How to Open a Business Bank Account in 5 Easy Steps

Opening a business bank account is a critical step for legitimizing your business and protecting your personal finances. Whether you're launching a startup or running an established company, separating your business and personal finances isn't just good practice—it's essential for legal protection, tax compliance, and professional credibility.

This guide walks you through everything you need to know about how to open a business bank account, from gathering the right documents to choosing the best account. You'll learn about requirements, the step-by-step application process, and solutions for international payments.

Wise is a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is easy to set up 100% online, and has no opening balance requirements.

Learn more about Wise business

How to Open a Business Bank Account: Step-by-Step Guide

The US Small Business Administration recommends you get a company bank account as soon as you need to spend or accept money on behalf of your business.¹ Follow these seven steps to successfully open a business bank account and start managing your business finances professionally.

Step 1: Choose Your Business Structure

Your business structure (sole proprietorship, partnership, LLC, or corporation) determines what documents you'll need and how your business bank account will be set up. If you haven't already registered your business, consult with an attorney or accountant to determine the best structure for your needs.

Step 2: Register Your Business

Register your business with the appropriate state authorities and obtain necessary licenses and permits. Then, apply for your EIN through the IRS website. The EIN application is free and you'll typically receive your number immediately upon completion.

Did you know?
Depending on the bank you choose, you may need to have your EIN — employer identification number — from the IRS before you can get your small business account up and running. If you don’t yet have an EIN, and think you might need one, you can complete a simple test online via the IRS website to check whether it’s time to get your own EIN, and get your application started.²

Step 3: Gather Required Documents

Collect all the documents listed in the requirements section. Having everything ready before you apply will speed up the approval process. Create a checklist to ensure you don't miss anything.

Step 4: Research and Compare Banks

Take time to compare your options. Consider these factors:

• Monthly maintenance fees and transaction fees
• Minimum balance requirements
• Number of free transactions per month
• Online and mobile banking features
• ATM network and access
• Customer service quality and availability
• Additional services like merchant accounts or payroll integration
• International payment capabilities if you work with global clients or suppliers

Consider both traditional banks with physical branches and online banks that often offer lower fees and better digital experiences. Many business owners also explore alternative solutions like Wise for international payment needs, which can complement a traditional business bank account.

Step 5: Apply for Your Business Bank Account

You can typically apply online or visit a branch in person. The application will ask for your business information, ownership details, and the documents you've gathered. Be prepared to answer questions about your business activities and expected transaction volume.

Most banks complete their review within 1-3 business days, though some online banks offer immediate account access.

Step 6: Make Your Initial Deposit

Once approved, you'll need to fund your account with an initial deposit. This amount varies by bank and account type, ranging from no minimum to several hundred dollars.

Step 7: Set Up Business Banking Tools

After your account is active, set up essential tools:

• Online banking access and mobile app
• Business debit card
• Checks (if your business needs them)
• Connect your accounting software (QuickBooks, Xero, etc.)
• Set up any automated payments or deposits

Rea on for more:

Types of Business Bank Accounts Why Do You Need a Business Bank Account? Requirements to Open a Business Bank Account Can a Non-Resident Open a Business Account? Wise Business Account: An Alternative for International Payments Comparing Business Bank Account Options Common Mistakes to Avoid When Opening a Business Bank Account Frequently Asked Questions Final Tips for opening a business bank account

Types of Business Bank Accounts

Understanding the different types of business accounts helps you choose the right fit for your company's needs.

Business Checking Account
The most common type, designed for daily business transactions. Features typically include unlimited transactions, a business debit card, check-writing capabilities, and online banking. Best for: All business types needing day-to-day transaction management.

Business Savings Account
Designed for storing emergency funds or saving toward business goals. These accounts earn interest (rates vary by institution) and may have monthly withdrawal limits. Best for: Businesses with surplus cash they want to grow while maintaining liquidity.

Merchant Services Account
Enables your business to accept credit and debit card payments from customers. Often integrated with payment processors and point-of-sale systems. Best for: Retail stores, e-commerce businesses, restaurants, and service providers.

Why Do You Need a Business Bank Account?

Before diving into the mechanics of opening an account, it's important to understand why having a dedicated business bank account matters for your company's success and protection.

Legal Protection: For LLCs and corporations, keeping business finances separate from personal finances helps maintain the "corporate veil." This legal separation protects your personal assets from business liabilities and lawsuits.

Tax Benefits: A business bank account simplifies record-keeping and makes tax season significantly easier. You'll have clear documentation of business income and expenses, making it simpler to identify legitimate tax deductions and prepare accurate tax returns.

