How to Open an Online Business Account
One of the first things business owners should do when they start a new business is set up a business checking account. Having a separate business checking account keeps business funds separate from personal funds, for mingling the two can lead to accounting difficulties. Opening a business account online is very similar to opening one in person at a local bank branch office. The only difference is that you must fax, mail or email copies of certain paperwork to the bank to complete the application.
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Things You'll Need
- Articles of Incorporation (corporations and S corporations only)
- Articles of Organization (LLCs only)
- Assumed Business Name documentation
- Initial deposit
- Business license
- Employer Identification Number
- Photo ID
Instructions
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Research several online banks and compare the various fees and interest rates they offer. Some banks offer services such as free checking and no minimum balances. Decide which features are most important for your business.
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Go to the website of the bank you choose to complete an online application for a business checking account. Business checking accounts are different from personal checking accounts, so make sure you select the correct application.
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Once you've completed the application, you must deposit money into the account to establish a balance. You should plan on depositing at least $100 dollars initially. Most online accounts allow you to transfer funds from another bank account by entering the account's number online. If you prefer to write a check to make the deposit, note that using a check will delay your account's activation by several days while the check clears.
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Fax, mail or email copies of the following documents to the bank: business license, Assumed Business Name documentation, Employer Indentification Number and Articles of Incorporation (corporations and S corporations only) or Articles of Organization (LLCs only).
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Tips & Warnings
Banks typically offer applicants the option to purchase checks for their new account, but you should wait on doing this. Make sure your account is approved before ordering checks. You may also be able to order checks much cheaper from another provider, which you can find through an online search. The bank will issue you free blank starter checks by mail as soon as it approves your account.
