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.

    • Related Articles

    • What Does One Need To Open A Trust Bank Account

      First, ensure the Trust Corpus and forms are properly filled out (do not sign them yet). Next, get the EIN from the IRS, online. With these materials in hand, set up an appointment for one of the following banks: Chase Bank TD Ameritrade PNC CitiBank ...

    • Does The Trust Bank Account Need To Be A Personal or Business Account

      One does not need a business account for the trust except when building corporate credit. What matters is that the account is non-interest bearing.

    • Bank Denial For Opening A Trust Account

      One may need to try the same bank but a different branch. Most students don't have issues, but everyone has opened a trust account after a 2-3 tries. It all depends on the attorney's interpretation of the trust indenture.

    • Which Bank Is The Best Provider For A Business Checking Account

      Navy Federal Credit Union (NFC) is one of the best providers for a business banking account. It should be noted that they only report to personal credit which is why this topic is only including in High Credit Secrets (personal credit course) and ...

    • Driver's License or Passport For Opening Trust Bank Account

      It does not matter. The bank accepts both and they are equally private. If absolute privacy is required, this is where a registered banking agent comes in. Through a one-time appointment of an agent with banking privileges to open a bank account on ...