As a small business owner, it's important to keep your business and personal banking separate so you can monitor the profitability of your business and avoid mixing transactions. With a business bank account, you can help protect yourself and your business. Before opening one, be sure you understand what you need in order to start making deposits and getting the most from your account. Show
In this article, you’ll learn what you need in order to open a business bank account and why having one is crucial for your business. How do you open a business bank account?Opening a business checking or savings account can be simple and straightforward when you know what information you need to get started. 1. EIN numberThe first thing you’ll need is an employer identification number — also called an EIN, FEIN or tax identification number. The IRS issues and manages your EIN. If you haven't filed for a tax ID number, you may still be able to open a business bank account with your personal Social Security number. Depending on your type of business, you may not need to apply for an EIN. A sole proprietorship (PDF) with no employees typically doesn’t require one. A business formed as a limited liability company (LLC) may need an EIN, depending on whether it has employees. If you’re still unsure whether your business needs an EIN, refer to this checklist from IRS.gov and seek professional advice. 2. Personal and business identificationOpening a business bank account requires proof of identification for both you and your business. Examples include your state-issued driver’s license or passport, your business license or your partnership agreements. Your business also may need to provide additional materials.
Have your business’s paperwork ready when you go to open a bank account. If you have filed documents or licenses on the state level, you might need to bring them as well. When speaking with a business banker, make sure to ask which documents the financial institution requires to open a business checking account. 3. Initial depositOnce you’ve established your personal and business identities, you may need to make an initial deposit to open your account. Initial deposits and minimum balances vary by bank and account type. Select a business bank account with an initial deposit amount and minimum daily balance that are manageable for your business. Work with your local business banker to identify the amount of your initial deposit. Also, ask about any limited-time offers or deals; many banks waive initial deposits or contribute a monetary offer to qualifying new accounts. The benefits of business bank accountsOpening a business banking account for your company has many benefits, both personally and professionally.
The process of opening a bank accountOnce you have all the documents you need, opening a business bank account can be straightforward. When you’re ready to open your business bank account, you can open an account online or stop at a branch near you. It might be helpful to meet with a business banker to determine what kind of account you need: business checking, savings or a merchant service account. For Informational/Educational Purposes Only: The views expressed in this article may differ from other employees and departments of JPMorgan Chase & Co. Views and strategies described may not be appropriate for everyone, and are not intended as specific advice/recommendation for any individual. You should carefully consider your needs and objectives before making any decisions, and consult the appropriate professional(s). Outlooks and past performance are not guarantees of future results. JPMorgan Chase Bank, N.A. Member FDIC. Equal Opportunity Lender, ©2022 JPMorgan Chase & Co. How do I open a business account with Bank of America?You may also use Zelle to send or receive money right from the Bank of America® Mobile app or Online Banking with no fees.. Choose your business checking account setting and apply online.. Call 866.283.4075.. Visit a financial center.. What documents are required to open a business bank account in USA?Get documents you need to open a business bank account. Employer Identification Number (EIN) (or a Social Security number, if you're a sole proprietorship). Your business's formation documents.. Ownership agreements.. Business license.. What is necessary to open a business account?Opening a business bank account requires proof of identification for both you and your business. Examples include your state-issued driver's license or passport, your business license or your partnership agreements. Your business also may need to provide additional materials.
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