How to Open a New Business Bank Account

Opening a new business bank account is a simple, easy-to-follow process.

A business is required to have both savings and checking bank accounts. Business operations involve money flowing in and out of the organization, and a bank account is the vehicle for those transactions. Establishing a new bank account is also important to keep business financial transactions separate from personal ones to make sure that income and output are distinguishable. Setting up a new business account is a process that involves following certain steps to meet eligibility requirements.

Instructions

1. Start your business by following the appropriate and legal states mandated by your state. Prepare a business plan outlining your business operations, relevant market data, regional analysis, business ownership structure and projected financial statements. Register your business name to comply with state required fictitious-name requirements. Obtain all business licenses required by state and local governments for operational compliance. Obtain a federal tax identification number from the Internal Revenue Service. Make sure that you have established and started your business properly before opening a business bank account as proper business ownership and identification information will be required by the financial institution.

2. Make a copy of your driver's license, Social Security card and personal tax returns for the past five years if you own a sole proprietorship business. Include copies of the same identification documents for all other owners for your business if your business is a partnership. Include articles of incorporation if your business is incorporated.

3. Compare bank account fees and regulations to select the appropriate bank to suit your business needs. Pay attention to account minimums, minimum monthly deposit schedules, checking fees and ATM fees. List the fee structures for all banks and determine which bank has lower fees for the type and amount of banking business that you will normally perform.

Tips & Warnings

• Do not sign any forms or documents without carefully reading through all information.

References

• Wall Street Journal: How To Shop For A Bank
• American Bankers Association

Resources

• FDIC