If you’re serious about growing your start-up, small business or side hustle then a business banking account is a must. A business checking account offers any enterprise suite of valuable solutions including merchant services to process credit card and ACH payments, enhanced online banking access, duplicate debit cards, and much more.
The steps and documentation required to open a business banking account do differ from those for personal banking, and requirements also vary according to the type of business for which you are opening an account.
In this blog, we’ll explain how to open a business checking account. We’ll detail the documents you need to provide, explain how to open your business account, and provide a list of steps to guide you through the process.
CHECKLIST OF REQUIRED DOCUMENTS
The following table summarizes the documentation required to open a business checking account for different types of businesses.
Documentation |
Why It’s Needed |
 State-Issued ID |
A state-issued ID, such as a driver’s license or passport, to prove your identity. |
 Social Security Number or EIN |
If you are a sole proprietor, you can use your Social Security number. However, for most LLCs and corporations, a federal Employer Identification Number (EIN) is necessary. |
| Proof of Address |
You will likely need to provide a lease agreement or utility bills to confirm your business’s physical location and mailing address. |
| Business License, Articles of Organization or Incorporation |
Documents that prove your business' legal existence. Depending on your business structure, these might be:
|
| Additional Documents |
For incorporated enterprises or partnerships, you might need additional documents such as a resolution of authority, or partnership or operating agreements to prove your authority to establish banking relationships for your business. |
5 STEPS TO OPEN A BUSINESS CHECKING ACCOUNT
While the documentation may differ, the steps to opening a business account are similar to those needed to open a personal checking account.
1. CHOOSE A BUSINESS ACCOUNT THAT FITS YOUR NEEDS
Choose a business checking account that fits your needs. Many businesses find local credit unions offer a great combination of service, flexibility, and tailored business products. Credit unions often offer multiple checking accounts designed for businesses of various sizes.
2. GATHER THE REQUIRED DOCUMENTS
Refer to the checklist above to gather all necessary documents. Make sure your documents are up to date and reflect your business’s current status.
3. APPLY ONLINE
Complete the online application form provided by your credit union or bank. You need to provide your personal information as well as details about your business, including its legal name, address, type of business entity, and details from the documents you’ve gathered.
4. FUND YOUR ACCOUNT
Once your application is approved, you may be required to make an initial deposit to fund your new business checking account. This depends on your credit union’s requirements.
5. SPEND AND EARN!
You’re ready to start using your new business checking account to manage your company’s finances, including receiving payments, settling accounts, and even earning dividends! You’ll find it easier to track expenses and share financial management and spending privileges.
WHAT TO LOOK FOR WHEN CONSIDERING A BUSINESS CHECKING ACCOUNT
When choosing a business checking account, it’s important to look for features that will save you money and solve specific problems for your business operations. Here are some key factors to look for:
LOW FEES
Business checking accounts may include monthly maintenance fees, transaction fees, or deposit charges. Look for an account that minimizes these costs.
HIGH TRANSACTION LIMITS
Businesses typically handle a larger volume of transactions than personal accounts. Be sure the account you choose has high transaction limits to accommodate your business activities without incurring extra fees.
ONLINE AND MOBILE BANKING
Look for robust online and mobile banking services so you can manage a higher volume of transactions efficiently from anywhere. Find out how easy it is for your business partners or employees to access banking services. Also look for features like mobile check deposit, account alerts, and the ability to integrate with your accounting software.
EMPLOYEE DEBIT CARDS
Do you have employees who need to make purchases or withdraw cash on behalf of the business? Choose an account that offers employee debit cards. These should come with spending and ATM withdrawal limits, allowing you to control and monitor expenses.
MERCHANT SERVICES
Merchant services are critical for businesses that accept credit card payments, as well as ACH (Automated Clearing House) and wire services that allow for electronic payments in and out of your account. These specialized services streamline the acceptance and processing of these payments.
ENHANCED SECURITY AND FRAUD PROTECTION
Find a business account that offers enhanced security measures, such as secure online banking, fraud detection and prevention tools, and deposit insurance to safeguard your funds.
EXTRA PERKS
Some business checking accounts come with valuable perks that can make a real difference to your business such as discounted fees on loans, a referral to a business coach, and free consultation with a financial advisor.
WASATCH PEAKS: YOUR BUSINESS CHECKING PARTNER
Ready to take your small business, start-up, or side hustle to the next level? At Wasatch Peaks, we have all the tools you need, plus a long track record of helping local businesses thrive in north-central Utah.
Our Aspire, Vista, and Pinnacle business checking accounts are designed to meet the needs of businesses from start-ups to established players with significant revenue, and each account comes with a host of free services and added perks.
Contact us today to discuss the best business checking account for your needs, or click below to learn more about how we open doors for local entrepreneurs with full-service, affordable business checking services.
