When opening a bank account for your business, there are a few items you’ll want to have on hand to verify your business information and streamline your application process. Not all bank account applications will ask for the same documents, but there are common items that many applications require. In this article, you’ll learn what documents are typically required to open a business bank account, as well as how to get started with opening a business checking account online.
What you need to know
- A business checking account separates your personal and business finances, which helps you prepare taxes, build business credit, and protect yourself from risk.
- All banking providers require a tax ID, personal ID, and proof of registration. Additional documents depend on whether you run a sole proprietorship, LLC/corporation, or partnership.
- Prepare all your documents before applying to avoid delays and unfinished applications.
Why you need a business checking account
On the surface, a business checking account simply makes it easier to separate your personal and business finances. But there are other important benefits for you as an owner—for example, a business checking account allows you to:
- Streamline your taxes. Separating your finances makes it easy to report earnings and track tax deductions.
- Build business credit. Establishing a business bank account (preferably with a credit card) is the easiest way to build business credit, which helps you qualify for loans.
- Protect your owners from risk. If your business is an LLC, LLP, or corporation, separating your finances establishes it as a separate legal entity, protecting your personal accounts from audits and liability.
Everything you need to open a business checking account online
Below, we’ve listed the documents and information you’ll need in order to verify your business when applying for a business bank account. These details are required, in addition to providing information about yourself, such as your SSN and full legal name, which are used to verify your identity.
To help you navigate the process of opening a business bank account as smoothly as possible, we’ve broken down the list of requirements into several categories: things every business needs to apply, and things you’ll need depending on your business type.
What every business needs
| Tax ID: EIN or SSN | Personal ID | Official business information |
|---|---|---|
| If you’re the sole owner, you can use your SSN as your tax ID when opening a bank account. Otherwise, apply for an Employer Identification Number (EIN) with the IRS. | Verify your personal identity with a valid driver’s license or state ID. | Provide an official document showing your business name as registered with your Secretary of State, plus your business address and phone number. |
What you’ll need, depending on your business type
| Sole proprietorship | LLC, LLP, or corporation | General or limited partnership |
|---|---|---|
| If you’re doing business under a different name than your legal name, provide your Certificate of Assumed Name, or “DBA” name. This legally clarifies that you own your business. | Your banking platform will need your legal business name, plus personal information for each owner of more than 25%. LLCs also need a Certificate or Articles of Organization, while corporations need a Certificate or Articles of Incorporation. | Provide a signed partnership agreement outlining your management and ownership shares, plus personal information for all partners. |
What are the different required documents to open a checking account?
Here’s some additional information about the documents mentioned above, which you may need when opening a business checking account online.
EIN, Tax ID, and/or SSN
Your EIN, or Employer Identification Number, is issued by the IRS when you file for a tax ID for your business. For sole proprietors and single-member LLCs, it’s possible that you don’t have an EIN, in which case your SSN can be used as your tax ID when opening a bank account. Keep in mind that if your business has multiple owners, you’ll need the SSN for each business owner when opening your account.
Personal ID
You’ll always be required to verify your personal identity. Be prepared to do this using a driver’s license or other state-issued ID.
Business Validation Document
Your business validation document refers to the official business registration issued by the state where your business is located. This document establishes your business as one recognized by the state. Depending on the industry you’re in, as well as your business location, you may also be required to obtain a business license, which may need to be submitted along with your business registration when opening an account.
Certificate of Assumed Name, or “DBA”
If you own your business but sometimes operate under a different trade name, you’ll need to register it using a Certificate of Assumed Name, often called a “Doing Business As” name. This is common for Sole Proprietorships.
Ownership Agreements
If your business has more than one owner, you’ll need to submit ownership agreements, which you may have already done, depending on your business type. In addition to these agreements, make sure you’re ready to provide the following information for each additional owner: 1) first and last name, 2) date of birth, 3) SSN, 4) mailing address, and 5) percentage of ownership. In unique cases, you may also need to provide a copy of each partner’s driver’s license to verify all of the aforementioned information.
Initial Deposit
In some cases, banks or banking providers require an initial deposit to open an account. Depending on who you choose to bank with, you’ll want to make sure you have the funds ready to meet those requirements. As you’re searching, you’ll find that the best business checking accounts do not require an initial deposit or minimum balance to get started.
How to open a business bank account online
There are a lot of choices out there, but for small businesses, an online business checking account is an excellent option. It allows you to keep track of everything from your phone or computer, which is ideal when your business keeps you busy during regular operating hours. However, some online accounts do charge maintenance fees or require minimum balances.
Today, most banking providers allow you to apply on their website. Compare different business checking accounts for fees, transaction limits, annual percentage yield (APY), accounts payable tools, and the quality of their mobile banking. Prepare all the documentation above before applying, so you can complete the application in one sitting.
Earn more, pay less, and run your business from anywhere with Bluevine Business Checking.