Professionalism: Accepting payments and writing checks from a business account builds credibility with clients, vendors, and partners. It signals that you're running a legitimate, professional operation.

Financial Management: Tracking business cash flow, expenses, and profitability becomes much easier when everything runs through a dedicated business account. You'll have clear visibility into your company's financial health.

Access to Business Services: Many essential business services—including merchant accounts, business credit cards, and business loans—require a business bank account to qualify.

Requirements to Open a Business Bank Account

Understanding what you'll need before you apply can streamline the process and prevent delays. Here's what most banks require when you open a business bank account.

Essential Documents You'll Need

Employer Identification Number (EIN): This is your business's tax ID number, issued by the IRS. Most business structures require an EIN. You can apply for free at IRS.gov.

Business Formation Documents:

• Articles of Incorporation (for corporations)
• Articles of Organization (for LLCs)
• DBA (Doing Business As) certificate (for sole proprietorships operating under a business name)

Ownership Agreement: Your company's operating agreement (for LLCs) or corporate bylaws (for corporations) that outline ownership structure and management.

Business License: State or local business licenses or permits, if applicable to your industry or location.

Personal Identification: Government-issued photo ID (driver's license or passport) for all authorized signers on the account.

Social Security Number: SSN for each business owner and anyone who will have signing authority.

Proof of Business Address: Documentation such as a utility bill, lease agreement, or mortgage statement showing your business's physical address.

Can a Non-Resident Open a Business Account?

Yes, non-residents can open a business bank account in the US, though the process is more challenging and requirements vary significantly between banks.

Typical requirements for non-residents include:

• A valid US business entity (LLC or Corporation registered in the US)
• ITIN (Individual Taxpayer Identification Number) if you don't have a Social Security Number
• Valid passport and secondary form of identification
• US business address (many banks require this)
• In-person visit to a US branch (required by some banks)

The challenge: Many banks are hesitant to open accounts for non-residents due to compliance and anti-money laundering regulations. You may face additional scrutiny or longer approval times.

Alternative solutions: Some online banks and specialized financial services are more flexible with non-resident business owners. Additionally, services like Wise offer business accounts with multiple currencies that can serve international entrepreneurs who need to receive and send payments globally, though these complement rather than replace traditional business bank accounts.

Wise Business Account: An Alternative for International Payments

If your business receives payments from international clients or makes payments overseas, managing multiple currencies can become expensive. This is where Wise can complement your business banking setup.

Wise is a Money Services Business (MSB) provider that specializes in international payments and multi-currency management. While it's not a bank, it offers features that many businesses find valuable alongside their traditional business bank account:

Hold and manage money in 40+ currencies: Keep balances in multiple currencies and convert between them at the mid-market exchange rate with transparent, low fees—typically much less than traditional banks charge for international transfers.

Get local account details: Receive local account details for multiple currencies (USD, EUR, GBP, AUD, and more), making it easier for international clients to pay you without expensive wire transfer fees.

Send international payments easily: Pay invoices in their local currency quickly and cost-effectively.

Business debit card: Access physical and virtual business debit cards to spend in multiple currencies while traveling or making international purchases.

No monthly account fees: Wise doesn't charge monthly maintenance fees for business accounts, and you only pay when you convert currency or send money.

Integration with accounting software: Connect Wise to popular accounting platforms like Xero and QuickBooks for streamlined bookkeeping.

Ideal for: Freelancers and contractors with international clients, e-commerce businesses selling globally, companies with remote teams in different countries, or any business that regularly sends or receives international payments.

For example, if your business receives payments from European clients, you can provide them with EUR account details. They pay you in euros with no international transfer fees on their end, and you can hold those euros in your Wise account or convert them to USD when exchange rates are favorable.

Wise can work alongside your traditional business bank account. Many businesses use a bank for domestic operations and Wise specifically for international payment needs.

Comparing Business Bank Account Options

When evaluating where to open your business account, consider these key factors to find the best fit for your needs.

Factors to Consider:

Fees: Look at monthly maintenance fees, per-transaction fees, wire transfer costs, ATM withdrawal fees, and overdraft charges. Fee structures vary dramatically between institutions.

Minimum Balance Requirements: Some accounts require you to maintain a certain balance to avoid monthly fees. Ensure this aligns with your cash flow expectations.

Transaction Limits: Many accounts include a set number of free transactions per month. Understand the limits and what you'll pay for additional transactions.

ATM Access: If you frequently deposit or withdraw cash, consider the bank's ATM network size and whether you'll face fees for out-of-network ATMs.

Online and Mobile Banking: Evaluate the quality of digital banking tools, as you'll likely use these daily for monitoring balances, making transfers, and managing payments.

