The requirements to open a business bank account may vary depending on the type of business you have, the type of bank account you want to open and the bank you use.
Select a Suitable Bench
First, choose a bank that suits your business needs. Banks in the United States offer different services, fees and benefits. Some banks are better suited for small businesses, while others are better for large or international companies.
Obtain an Employer Identification Number (EIN)
The EIN (Employer Identification Number) is equivalent to a tax identification number and is required to open a business bank account. You can apply for this number free of charge through the IRS website.
Submits Documentation
You will need to submit several documents, including, but not limited to:
- Company training documents.
- Operating agreement or bylaws of the company.
- EIN.
- Form of identification, such as passport or driver’s license.
- Proof of address.
Initial Deposit
Some banks may require an initial deposit to open the account. Be sure to verify the minimum amount required before opening the account.
Compliance Verification
Due to U.S. anti-money laundering regulations, banks are required to perform a “Know Your Customer” process in which you must provide additional information about your company and its background.
Banking Solutions
Explore the different banking solutions available, such as international transfers, commercial credit cards, and online banking services, and choose the ones that best suit your business needs.
Maintain Good Credit History
Once your account is open, it is crucial to maintain a good credit history to access additional credit and financial services. Pay your debts on time and maintain a healthy balance in your account.
Additional Considerations
If you are a foreigner and want to open a commercial bank account in the United States, some banks may request additional information and documentation.
Consult with a legal or tax advisor regarding U.S. tax obligations, as mishandling can lead to fines and penalties.
Always remember to get proper advice, and consider that requirements may vary depending on the state and the specific bank. Good luck with your business venture!
How Requirements Vary for Different Types of Companies
Below is a basic overview of what you will need to open a business bank account depending on your type of institution:
Personal Companies
- Social Security Number (suitable for personal business only) or EIN
- Personal identification
- Commercial license with company name and owner’s name.
- Name under which company is doing business /DBA
- Monthly credit card income (for commercial accounts)
Companies
- EIN
- Personal identification
- Business license
- Name under which company is doing business /DBA
- Partnership agreement with the name of the company and its partners.
- Organizational document filed with the state (for limited partnerships or limited liability companies)
- Monthly credit card income (for commercial accounts)
Limited Liability Companies (LLC)
- EIN
- Personal identification
- Business license
- Name under which company is doing business /DBA
- LLC operating agreement with the name of the company and its partners.
- Organizational items
- Monthly credit card income (for commercial accounts)
Corporations
- EIN
- Personal identification
- Business license
- Name under which company is doing business /DBA
- Corporate bylaws
- Articles of incorporation
- Monthly credit card income (for commercial accounts)
- Choosing a business bank account
Frequently Asked Questions
1. How much money do I need to open a business bank account?
Minimum deposit policies will vary by bank. Some accounts require between $50 and $100, while others have no minimum deposit requirement.
2. Can I open a business bank account online?
Yes, several banks have digitized the application process to allow you to open a business bank account online. Please note that you will still need to provide all the necessary documents and identification as you would if you were applying in person.
Can I open a business bank account without an EIN?
Sole proprietors without an EIN can register for a business bank account using their social security number. However, for other types of entities, an EIN is usually required.
Can I open a commercial bank account in a Credit Union?
Yes, you can open a business account at a credit union in the United States. Like banks, credit unions offer business accounts with similar services. Do your research and choose a credit union that fits your business needs. Some credit unions specialize in certain types of industries or communities, so look for one that aligns with your business goals.
Opening a business bank account can require a lot of paperwork, but you should already have most of the documents in hand when you set up your business. Once you open your business bank account, you can concentrate on generating sales and filling that account with cash.
