How to Open a Business Bank Account

Opening a business bank account is easy. You can even do it online. Find out the types and requirements, and read on for some tips as well.

Small business owners often manage business and personal finances in one checking account.

But that's a big mistake.

It increases your personal liability. Imagine what would happen if you were audited by the IRS. You'll be glad you took 5 minutes now to learn what you need to open a business bank account properly.

We'll cover everything you need to get started. Plus, how to avoid unnecessary fees.

Member FDIC

Business Checking Account - $400 Bonus

Click Here to Get Deal

Expires 3/31/2025

• Earn $400 when you open a new small business checking account and complete qualifying activities.
• Choose between:
  • Truist Simple Business Checking—Perfect if you're just starting out or have low transaction volume.
  • Truist Dynamic Business Checking—With more perks as your balances grow—and a true, local partnership.
• New business checking clients only
• From October 1st, 2024 – March 31st 2025

Terms and Conditions

Offer Information: Open a new Truist Simple Business Checking or Dynamic Business Checking account online, phone, or in a branch from 10/1/2024 through 3/31/2025 and earn $400 by making Qualifying Deposits* of $2,000 or more into your new account within 30 days of account opening.

Enrollment in the promotion is required at the time of account opening using promo code SB24Q4BIZAFL to be eligible for a promotion reward. Refer to the Account Opening & Promotion Enrollment sections below for instructions.

*Qualifying Deposits for new business checking accounts exclude debit card credit transactions and NSF fee refunds. Deposits can be made on a one-time basis or cumulatively over the 30 days.

Offer Eligibility: You must be a new Truist business checking client. To be considered a new business checking client, the business cannot have an existing Truist business checking account or have closed a Truist business checking account within 180 days of the promotion start date (i.e., on or after 4/4/2024), with the same Taxpayer Identification Number (TIN), including but not limited to an Employer Identification Number (EIN). The business account holder must be 18 years or older at time of account opening. The account holder cannot be a non-resident alien. The business account holder must have a valid U.S. TIN. The business's physical address must be located in one of the following states: AL, AR, FL, GA, IN, KY, MD, MS, NC, NJ, OH, PA, SC, TN, TX, VA, WV or DC.

Reward Processing: The reward will be deposited to the new business checking account within 4 weeks after the qualification requirements have been met and verified. The new business checking account must be open and in good standing with a balance of at least $0.01 at the time of Truist verification and until the reward is deposited to receive the reward. Only one newly opened business checking account per client is eligible to participate in this offer. Truist may report the value of any reward received to the IRS, as required by law. Any applicable taxes are the responsibility of the recipient.

Reward Forfeiture: Reward forfeiture will occur if: (1) the business checking account is changed to an account type not included in this offer, (2) the business checking account is closed prior to the reward being deposited, or (3) the new business checking account has a $0.00 or negative available balance at the time of qualification validation.

Other Terms: Minimum opening deposit is $100. A monthly maintenance fee is applicable for Truist Dynamic Business accounts whose combined average relationship ledger balance is less than $5,000; the monthly maintenance fee is waived for accounts with a combined average relationship ledger balance of $5,000 or more. See Truist's Business Deposit Accounts Fee Schedule for additional information.

The offer is non-transferable and may not be combined with any other offers. This offer is subject to change and may be discontinued at any time. Truist reserves the right, in its sole discretion, to disqualify any account if Truist suspects accounts are being opened for the purpose of exploiting this promotional offer. All promotional payouts will be processed no later than 9/30/2025, at which point this promotion and any related disbursements will be considered final, and no further disbursements will be made.

Online Account Opening & Promotion Enrollment Instructions: During the online application process, ensure the promo code SB24Q4BIZAFL is entered into the Promo Code field and accept the offer when presented. Accounts opened online without the Promo Code will not be eligible to participate in the offer.

Branch Account Opening & Promotion Enrollment Instructions: Visit your local Truist branch or call a Small Business representative and ask to open an eligible account and enroll you in the Truist Small Business Checking Affiliate Q4 2024 & Q1 2025 Offer using promo code SB24Q4BIZAFL. Once enrolled in the promotion, clients may receive promotional updates via the email address provided or by calling 800-709-8700.

Truist Bank, Member FDIC. ©2024, Truist Financial Corporation. Truist, Truist Purple and the Truist Logo are service marks of Truist Financial Corporation

Version 2 10172024 SB24Q4BIZAFL

1. Choose the Right Business Account Type

© CreditDonkey

Each type of business banking account serves a different purpose. For example, checking accounts let you write checks to vendors.

