This content is created by AP Buyline in accordance with AP’s editorial guidelines and supervised and edited by AP staff. Our evaluations and opinions are not influenced by our advertising relationships, but we may earn commissions from our partners’ links in this content. Learn more about AP Buyline here.
In a nutshell
Most businesses need a dedicated bank account to manage expenses, regardless of the company's size.
- A business bank account isn’t required, but it can help you stay legally compliant.
- These types of accounts can help you manage business-related expenses, payroll and taxes.
- It takes a few minutes to open a business bank account online.
The benefits of business bank accounts
Business bank accounts offer many different benefits for business owners, including:
- Separation: Keeping your business and personal transactions separate comes in handy at tax time. Whether you file quarterly or annually, taxes can get messy if you have to weed through one bank account to remember which transactions were personal and which were professional.
- Protection: A business bank account comes with personal liability protection. If something happens to your company, your personal finances are protected. This means you won’t lose personal assets — like your home or car — if your business fails, as long as your business structure is set up under a partnership, LLC or corporation (not a sole proprietorship).
- Financing: Having a business bank account shows potential lenders your business is in good standing with creditors. This may help you qualify for a business credit card, line of credit or loan. While lenders may look at your personal credit history to see if you’re responsible with credit, the longer your business has its own accounts, the more those accounts will stand on their own, separate from your personal credit history.
What to look for in a business bank account
The average business bank account offers several benefits, but not all accounts are equally beneficial. When comparing business bank accounts, consider:
- Fees (minimum balance fees, transaction fees, ATM fees, NSF fees and more).
- Bonuses and special offers.
- Interest rates and high yields, if applicable.
- Money transfers (ACH, wires and deposit options).
- Referral program.
- Customer service availability.
- Branch access, if applicable.
Some business owners prefer a brick-and-mortar location to do business, and branch access might be necessary for folks who deal regularly with cash. If you are OK with an online-only account, you can explore banking options that don't have physical branches.
How to gather the right documents and apply
Before you do anything with a bank account, you’ll need a federal Employer Identification Number, or EIN. It’s like a Social Security Number for your business. If you operate as a sole proprietorship, you need your SSN.
For LLCs, corporations and partnerships, you’ll need other business-related documents, including:
- Business formation documents.
- Ownership agreements.
- Business license.
If your business has a physical location, you may need some further details, including the address, phone number, number of employees and the type of business you do.
You should also bring some personal identification, like a driver's license. If you have a partnership, you'll need to bring identification for anyone else listed on the business bank account.
Each bank has its own required documents, so read through the requirements before applying.
Funding your new business bank account
The amount of money you’ll need to open a business bank account varies depending on your account provider. Some let you open your account with as little as $0 while others may require $25, $50, $100 or more. Because each institution has different requirements, see what your new account asks for so you can immediately make your initial deposit.
Top bank accounts for small businesses
Not all banks and credit unions have the same benefits and offers. It’s important to compare options to see which ones are the best for you and your business.
American Express Business Checking
The American Express Business Checking account doesn't charge monthly maintenance fees and lets you earn a 1.30% APY on account balances up to $500,000. There are no fees for incoming domestic wires or international ACH, nonsufficient funds (NSF) or extra debit cards.
This card offers 30,000 membership rewards points if you meet specific qualifications when you open your account. You'll also earn one point for every $2 you spend on eligible purchases with your debit card. Those points can be used for travel, gift cards, statement credits and more.
Axos Basic Business Checking
Earning interest
Axos Basic Business Checking
Earning interest
Axos Basic Business Checking
Fees
$10 (can be waived)
Bonus
Up to $400
Min. deposit
$0
Axos is an online-only bank, but if you deal with cash, you can still access your account from anywhere without worrying about the extra fees. That’s because Axos has unlimited ATM fee reimbursem*nts. There’s no minimum deposit to open your account, no monthly maintenance fees and unlimited free transactions.
Chase Business Complete Banking
New customer bonus
Chase Business Complete Banking
New customer bonus
Chase Business Complete Banking
Fees
$15, can be waived
Bonus
Earn up to $300 with qualifying activities
Min. deposit
$0
While the Chase Business Complete Banking account charges a $15 monthly maintenance fee, you can get it waived if you meet other requirements, like having at least $2,000 in daily ending balance or making $2,000 worth of purchases from your Chase Ink Business Card. Chase has thousands of branches nationwide, so if you need in-person access, this might fit your business.
The AP Buyline roundup
A business bank account might require more details than a personal one. While you may need personal documents, like a driver's license to prove your identity, you might also need your business license, formation documents and ownership agreements. Unless you're a sole proprietor, you should obtain a federal Employer Identification Number (EIN) before setting up a business bank account.
When exploring business bank accounts, consider your needs. For instance, do you need in-person access or round-the-clock customer service? What about low fees and qualifying requirements? Think about who will have access to your account, like other employees and the work you'll do through it. Find one that meets your needs and expectations before applying.
Frequently asked questions (FAQs)
What is required to open a business bank account?
You'll need your Social Security Number if you're a sole proprietorship. If you're a partnership, LLC or corporation, you'll need your federal Employer Identification Number, or EIN. It's like a Social Security Number for your business. Most banks require proof of your business, like your business license, ownership agreements and formation documentation. If you have a partner, you should both bring personal identification when you set up your account.
How much does it cost to open a business bank account?
The minimum deposit amount depends on where you open your business bank account. Some don't have any minimum requirements, while others do. It's important to review requirements before completing an application, so you can make an initial deposit immediately and get your new account working.
Do I need an EIN to open a bank account for an LLC?
Not all limited liability corporations, or LLCs, need an EIN to open a business bank account. You might need an EIN to open your account if you have employees — including yourself.
How long does a business account take to open?
You can open a business bank account within a few minutes. Unless your bank requires extra documentation or has outstanding questions, you should be able to open your account, link external accounts and fund it immediately.
This content is created by AP Buyline in accordance with AP’s editorial guidelines and supervised and edited by AP staff. Our evaluations and opinions are not influenced by our advertising relationships, but we may earn commissions from our partners’ links in this content. Learn more about AP Buyline here.
