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How do I open a business bank account?
May 4, 2026 | 5 minute read
Answered by
Eric Calaman
Business Executive
Bank of America
Key takeaways
- Opening a business bank account helps separate personal and business finances, making cash flow tracking and recordkeeping easier.
- Having key documents ready such as an Employer Identification Number, formation papers and personal ID can speed up opening a business bank account.
- Using the right accounts supports different needs, with a business checking account for daily operations, a merchant services account for credit or debit card payments and a business savings account for future growth.
If you’ve started a new business, one of the most important steps you can take to keep your personal and business finances separate is to open a business bank account.
As a new business owner, you may not know what to expect when you open a business bank account. You can usually apply for one fairly quickly by filling out the required forms and providing the documentation the bank requires. Knowing the information and documents required in advance can streamline the process of getting it set up.
What do I need to open a business bank account?
Business bank accounts can generally be opened digitally online or through a mobile device. Alternatively, business owners can visit a bank branch or call to start an account.
You may need some or all of the following, depending on how you have formed your business’s legal structure:
- The address and phone number of your company (must be valid and verifiable)
- The name(s) of the people who will be listed as account owners
- Personal identification such as your driver’s license
- The bank’s minimum deposit amount (unfunded accounts may be forced to close)
- Documentation that proves the existence of the business, such as:
- A federal tax ID number for the business, also known as an Employer Identification Number
- Your Social Security number if you are a sole proprietor
- State or local authority documents that show you’ve formed a legal entity (see table below)
What business formation documents are needed?
Required documents depend on how your business is structured, but typically include:
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Column Header
Document title |
Column Header
Description |
Column Header
Applicable business entities |
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|---|---|---|---|---|
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Articles of Incorporation |
A state-filed legal document (corporate charter) that officially creates a corporation. It provides key details such as the corporate name, purpose, registered agent, share structure and incorporator information. Used by banks to verify the corporation’s legal existence. |
Corporations |
||
|
Articles of Organization |
The official state filing that creates a limited liability company (LLC). It lists the LLC’s legal name, principal address, registered agent and management structure (member‑managed or manager‑managed). Banks use it to confirm the LLC’s legal formation and ownership structure. |
LLCs |
||
|
Certificate of Formation |
A state-issued formation document (name varies by state) that legally establishes a new business entity — often an LLC or corporation. Includes required details such as business name, registered agent and business purpose. Banks use it as proof of legal formation. |
Corporations, LLCs (varies by state) |
||
|
Certificate of Incorporation |
A state-issued certificate confirming the corporation’s formation documents have been filed and approved. Serves as formal proof that the corporation legally exists and is authorized to operate. |
Corporations |
||
|
Certificate of Limited Partnership |
A state-filed document that officially creates a limited partnership (LP). Identifies at least one general partner and one limited partner and provides basic business information. Filing this certificate grants limited liability protection to limited partners. Banks use it to verify LP formation. |
LPs |
||
|
Certificate of Registration (Foreign Entity/Certificate of Authority) |
Authorization for a business formed in another state (“foreign entity”) to legally operate in the registering state. Requires proof of good standing from the home state and designation of an in-state registered agent. Banks require it when an out-of-state entity opens accounts locally. |
Out‑of‑state corporations, LLCs |
||
|
Limited Partnership Agreement (LPA) |
A private, legally binding contract that governs an LP. It outlines partner roles and responsibilities, capital contributions, profit sharing, management authority and dispute resolution processes. Banks may request it to verify who is authorized to act on behalf of the partnership. |
LPs |
||
|
DBA / Trade Name / Fictitious Name Registration |
A state, county, or local filing that registers an alternate name under which a legal business entity conducts business. This filing does not create a separate legal entity and does not change ownership or liability; it links the trade name to the underlying legal entity. Banks use this document to validate account names and business operations conducted under a name different from the legal entity name. |
Corporations, LLCs, LPs, sole proprietors |
|
Column 1 Content Row 1
Articles of Incorporation |
Column 2 Content Row 1
A state-filed legal document (corporate charter) that officially creates a corporation. It provides key details such as the corporate name, purpose, registered agent, share structure and incorporator information. Used by banks to verify the corporation’s legal existence. |
Column 3 Content Row 1
Corporations |
|
Column 1 Content Row 2
Articles of Organization |
Column 2 Content Row 2
