How to Open a Small Business Bank Account

Follow bank rules when opening any account.

Opening a small business bank account is an important part of establishing any small business. No matter how small the business, it must have dedicated banking accounts. Even if the owner is a sole proprietor, the division of funds from personal accounts will help establish the business' future credit history. Business banking accounts make business accounting transparent for audits, and it is an IRS requirement for businesses planning to expand beyond the business status of a sole proprietorship.

Things You'll Need

• Tax identification number or sole proprietor's Social Security number
• Business name filing documents
• Business' organizing documents
• Signatories (the person or people who will have full access to the accounts)
• Government-issued photo identification, such as a driver's license, military ID or passport

Instructions

1. Find lending banks certified by the Small Business Administration, and compare each bank's business products. Choose a bank that is a U.S. Small Business Administration (SBA) Lender, an SBA Express Lender or an SBA Patriot Express Lender. According to the SBA, certified lenders account for one-third of all SBA business loan guaranties. Choosing to do business with an SBA-approved lender bank will make getting a future SBA loan easier by establishing a financial history with the bank. The SBA offices in your state (use the link in Resources) will have a local list of certified lending institutions.

2. Organize the business documents required to open a business account. Contact the bank's business account manager and ask which business documents are needed to open a business account. Sole proprietorships, partnerships, limited liability companies (LLC), S corporations, non-profits or associations each have a different set of required documents. A tax identification number, business name filing document and business organizing document (used to establish a business other than a sole proprietorship) are some examples of what a business owner may need to bring to the bank.

3. Set up an appointment to meet with a business banker. Review all the business banking options offered and select the best one for the business. Bring all of the required business documents, personal photo identification and the main signatories for the accounts to the appointment. The banker will fill out the required business application and will set up each of the accounts needed by the business.

4. Review all bank account documents for errors. Before leaving the bank, check all paperwork for the proper information, like name, signatory information and the accounts chosen. It is easier to make corrections, change accounts or add information prior to leaving the bank.

References

• "Wall Street Journal": How to Shop for a Bank
• Internal Revenue Service: Tax Information for Businesses
• American Bankers Association: Center for Commercial Lending and Business Banking

Resources

• Small Business Administration: Programs and Services