Savings accounts let you take advantage of high interest rates. Merchant accounts let you accept debit and credit card sales.

Read on to see which account type would be best for your business.

• Business Checking Account
  With a business checking account, you can write checks under your business name.

  You can use debit cards to withdraw and deposit cash and checks. Or you can transfer funds electronically to different accounts and recipients.

  These services are often essential. So, checking accounts are often a good choice.

• Online Business Bank Accounts
  Not all business checking accounts have the same exact services or requirements. For example, most online checking accounts will not accept cash deposits.

  On the other hand, online business bank accounts tend to offer lower fees. If the restrictions won't hinder your business operations, consider opening an online bank account.

• Free Business Checking Account
  Free business checking accounts are more affordable. They don't charge monthly service fees.

  But "free" business checking accounts may still have certain fees. This includes fees for overdrafts or for too many withdrawals or transfers.

  It's always best to read the fine print. Many online checking accounts are examples.

  Important note about monthly service fees
  While many banks do charge monthly service fees, many will waive the fee if the account holder meets certain conditions. These can include maintaining a minimum balance amount or making regular deposits.
  

• Business Savings Account
  Business savings accounts are designed for funds that do not need to be as easily accessible. Instead, they serve more as safe place to park extra money or reserve cash.

  They often provide higher interest rates. That way, business owners can see better returns on their deposits.

• Merchant Bank Account
  Merchant accounts can be valuable to certain types of businesses. Retailers, for example, can accept credit card and debit card payments through this account.

  But you must also have a business checking account with it. That way, you can accept funds through the merchant account, then, have them transferred to your business checking account after.

  If you need a POS for your business, a merchant account is essential. Especially if you're a restaurant, you'll be able to easily accept credit card payments.

2. Choose Your Bank

© CreditDonkey

Many business owners are tempted to use the same bank from their personal bank accounts.

In some cases, this can offer the advantage of efficiency because all your accounts would be in one place. But for others, having the same bank could have them miss out on certain benefits.

The ideal bank for you depends on how your business operates and what it needs for its financial operations. That may not necessarily be what your personal bank offers.

These are the main factors to consider when choosing a bank for your business:

• Fees
  
• Services offered
  
• Benefits
  
• Balance requirements
  
• Interest

We'll discuss them in detail later.

3. Collect Required Documents

© CreditDonkey

Once you've settled on a bank, it's time to gather the paperwork you'll need to actually establish the account.

You'll be asked for your personal identification. You'll need to present your SSN and any government issued photo ID. You can use your driver's license, for example.

Regarding business identification, each bank will have different requirements, but generally, the documents you'll need depend on the type of business structure you have.

If you're a sole proprietor, you'll need to present your SSN instead of an EIN. The rest of the documents for a limited liability company, partnership, and corporation serve essentially as proof of your business' existence.

Keep in mind that business licenses are typically required regardless of your type of business.

For any document you'll present, the bank will likely ask for an original or certified copy.

Other Potential Documentation
Your business type will determine other requirements. If applicable, banks may also ask for the following:

• Doing-business-as (DBA) certificate
  
• Signed declaration of unincorporated business
  
• Corporate charter or resolution
  
• Operating agreement
  
• 501 (c)

The DBA certificate is required if you're using a different name (from your company's legal name) when advertising or marketing.

On the other hand, non-profit and unincorporated associations need to provide the signed declaration. And corporations need to present the corporate resolution for the bank details.

Operating agreements or by-laws are for LLCs.^[1] And 501 (c) letters are for non-profit organizations. It serves as proof of eligibility from the IRS for tax exemption.^[2]

4. Open Your Account

© CreditDonkey

How to Open a Business Account in Person
Make sure you have physical copies of your documents. You can also ready a check to make a deposit. Then, make an appointment with the bank.

You'll be working with a professional to open the account. The process may take a bit longer than opening an account online. But opening an account in-person means you can address all your concerns and questions with the bank employee.

Banks may require you to open an account in person if you are in a certain industry or area of business. You could be in telemarketing, gambling, government, or precious metals, for example.

How to Open a Business Account Online
When opening a business account online, you can submit your forms digitally. You can also scan the hard copy of your documents.

You won't get the benefit of face-to-face customer service, but the process is often much faster.

5. Make Your First Deposit

© CreditDonkey

You'll make your first deposit to a business bank account similar to a personal bank account. You can deposit through cash, check (e.g., from your personal account), or transfer of funds.

Be aware of any fees your bank may charge for a particular type of deposit. There may be a cash deposit fee, for example. It's best to learn what deposit methods your bank allows. Know whether you can deposit remotely, online, or in person.