The official state filing that creates a limited liability company (LLC). It lists the LLC’s legal name, principal address, registered agent and management structure (member‑managed or manager‑managed). Banks use it to confirm the LLC’s legal formation and ownership structure. |
Column 3 Content Row 2
LLCs |
|
Column 1 Content Row 3
Certificate of Formation |
Column 2 Content Row 3
A state-issued formation document (name varies by state) that legally establishes a new business entity — often an LLC or corporation. Includes required details such as business name, registered agent and business purpose. Banks use it as proof of legal formation. |
Column 3 Content Row 3
Corporations, LLCs (varies by state) |
|
Column 1 Content Row 4
Certificate of Incorporation |
Column 2 Content Row 4
A state-issued certificate confirming the corporation’s formation documents have been filed and approved. Serves as formal proof that the corporation legally exists and is authorized to operate. |
Column 3 Content Row 4
Corporations |
|
Column 1 Content Row 5
Certificate of Limited Partnership |
Column 2 Content Row 5
A state-filed document that officially creates a limited partnership (LP). Identifies at least one general partner and one limited partner and provides basic business information. Filing this certificate grants limited liability protection to limited partners. Banks use it to verify LP formation. |
Column 3 Content Row 5
LPs |
|
Column 1 Content Row 6
Certificate of Registration (Foreign Entity/Certificate of Authority) |
Column 2 Content Row 6
Authorization for a business formed in another state (“foreign entity”) to legally operate in the registering state. Requires proof of good standing from the home state and designation of an in-state registered agent. Banks require it when an out-of-state entity opens accounts locally. |
Column 3 Content Row 6
Out‑of‑state corporations, LLCs |
|
Column 1 Content Row 7
Limited Partnership Agreement (LPA) |
Column 2 Content Row 7
A private, legally binding contract that governs an LP. It outlines partner roles and responsibilities, capital contributions, profit sharing, management authority and dispute resolution processes. Banks may request it to verify who is authorized to act on behalf of the partnership. |
Column 3 Content Row 7
LPs |
|
Column 1 Content Row 8
DBA / Trade Name / Fictitious Name Registration |
Column 2 Content Row 8
A state, county, or local filing that registers an alternate name under which a legal business entity conducts business. This filing does not create a separate legal entity and does not change ownership or liability; it links the trade name to the underlying legal entity. Banks use this document to validate account names and business operations conducted under a name different from the legal entity name. |
Column 3 Content Row 8
Corporations, LLCs, LPs, sole proprietors |
The document title may vary by state. A banker can help confirm which documents are needed based on your business type and location.
Why open a business bank account?
It makes it easier to track your business’s inflows and outflows, so you have a bottom-line accounting of revenue and expenses. It can be challenging to do your taxes accurately at year-end if you have commingled your personal or family finances with those of your business.
Business bank accounts make it easier for you to give another person — like a business partner or bookkeeper — access to your transactions. And business bank accounts come with many tools not available on consumer accounts that make it easier for you to run your business.
Establishing a business bank account can also help you build your business’s credit profile.
What types of business bank accounts are there?
Three types of business bank accounts can help you operate your business.
- A business checking account allows you to accept deposits and make payments and serves as the core operating account for your business. A business checking account will also enable access to the many digital tools and capabilities your bank provides. Not all banks use the word “checking” to describe these business operating accounts.
- A merchant services account enables you to accept credit and debit card payments from your customers. It can be connected to your checking account.
- A business savings account or business CD account allows you to put money aside for taxes or big purchases. These accounts pay interest on the balance.
What is there to consider when picking a type of business bank account?
Here are some things to look at:
- Fees and minimum balances. Ask how much you will pay. Remember banks might waive fees if you keep a minimum balance or use your business debit card a certain amount.
- Cost of merchant services. This is the cost of accepting credit or debit cards, so estimate your monthly costs based on the size and frequency of your credit and debit card transactions with customers.
- Digital tools. Look for an account that provides access to business-specific digital capabilities such as cash flow tools, integration with accounting platforms and payment and invoicing abilities.
- Customer service. How easy is it to get help? Can you meet with someone in person if you need to?
- Perks or rewards. Many accounts and affiliated credit cards have point programs or membership programs that will provide incremental benefits based on your relationship and account balances.
- ATM access. Do you need to withdraw cash or make deposits through an ATM?
- Branch access. If you need to visit a branch and speak with a specialist, how easy and convenient will this be? Many owners find that it is worthwhile to stop in regularly and build a strong working relationship with their bankers, who can be a source of valuable insight as a business grows.
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