Having a business checking account is essential to managing your finances and establishing credibility as a small business.
To open a business checking account, you will need to provide certain documents and information to the bank, such as your business’s legal structure, the business’s tax ID, and the owners’ personal information.
In addition, you’ll need to decide which type of account best fits your business’s needs. To help make the process a lot smoother for you, we’ve created this guide detailing everything you’re going to need to open an online business checking account.
With the right information and preparation, you can start managing your business finances with ease.
Table of Contents
Personal Identification
You’ll also need to provide a copy of a government-issued photo ID, like your driver’s license or passport. This is to show that you are who you say you are, and that you’re eligible to open the account.
Employer Identification Number
An EIN is a tax number that identifies your business. It’s the same as a social security number for an individual, with one key difference: it’s not used to identify you as an individual. You’ll need one to open any type of bank account or file taxes on behalf of your business (you can apply for an EIN over the phone).
Some accounts require it if you have employees or are paying contractors, but others don’t—it depends on the bank and what kind of account you’re opening.
Business Details
In order to open a new business checking account, you will need to provide the bank with certain information about your company. Here are the documents banks require from different business types:
- Sole proprietorships — business name registration certificate or business license
- Corporations — articles of incorporation
- Partnership — partnership agreements or other organizational papers
- LLCs — operating agreements
Opening Deposit
Although some banks will not require a deposit, most of them do. The amount of the deposit can vary from $5-$1000 but is typically somewhere between $100 and $500.
This initial funding can be used to fund your account for day-to-day transactions and other business expenses. But if you don’t want to keep your entire cash flow in a business checking account at all times, it can be transferred back into your personal accounts when you need it there.
What You Might Not Need to Open an Online Business Checking Account
Because you can open an online business checking account without a credit check, there’s no reason to put off opening your business checking account.
You are also not required to maintain any minimum balance or pay monthly fees in order to keep your account open. This is great news for small businesses with limited funds, since they won’t have to worry about fees eating away at their profits every month.
In Conclusion
If you’re ready to get started on the path to business ownership, it’s time to open a business checking account. You can do this by setting up an online account with Empower Federal Credit Union and then following the procedures for opening an account.
It’s important that you have the right information available when contacting the bank so that there are no delays in getting your business started on the right foot.