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Open a Business Bank Account

Published: October 2, 2019

Open a Business Bank Account

Open a business account when you're ready to start accepting or spending money as your business. A business bank account helps you stay legally compliant and protected. It also provides benefits to your customers and employees.

Benefits of business bank accounts

As soon as you start accepting or spending money as your business, you should open a business bank account. Common business accounts include a checking account, savings account, credit card account, and a merchant services account. Merchant services accounts allow you to accept credit and debit card transactions from your customers.

You can open a business bank account once you've gotten your federal EIN. 

Most business bank accounts offer perks that don't come with a standard personal bank account. 

  • Protection. Business banking offers limited personal liability protection by keeping your business funds separate from your personal funds. Merchant services also offer purchase protection for your customers and ensures that their personal information is secure. 
  • Professionalism. Customers will be able to pay you with credit cards and make checks out to your business instead of directly to you. Plus, you'll be able to authorize employees to handle day-to-day banking tasks on behalf of the business.
  • Preparedness. Business banking usually comes with the option for a line of credit for the company. This can be used in the event of an emergency, or if your business needs new equipment.
  • Purchasing power. Credit card accounts can help your business make large startup purchases and help establish a credit history for your business.  

Find an account with low fees and good benefits

Some business owners open a business account at the same bank they use for their personal accounts. Rates, fees, and options vary from bank to bank, so you should shop around to make sure you find the lowest fees and the best benefits.

Here are things to consider when you're opening a business checking or savings account:

  • Introductory offers
  • Interest rates for savings and checking
  • Interest rates for lines of credit
  • Transaction fees
  • Early termination fees
  • Minimum account balance fees

Learn more about MBS Business Checking from USSFCU. 

Get documents you need to open a business bank account

Opening a business bank account is easy once you've picked your bank. Simply go online or to a local branch to begin the process. Here are some of the most common documents banks ask for when you open a business bank account. Some banks may ask for more.

This artiucle was originally published by the U.S. Small Business Administration.

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