The Complete Guide to a Business Bank Account

Opening a business bank account is one of the first and most important steps when starting a company. Whether you run a small business or an LLC, keeping your personal and business finances separate is crucial for organization, legal protection, and tax purposes.

In this guide, we’ll cover everything you need to know about choosing, opening, and managing the best business bank account for your needs—from traditional options to an online business bank account with low or no fees.

Why You Need a Business Bank Account

Mixing personal and business finances can lead to confusion, accounting headaches, and even legal complications. A dedicated small business bank account helps you:

• Track expenses and income accurately

• Simplify tax filing

• Build business credit

• Appear more professional to clients

If you operate as an LLC or corporation, a separate account is often legally required to maintain liability protection.

Types of Business Bank Accounts

Not all accounts are the same. The right choice depends on your business size, transaction volume, and banking preferences.

1. Business Checking Accounts

The most common option, ideal for daily transactions. Look for features like:

• Low or no fees

• Free transactions

• Online banking

2. Business Savings Accounts

Useful for setting aside emergency funds or saving for future expenses. Some earn interest, helping your money grow.

3. Online-Only Business Accounts

Banks like Wise (formerly TransferWise) offer a wise business bank account with multi-currency support, low fees, and easy international transactions.

4. Merchant Services Accounts

If you accept card payments, you may need a merchant account alongside your regular business bank account.

How to Open a Business Bank Account

The process is straightforward, but requirements vary by bank. Here’s what you’ll typically need:

What Do You Need to Open a Business Bank Account?

• Business name registration (DBA or legal entity documents)

• Employer Identification Number (EIN) (or Social Security Number for sole proprietors)

• Business license or permits (if applicable)

• Ownership agreements (for partnerships or LLCs)

• Personal identification (driver’s license, passport)

If you’re wondering, “What do I need to open a business bank account?” check with your chosen bank beforehand to avoid delays.

Best Business Bank Accounts in 2024

Choosing the best small business bank account depends on your needs. Here are some top options:

1. Traditional Banks

• Chase Business Complete Banking – Good for in-person service.

• Bank of America Business Advantage – Strong for cash deposits.

2. Online Banks

• Novo – A free business bank account with no monthly fees.

• Bluevine – High-interest business checking.

3. Credit Unions

Often offer lower fees and better customer service.

4. Digital-First Options

• Wise Business Account – Best for international transactions.

• Relay – Great for multi-account management.

Opening a Business Bank Account Online

Many banks now let you open a business bank account online without visiting a branch. The steps usually include:

1. Choose a bank (compare fees and features).

2. Fill out the application (provide business details).

3. Upload documents (EIN, ID, business paperwork).

4. Fund the account (some require an initial deposit).

An online business bank account is convenient, especially for freelancers and digital businesses.

Business Bank Account for LLC

If your business is an LLC, opening a separate account is critical to maintain legal protection. Here’s what to consider:

• Use your EIN, not your SSN (keeps finances distinct).

• Check state requirements (some banks need LLC operating agreements).

• Avoid personal expenses (mixing funds can weaken liability protection).

Avoiding Fees: Free Business Bank Account Options

Many banks offer accounts with no fees, but watch for:

• Minimum balance requirements

• Transaction limits

• ATM fees

Some best online business bank account providers, like Novo and Axos, have no monthly fees, making them great for startups.

Final Tips for Managing Your Business Account

• Monitor transactions regularly (catch errors or fraud early).

• Use accounting software (QuickBooks, Xero) for better tracking.

• Keep personal and business spending separate.

• Review fees annually (switch banks if needed).

Conclusion

A business bank account is essential for financial clarity, legal protection, and professional growth. Whether you open a business bank account online or at a traditional bank, choose one that fits your transaction needs and budget.

Ready to get started? Compare the best small business bank account options today and take control of your business finances!