You need to also make sure you meet the minimum deposit requirements. You could incur a fee otherwise. Then, that's it! You can now effectively manage your business finances with your new business bank account.

There are 5 main things to consider when choosing a bank to open an account with.

Let this be your criteria when selecting a bank for your business finances:

1. Fees

Banks typically have minimum balance fees, cash deposit fees, ATM fees, wire transfer fees, and transaction fees.

Some of them charge a monthly service fee. Other banks waive the fee if you meet certain conditions.

These fees vary depending on the bank and type of account.

2. Services offered

Business owners can benefit significantly from services like cash flow visibility reports. A personal bank account might not provide such. It's best to find out if the banks you're considering have these tools.

Do they have online or mobile banking? A mobile app would be convenient for monitoring your balance, paying bills, and transferring funds.

Also, think long term and consider if you'll need other financial services like small business loans or lines of credit. You can check if your prospective bank provides them.

3. Benefits

Many banks provide extra benefits. Some provide user-friendly account management online. Others have reliable customer support.

Some banks will have introductory offers. This could be a cash bonus for making an initial deposit of a certain amount. Or it could be due to maintaining a specific balance for a certain period.

Consider also whether you'll have a wide network of branches that can provide in-person services. Or if there are enough convenient ATMs if you need them.

4. Balance Requirements

Some banks have minimum balance requirements. This means you must always have a certain amount of money in your account.

A large enough balance can get the monthly service fees waived. If you have it, a bank's balance requirements should be less of a concern.

However, if your business has a tighter cash flow, it would be wise to research minimum balance fees.

5. Interest

Many business bank accounts provide interest on your business funds. Banks typically offer them on checking accounts that meet the minimum balance requirements.

If building interest is important to you, compare rates from several banks. It can pay to shop around.

It's easy to open a business bank account. But you want to be sure you're opening the right one for your business.

Here are some tips to help you out:

1. Decide on your business banking needs

What type of business bank account do you plan to open? Whether it's a savings or checking account, make sure your preferred bank can offer it.

You can also inquire if they offer certificates of deposits, money market, or business lines of credit.

That way, all your accounts would be accessible through a single bank.

2. Build a relationship with your bank

Before deciding to open the account, you can inquire about the details from your prospective financial institution. You can discuss your business needs with them. They can also guide you through the process.

Not to mention, it could help process your account faster if your banker already knows you. Some may also provide lenient deadlines if not all your documents are readily available.

3. Take note of physical branches available

If you decided on a traditional bank, take note of where their physical branches are. A bank with ATMs available in many places will also be convenient.

Visiting banks in person can help you address issues quickly and personally. It's also easier to have complex financial discussions in person should you need to.

You can also deposit cash, or deposit and cash-in checks when you're near a bank's physical branch.

4. Ready your documents before you apply

To open a business bank account easily (and smoothly), prepare the necessary documents beforehand.

Incomplete requirements can delay the process. Whether you're applying in-person or online, it's best to submit all documents at once.

The Best Business Bank Accounts

The "best" business bank accounts vary from business to business, depending on the services the business needs and its financial situation.

Still, some banks may offer more business-friendly terms than others. Here are some banks to consider when you're determining how to open a business checking account:

Member FDIC

Business Checking Account - $400 Bonus

• Earn $400 when you open a new small business checking account and complete qualifying activities.
• Choose between:
  • Truist Simple Business Checking—Perfect if you're just starting out or have low transaction volume.
  • Truist Dynamic Business Checking—With more perks as your balances grow—and a true, local partnership.
• New business checking clients only
• From October 1st, 2024 – March 31st 2025

Get Deal

Expires 3/31/2025

Terms and Conditions

Offer Information: Open a new Truist Simple Business Checking or Dynamic Business Checking account online, phone, or in a branch from 10/1/2024 through 3/31/2025 and earn $400 by making Qualifying Deposits* of $2,000 or more into your new account within 30 days of account opening.

Enrollment in the promotion is required at the time of account opening using promo code SB24Q4BIZAFL to be eligible for a promotion reward. Refer to the Account Opening & Promotion Enrollment sections below for instructions.

*Qualifying Deposits for new business checking accounts exclude debit card credit transactions and NSF fee refunds. Deposits can be made on a one-time basis or cumulatively over the 30 days.

