Whether you're a sole proprietor or run an LLC, a dedicated business bank account keeps your finances organized and makes tax time considerably less painful. Most banks can open one in a single visit or online session if you come prepared.
Documents you'll typically need
- A valid government-issued ID for each account owner.
- Your Employer Identification Number (EIN), or Social Security number if you're a sole proprietor without one.
- Business formation documents, such as articles of organization or a DBA filing, if applicable.
- An initial deposit, which varies by bank.
Why separating the money matters
Beyond simpler bookkeeping, keeping business and personal funds separate helps protect the legal liability shield of an LLC or corporation — mixing funds, sometimes called "commingling," can undermine that protection if the business is ever sued.
Compare fees before you commit
Business checking accounts often have monthly maintenance fees that can be waived with a minimum balance or transaction volume — worth comparing before choosing a bank.
