks are especially welcoming to small businesses, offering perks like accounts with no monthly fees, easy access to loans, or higher limits on deposits and transactions.
Look for banks that offer useful extras, like cashback or reward programs linked to business credit cards. These benefits can add up quickly, especially if your business regularly makes larger purchases or involves frequent travel.
Make sure online banking is simple and reliable
Being able to handle your banking online or through a mobile app is very useful, especially if you’re busy or don’t live close to a branch. Look for online tools like remote check deposits, easy invoicing, bill payments, and fast online transfers to save yourself time and hassle.
It’s also helpful if the bank offers solid customer support, ideally 24/7, so you can quickly solve any issues even outside of business hours. Another tip is to check what kind of fraud protection services the bank provides to keep your business safe from online scams or unauthorized transactions.
Pay attention to fees and balance requirements
Fees can vary a lot from bank to bank, so pay close attention. Some banks charge monthly fees unless you maintain a certain balance, while others may charge for transactions, ACH transfers, or wire transfers.
Selecting an account that aligns with your cash flow habits can help you avoid unnecessary charges and save money over time. Also, check if the bank offers ways to waive fees, such as keeping a certain minimum balance or having regular direct deposits.
What newcomers should know about business bank accounts
If you’re new to running a business in the US, understanding how business bank accounts work can help you avoid confusion and make your setup process easier. Here are a few things to keep in mind.
You don’t need an LLC to open an account
An LLC (Limited Liability Company) is a popular choice, but it isn’t the only type of business structure accepted by banks. Sole proprietors, general partnerships, and other business structures can also open business accounts, as long as they provide the right paperwork and identification.
Approval is usually simple if you’re prepared
Most banks make the approval process straightforward, especially if you have all your documents ready ahead of time. Having your EIN or tax number, business formation paperwork, licenses, and identification ready can speed things up significantly, making it easier for you to get started quickly.
Opening an account can help you accept more payment options
Having a business bank account means you can more easily accept credit cards, debit cards, checks, and online payments directly into your business. This flexibility makes transactions easier for both you and your customers, helping you build a stronger business right from the start.
FAQs
What documents do I need to open a business bank account?
You’ll usually need paperwork showing your business setup (like LLC or corporation documents), a government-issued ID (such as a driver’s license or passport), and your EIN or tax ID number. If you have any business licenses for your type of business, bring those along too.
What types of business licenses might I need to open my account?
Depending on your business, you may need licenses such as a sales tax permit, health department permit, liquor license, or professional licenses for fields like construction or cosmetology. Check your local city or state requirements to see exactly what’s necessary.
Is a multi-currency account necessary if my business deals internationally?
A multi-currency account isn’t required, but it can make international transactions easier and cheaper by letting you manage multiple currencies without high conversion fees. Consider this option if you frequently receive payments from other countries.
What should I do if I’m not sure which bank to choose for my business?
Start by thinking about what’s important for your business, such as fees, online banking features, or branch locations. Comparing options online or speaking directly with different banks can help you make the best decision.