Offer Eligibility: You must be a new Truist business checking client. To be considered a new business checking client, the business cannot have an existing Truist business checking account or have closed a Truist business checking account within 180 days of the promotion start date (i.e., on or after 4/4/2024), with the same Taxpayer Identification Number (TIN), including but not limited to an Employer Identification Number (EIN). The business account holder must be 18 years or older at time of account opening. The account holder cannot be a non-resident alien. The business account holder must have a valid U.S. TIN. The business's physical address must be located in one of the following states: AL, AR, FL, GA, IN, KY, MD, MS, NC, NJ, OH, PA, SC, TN, TX, VA, WV or DC.

Reward Processing: The reward will be deposited to the new business checking account within 4 weeks after the qualification requirements have been met and verified. The new business checking account must be open and in good standing with a balance of at least $0.01 at the time of Truist verification and until the reward is deposited to receive the reward. Only one newly opened business checking account per client is eligible to participate in this offer. Truist may report the value of any reward received to the IRS, as required by law. Any applicable taxes are the responsibility of the recipient.

Reward Forfeiture: Reward forfeiture will occur if: (1) the business checking account is changed to an account type not included in this offer, (2) the business checking account is closed prior to the reward being deposited, or (3) the new business checking account has a $0.00 or negative available balance at the time of qualification validation.

Other Terms: Minimum opening deposit is $100. A monthly maintenance fee is applicable for Truist Dynamic Business accounts whose combined average relationship ledger balance is less than $5,000; the monthly maintenance fee is waived for accounts with a combined average relationship ledger balance of $5,000 or more. See Truist's Business Deposit Accounts Fee Schedule for additional information.

The offer is non-transferable and may not be combined with any other offers. This offer is subject to change and may be discontinued at any time. Truist reserves the right, in its sole discretion, to disqualify any account if Truist suspects accounts are being opened for the purpose of exploiting this promotional offer. All promotional payouts will be processed no later than 9/30/2025, at which point this promotion and any related disbursements will be considered final, and no further disbursements will be made.

Online Account Opening & Promotion Enrollment Instructions: During the online application process, ensure the promo code SB24Q4BIZAFL is entered into the Promo Code field and accept the offer when presented. Accounts opened online without the Promo Code will not be eligible to participate in the offer.

Branch Account Opening & Promotion Enrollment Instructions: Visit your local Truist branch or call a Small Business representative and ask to open an eligible account and enroll you in the Truist Small Business Checking Affiliate Q4 2024 & Q1 2025 Offer using promo code SB24Q4BIZAFL. Once enrolled in the promotion, clients may receive promotional updates via the email address provided or by calling 800-709-8700.

Truist Bank, Member FDIC. ©2024, Truist Financial Corporation. Truist, Truist Purple and the Truist Logo are service marks of Truist Financial Corporation

Version 2 10172024 SB24Q4BIZAFL

Free Checking Account for Small Business Owners

• Sign up in 3 minutes; no credit check
• No account fees - $0 monthly fee, overdraft fee, foreign transaction fee, or ATM fees at approximately 40,000 locations
• Automatic Savings
• Get paid up to 2 days early

Lili is a financial technology company, not a bank. Banking services provided by Sunrise Banks N.A., Member FDIC

Get Started

Read Review

Chase Business Complete Banking® - $300 Bonus

• Earn $300 when you open a new Chase Business Complete Checking^® account. For new Chase business checking customers with qualifying activities.
• Multiple ways to waive the $15 Monthly Service Fee, including maintaining a minimum daily balance or purchases on your Chase Ink^® Business credit card.
• Full-service business banking. Convenient access to all your business banking services in one place -- lending, checking, credit card and payment solutions.
• Your choice of payment types. Choose from a full range of options for accepting payments and making deposits that include Zelle^®, Online Bill Pay, wire transfers and ACH payments.
• Convenient access to payment processing. Process all major debit and credit cards with QuickAccept^®. It's a built-in feature with your Business Complete Checking account.
• Get support you can rely on. Get access to our customer support team, plus a wide array of solutions that carter to every stage of your business
• Full-featured banking online and on-the-go. Manage your business' finances on your terms with the latest online and mobile banking technology.
• Associate Debit and Employee Deposit Cards available upon request

Get Coupon

Read Review

Expires 1/16/2025

What the Experts Say

As part of our series on small businesses and entrepreneurship, CreditDonkey asked a panel of industry experts to answer readers' most pressing questions. Here's what they said:

Bottom Line

Most business owners open a business bank account for good reason—to keep their personal and company finances separate.

Separate accounts can help you manage your accounting more efficiently. It also makes sure you file your taxes accurately.

Fortunately, with a little planning, learning how to open a business bank account is easy. And you have several choices in business account types and banks to consider.

References