How to open a business bank account

The U.S. Small Business Administration says to open a business account as soon as you start accepting or spending money as your business, and that you can open one once you have your federal EIN (SBA). Here is the process from start to finish.

1. Decide what you need the account to do

Write down how money comes in and goes out: client payments by ACH or card, cash deposits, payroll, bills, and how much you usually keep in the account. That list tells you which fees matter. A business that deposits cash every week has different needs from a freelancer paid only by bank transfer.

2. Choose a bank or a fintech

Banks hold your deposits directly. Fintechs offer the app and the account experience, and a partner bank provides the banking services. Both can work well. With a fintech, read how the provider describes its partner bank and deposit insurance. Our comparison shows each provider's statement in its own words.

3. Get your documents ready

You will usually need an EIN (or, for some sole proprietors, your Social Security number), your formation documents if you have an LLC or corporation, and ID for the owners. See what you need to open a business bank account for the full list.

4. Apply

Most providers let you apply online. Have digital copies of your documents ready. Some applications are approved quickly and others need extra review, especially for new businesses.

5. Fund the account and set it up

Make the opening deposit, order a debit card, add any authorized users, and turn on alerts. Then connect your accounting or bookkeeping software.

6. Keep business and personal money separate

Run all business income and spending through the new account. The SBA notes that business banking helps keep business funds separate from personal funds (SBA).