A separate business bank account keeps your finances organized, simplifies taxes, and builds credibility. Here’s how to set it up:
Choose the Right Bank & Account Type
Traditional banks (Chase, Bank of America)
Online banks (Novo, BlueVine)
Credit unions (local or national)
Business checking (essential for day-to-day transactions)
Business savings (if holding reserves)
Merchant account (if accepting credit cards)
Minimum balance requirements
Integrations with accounting software (QuickBooks, Xero) Gather Required Documents
Business formation documents:
LLC: Articles of Organization
Corporation: Articles of Incorporation
Partnership: Partnership Agreement
Sole Proprietorship: May only need a DBA (“Doing Business As”) filing
Employer Identification Number (EIN) (or SSN for sole props)
Government-issued ID (driver’s license, passport)
Business license/permits (if applicable)
Utility bill or lease agreement (for business location) Open the Account
Apply online or in-person:
Online banks often offer faster setup.
Traditional banks may provide in-person support.
Deposit the minimum required amount.
Order checks/debit cards:
Request business-branded checks/cards (optional but professional). Set Up Online Banking & Tools
Enable online/mobile banking:
Set up alerts for low balances or large transactions.
Connect accounting software:
Sync with QuickBooks, FreshBooks, or Wave for easy bookkeeping.
ACH transfers, wire transfers, or bill pay. Additional Financial Tools
Build credit history and separate expenses (e.g., Chase Ink, Amex Business Gold).
For online payments if needed.
Set up multi-factor authentication and account alerts. Maintain Compliance
Avoid mixing personal/business transactions (piercing the corporate veil risks) .
Monitor monthly statements for errors or unexpected fees.
Update signatories if business ownership changes. Bonus Tips
Start small: No-fee online business accounts (like Novo or Lili) are great for solopreneurs.
Build credit: Use your business credit card responsibly to qualify for loans later.
Automate: Schedule recurring transfers to a savings account for taxes/emergencies.