Customer Service: Consider availability (24/7 vs. business hours only) and response quality. Read reviews from other business customers.

Additional Features: Look for built-in tools like merchant services, payroll processing, integration with accounting software, and business credit cards.

International Capabilities: If your business operates globally, evaluate costs for international wire transfers, foreign currency accounts, and multi-currency support.

Common Mistakes to Avoid When Opening a Business Bank Account

Learning from others' mistakes can save you time, money, and headaches. Avoid these common pitfalls:

1. Mixing Personal and Business Finances: Even if you're a sole proprietor, keep business and personal finances separate. Mixing them creates accounting nightmares, complicates taxes, and can jeopardize legal protections.

2. Not Reading the Fine Print: Understand all fees, minimum balance requirements, and account terms before signing up. A "free" account might have hidden charges that add up quickly.

3. Choosing Based on Personal Banking Relationship Only: Just because you have a personal account at a bank doesn't mean they offer the best business account for your needs. Shop around and compare.

4. Ignoring Online Options: Don't automatically default to traditional banks. Online banks can offer better fee structures and features for small businesses.

5. Not Planning for Growth: Choose an account that can scale with your business. Consider what you'll need six months or a year from now, not just today.

6. Forgetting About International Needs: If you currently work—or plan to work—with international clients or vendors, factor international payment capabilities into your decision from the start.

Frequently Asked Questions

Q: What is required to open a business bank account?
A: You'll typically need an Employer Identification Number (EIN), business formation documents (Articles of Incorporation or Organization), personal identification for all signers, proof of business address, and your company's operating agreement or bylaws. Specific requirements vary by business type and bank. See the detailed requirements section above for a complete list.

Q: Can I open a business bank account with bad credit?
A: Yes, most business checking accounts don't require a credit check for approval. However, your credit may be reviewed if you apply for additional services like business credit cards, lines of credit, or overdraft protection.

Q: How long does it take to open a business bank account?
A: Most banks complete their review within 1-3 business days. Some online banks offer immediate account access after digital verification, while traditional banks might take slightly longer, especially if you're opening the account in person.

Q: Do I need an EIN to open a business bank account?
A: Most business structures (partnerships, LLCs, corporations) require an EIN. Sole proprietors may be able to use their Social Security Number instead, but getting an EIN is strongly recommended for maintaining clear separation between personal and business finances and for tax purposes.

Q: Can I open a business bank account online?
A: Yes, many banks allow you to complete the entire application process online. You'll still need to provide all required documents, which you can typically upload digitally. Some banks may require an in-person visit for verification, particularly for non-resident business owners.

Q: What's the difference between a business and personal bank account?
A: Business bank accounts are specifically designed for business transactions and offer features like higher transaction limits, merchant services integration, and multiple user access. They're registered under your business name and EIN. Most importantly, they provide legal and tax separation between your personal and business finances, which is crucial for liability protection and accounting.

Final Tips for opening a business bank account

Nearly ready to get started? Here are a few final tips and tricks to make sure everything goes smoothly.

When choosing an account, don’t forget to check the costs of transactions if you exceed those included in your monthly package. As your business grows, the number of transactions will, too Make sure your account is fully operational by transferring out, and depositing a small amount, before you start invoicing using your new business bank account If you’re opening a business account with bad credit, it’s worth talking to a range of banks to see which accounts match your needs. Many banks have small business advisors who can run through your options with you Have the name on your checks match the name your business is legally registered under — not the DBA name if this is different Check out the costs and features of Wise Business, to see if you can get quick and secure payment services for your business, for less

Learn more about Wise business

Opening a business bank account is a straightforward process when you're prepared with the right documents and information. Start by gathering your EIN, business formation documents, and personal identification. Then research your options—comparing traditional banks, online banks, and specialized services based on your specific needs.

Whether you choose a traditional bank for comprehensive services and branch access, an online bank for lower fees and modern features, or complement your setup with solutions like Wise for international payment needs, the key is maintaining clear separation between business and personal finances.

Ready to take the next step? Compare your options, gather your documents, and open your business bank account today. If your business needs international payment capabilities, explore how Wise can help save time and money with multi-currency accounts and cost-effective international transfers.

To help you decide on an account, compare business checking accounts or check out our comparison of the best free business checking accounts if you don't want to pay an upfront fee.

	Editor & Business Expert:
	Panna is an expert in US business finance, covering topics from invoicing to international expansion. She creates guides and reviews to help businesses save time and make informed decisions. You can read more useful business articles on her author profile.

Sources:

1. SBA - Open a business bank account
2. IRS - Do you need an EIN?
   All sources checked December 2025