In order to open a business bank account, you’re required to have articles of incorporation, ownership documents, employer identification number and personal identification documents. By opening a business bank account, you’ll limit your personal liability by keeping your business and personal funds separate from one another. If you’re a small business, check out this great resource from the U.S. Small Business Administration for more info. Let’s dive in.
To start, there are four types of business bank accounts you can consider opening for your limited liability company (LLC):
- Checking account for managing payroll, expenses, and keeping your business running
- Savings account to hold your business earnings and potentially accrue interest
- Merchant account if you intend to accept credit and debit card payments for your business
- Credit card account for purchasing items for your business, gaining certain credit card member benefits, or having it for emergencies
When you open a business account, you need to select and finalize a bank for your accounts. Don’t assume bigger banks are better or smaller banks are not the best. You’ll be surprised when you start researching that offers, protections, and benefits vary from bank to bank. Here are some things you’ll want to check for when selecting a bank:
- Setup and sign up process - some banks require in-person meetings, signed documentation, etc. before you can open an account
- Introductory offers that may save you money or provide benefits to you as a business
- Interest rates for savings, checking, and lines of credit
- Transaction fees and foreign transaction fees
- Early termination fees
- Minimum account balance fees
- Annual fees
- Overdraft protection
