A business bank account can add credibility to your business, provide a safe place to deposit your earnings and offer tools for expenses, invoice and tax management. But if you’ve never applied for a business bank account, the process can feel a little overwhelming.
Here are some documents to prepare, what those documents typically look like, information about business credit and other helpful tidbits to know when you’re applying.
Exact requirements vary by the bank, credit union or fintech you’re applying with. The types of documents you need to apply for a business bank account may also depend on your business’s structure, such as sole proprietorship, limited liability company (LLC) or corporation.
But at the end of the day, no matter the business type or structure, you’ll need to verify your identity and your business’s legitimacy to open a business account. Compared to a personal account application, though, business accounts do require more documentation.
Here are some documents that you may need, depending on your business structure:
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The Finder Score analyzes and evenly weighs business accounts against multiple factors, including monthly maintenance fees, opening deposits, overdraft fees, wire transfer fees and transaction limitations. We also award accounts that offer extra perks not normally offered, such as annual percentage yield (APY), without penalizing accounts that aren’t interest-bearing.
Since the exact documents you’ll need to apply for a business account vary depending on how you’ve structured your business, here are some basic guidelines:
Sole proprietorships will likely need:
LLCs should prepare these documents:
Partnerships will need the following documents from each partner:
Corporations will likely have the most documents to prepare:
Banks and credit unions must verify a customer’s identity, known as Know Your Customer (KYC). The institution is required to verify your business’s legitimacy and your identity.
For example, an LLC will have a document called articles of organization, which establishes your LLC at the state level and shows your business is a distinct entity.
Your LLC’s articles of organization prove that you have a legitimate LLC, outlining key details including your business’s purpose, company name and structure. And if you’re operating an LLC, plan on needing to supply a copy of this document when you apply for a business account.
EINs, SSNs and ITINs are all unique tax identification numbers. EINs are just for businesses, while SSNs and ITINs are for individuals. For some business bank accounts, you may need both your EIN and SSN/ITIN for the application.
There are quite a few business documents you should prepare if you’re looking to open a business bank account. Depending on your business structure, you’ll need different documents, but they should be things you already have if you’re a legitimate business.
Need some more guidance? See our small business resources and guides.
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