Opening a business bank account is an important step in the timeline of any new company. Without a business bank account you could have trouble establishing commercial credit. You might also face challenges when you try to qualify for financing or keep the clear accounting records you’ll need when it’s time to file your business tax return.
There are clear advantages to opening a business bank account as well. For example, managing company cash flow is generally a lot easier when you keep your business and personal finances separate. If your business is ready to start spending money or receiving money from customers, the best time to open a business bank account is now.
What You Need to Get Started
Ready to open a business bank account for your business? Below you’ll find three types of information you need to get started.
1) Know your business’ identity.
Whether you visit a local bank branch or open a business checking account online, you’ll need to be prepared with some basic identifying information about your business. This may include:
- The Name of Your Business — You should provide the bank with the legal name of your business, as it appears on any documents filed with the state or Internal Revenue Service (IRS).
- Your Employer Identification Number (EIN) — If your business is an LLC or corporation, your bank will most likely request your EIN number to open a bank account for your company. Most banks require this information to make sure your business is legitimate.
- Your Business Address — Ideally, this should be the same address you used for licensing or official business filings (LLC or incorporation).
- Other Contact Information — A bank may also request other contact information for your business when you set up a new account, such as your company phone number, website, and/or email address.
Can’t get enough?
We’ve got tons of FREE business tools and resources right here.
2) Be prepared to share personal details.
In addition to sharing information about your business, you’ll also need to let the bank know a few personal details about you, the business owner. These personal details may include:
- Your Social Security Number — If your business is set up as a sole proprietorship, you should be prepared to hand over your personal Social Security number (and perhaps even a copy of your Social Security card) when you open a new business bank account.
- A Copy of Your Driver’s License — Many banks will want to make a copy of your valid driver’s license when you open a new business bank account.
- Additional Proof of Identification — You might need to provide additional proof of identification, such as a passport or alternate photo ID.
3) Have your business formation documents.
Finally, you should be prepared to bring or upload copies of…