Best for high interest
- Up to 2% APY
- $0 monthly service, overdraft or incoming wire fees
- Create up to 5 subaccounts
- 8+ software integrations
- FDIC insured
Not only is a business bank account more professional, but it makes it easier to file your taxes, track your cash flow and get a line of credit. Follow these five steps to open a business bank account.
The first step is to figure out what type of business bank account you need. A business checking account is good for daily expenses. It may come with a debit card, checkwriting privileges, merchant services and other perks to help you manage your money.
You may even want to try a borderless business account, which lets you make transactions in multiple currencies. Before signing up, look for which currencies the bank will exchange to make sure that you can use the account for your business.
A savings account for businesses is better for storing excess capital. You’ll earn a competitive interest rate, but you may pay penalty fees if you need to tap into funds more than six times a month.
Once you’ve narrowed down what type of account you need for your business, it’s time to find a business bank account. Bank accounts vary wildly by institution. Some banks charge hefty monthly fees that you can’t avoid and others don’t charge any fees. You may find accounts that let you get started with as little as $0 while others may require opening deposits of $1,000 or more.
Write down your priorities — whether that’s a bank with a large ATM network, one that accepts cash deposits or one with unlimited transactions — and shop around until you find an account that checks all your boxes.
Best for high interest
Once you’ve found a bank, it’s time to gather your documents. The exact documentation you need depends on your business structure. You’ll need your personal information, including your Social Security number and government-issued photo ID, along with your business formation documents.
The business documents you’ll need depends on your entity type. Here’s what you’ll need to provide based on your company structure:
|Business type||Required documents|
|Limited liability corporation (LLC)|
|Limited partnership (LP) or limited liability partnership (LLC)|
The bank’s website should list your options for opening an account. The most popular ways are online, in person or by phone.
The quickest way to open a business bank account is online. But you may want to visit a local branch if you’d like extra guidance.
If you have a business in the telemarketing, precious metals, gambling or government industry, you may be required to open your account in person.
Once your account is officially open, it’s time to set everything up. You’ll want to:
Every bank is different, but generally you can open a business bank account if you’re:
Opening a business bank account will require information about you and your company.
You’ll need to provide the following information for every individual listed on the account:
This table shows how much money you need to open a business bank account at several major US banks.
|Bank of America||$100|
|TD Bank||$25 to $200|
It could take you less than 30 minutes to submit your application online if you have all your documents handy. The verification process could take a day or two and you’ll typically receive your debit card in the mail seven to 10 business days later.
If you open an account in person, it could take an hour or more to complete your application — and you may have to book an appointment in advance. But you could get your debit card on the spot.
Generally, no. You must open your free business checking account in the same state where you work and at least one LLC member lives.
But there are several banks that operate nationwide, so you’re not limited to local banks in your area. You can look for free business checking accounts at big-name institutions.
Use the comparison table to compare business bank accounts by monthly fee, minimum deposit and ATM network.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Anyone who owns a business should have a business bank account. Some business structures require you to have one. But if yours doesn’t, commingling your personal and business funds can create chaos.
The government could come after your personal assets if you’re sued or owe money to the IRS. And it creates a lot of headache come tax time because it’s harder to separate personal expenses from your business ones. Your accountant may also have a hard time figuring out which business tax deductions you qualify for.
Opening a business bank account may seem intimidating, but it’s actually quite easy. Once you find your bank, check to see if you can apply online, in person or over the phone. Then, gather your documents and apply. As always, compare the best business bank accounts before making a decision.
The Revolut business account offers multiple plans, including a free option, making it well-suited for international businesses.
Data related to the number of business applications lodged in the US each year, along with how many of those may turn into fully fledged businesses.
Mercury offers a modern banking solution with fine-tuned user controls and scalable digital tools.
Find the best business bank accounts for LLCs with low fees, software integrations and extra perks like ATM reimbursements.
Oxygen’s cashback business account is free to open, but that’s about where the perks end.
Small business owners can earn 2% APY with this digital checking account that accepts cash deposits.
This small business checking account comes with features like early access to payments, automatic savings for taxes and emergencies and pre-filled tax forms.
Compare the best business checking accounts available: NBKC, Lili, Found, Novo, Bluevine, Relay, Axos and Mercury.
Novo comes with a suite of app integrations for smooth workflow, free invoicing and payment processing.
A business bank account that works for you could be a way for you to fund your business.
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