What Does One Need to Open a Business Account

What Does One Need to Open a Business Account

It is suggested that you look for an SBFE member bank to open a business account with if you plan to build corporate credit, but this isn't a requirement. See the following excerpt from Corporate Credit Secrets on opening a new business account:

It is okay to open your business bank account with your SSN (almost all banks will require this to avoid fraud). You can try to open it with just the EIN but they’ll almost always request a SSN. Validate the bank will use your SSN for identity & verification purposes only. It should state somewhere that “the SSN is being supplied for identity verification only. I do not consent to a credit check or personal guarantee.” 

Here are the documents you might be asked for, a list is given based on the business entity that was chosen:

  • Partnerships: Partnership agreement, business name registration certificate, business license, state certificate of partnership.
  • LLCs: Articles of organization, LLC operating agreement, business license.
  • Corporations: Articles of incorporation, corporate bylaws, business license.

Here’s what you’ll need to bring to the bank when you open your business bank account.

  1. 2 forms of ID for the principles on account (e.g. driver's license + passport) *if living at a different address than what is listed on your ID, bring a utility bill, cable bill, or phone bill so the bank can verify your address
  2. SSN - when you open your business bank account - you WILL often need to supply your SSN (or TIN) to verify that you are who you say you are. *This is one of the ONLY times it may be absolutely necessary to supply your Social Security Number.
  3. The company’s EIN
  4. The company’s registration documents (e.g. Articles of Organization, operating agreement, business license, etc.)
  5. Letter of Good Standing or Foreign Filing *only if incorporated in another state than your bank
  6. Cash to deposit. Each bank has different minimum balance requirements to open an account so check beforehand (usually its $50-2,500).

Even if your initial deposit doesn’t have to be very large, regardless, you do want to keep as much money in one of your business checking accounts as possible as this will lead to a stronger credit profile and lead to more credit approvals.