Updated on Wednesday, December 2, 2020
Similar to personal checking accounts, you can easily open a business checking account online online, often in a matter of minutes. However, you will need the correct documentation â€” ranging from your businessâ€™s formation papers to your employer identification number â€” in order to do so.
Hereâ€™s what you need to know about opening a business checking account online.
At many financial institutions, the process of opening a business checking account online is very similar to the process of opening a personal checking account online. You can expect to take the following steps:
While the exact requirements differ from bank to bank, typically you will need the following information and documentation in order to open a business checking account online, according to the Small Business Administration (SBA):
Many banks will require you to provide your Employer Identification number (EIN) when applying for a small business bank account. An EIN, which is also known as a Federal Tax Identification Number, is used to identify business entities. You can apply for an EIN for free online with the IRS. If youâ€™re a sole proprietorship, the bank will likely just ask for your Social Security number instead.
Your bank may require you to provide your businessâ€™s formation documents, which could include documents such as the date your business was formed, the country and state in which the business was legally formed, where it operates, its legal name, its â€śdoing business asâ€ť (DBA) name, the personal information of everyone on the application and the personal information of those who own 25% or more of the business.
Additionally, your bank may require you to provide your businessâ€™s ownership agreement documentation upon applying for a checking account. Ownership agreements are typically viewed as the governing document on how your business operates, how itâ€™s owned and how itâ€™s organized.
Another key piece of documentation your bank will likely require you to present is your business license. This document verifies that you are legally permitted to conduct business in a certain region. Depending on your business, you may be required to have a combination of licenses and permits from both federal and state agencies. Be sure to ask ahead of time what you will be required to present before applying for a business checking account.
In addition to these documents, your bank will also require you to provide the personal information you should typically provide when opening a personal bank account â€” such as your full name and government-issued ID to verify your identity. Keep in mind that if your business is a nonprofit or a C corp, you may also need to provide additional documentation, such as your 501(c) letter from the IRS, or articles of incorporation and your corporate charters.
There are several benefits associated with having a business checking account that is separate from your personal checking account. Those benefits include:
When looking for a business checking account, you should prioritize:
Below, weâ€™ve compiled our top five best business checking accounts, based on data from DepositAccounts, a database of offerings at more than 17,100 banks and credit unions.
To make the cut, the account had to have minimal fees, a minimum of 50 transactions per month and the option to waive monthly fees if certain requirements are met. While offering an APY wasnâ€™t a requirement, it was taken into consideration when developing this list. You can check out our full list of the best business checking accounts here.
|5 of the Best Business Checking Accounts|
|Account name||Minimum balance to waive monthly fee||Number of transactions per month with no charge||APY|
|BlueVine Business Checking||N/A||Unlimited||1.00%|
|Axos Bank Business Interest Checking||Average daily balance of $5,000||Up to 50 items||0.81%|
|Radius Bank Tailored Checking||Average monthly balance of $5,000||Unlimited||0.10%|
|TIAA Bank Business Checking||Daily balance of $5,000||First 200 items||None|
|First Citizens Bank Basic Business Checking||None, but must be enrolled in paperless statements to waive monthly fee||Up to 175 items||None|