Complete Guide for Beginners How to Open a Business Bank Account Online

Filed in Online Banking by on November 25, 2020 0 Comments

How to open a business bank account online – Not only does a business bank account look more professional, it also makes it easier to file your taxes, track your cash flow, and get a line of credit.

As a small business owner busy managing just about everything, you are not alone if you feel extremely frustrated having to haul yourself to a bank branch to open a business bank account. That’s why it’s definitely worth studying how to open a business bank account online from the comfort of your office or home.

How to open a business bank account online?

1. Decide what type of account you need

The first step is to figure out what type of business bank account you need. A business checking account is good for daily expenses. It may come with a debit card, check writing privileges, merchant services and other perks to help you manage your money.

A savings account for businesses is better for storing excess capital. You’ll earn a competitive interest rate, but you may pay penalty fees if you need to tap into funds more than six times a month.

2. Find a bank

Once you’ve figured out what type of account you need for your business, the next step for how to open a business bank account online is to find the banks that offer what you need.

First, you have to find banks that offer the option to open a business bank account online. And then, within those options, you’ll have to find the type of bank account whether it be checking or savings that your business needs.

We’ll be 100% honest with you – there are not a ton of traditional banks that will allow you to open a business bank account online, however as technology advances, more online banks allow you to open a business bank account completely online.

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3. Gather your documentation

Once you have found a bank, it’s time to gather your documents. The exact documentation you need depends on your business structure. You’ll need your personal information, including your Social Security number and government-issued photo ID, along with your business formation documents.

4. Apply for your chosen account

Now, that you’ve taken care of the above steps to open a business bank account online, the next step is just a click. All you will need is to fill out a bit of information and confirm your identity. Once your account is officially open, it’s time to set everything up. You’ll want to:

  • Fund your account with an initial deposit.
  • Switch over any direct deposits or bill payments to your new account.
  • Connect your account to an accounting software to make bookkeeping a breeze.

What do you need to open a business bank account?

Here’s a list of the eligibility requirements and documentation you need to open a business bank account:

Eligibility

Every bank is different, but generally you can open a business bank account if you’re:

  • At least 18 years old
  • US citizen or resident

Required Information

Opening a business bank account will require information about you and your company. You’ll need to provide the following information for every individual listed on the account:

  • Full name
  • Date of birth
  • Residential address
  • Citizenship status
  • Social Security number or Individual Taxpayer Identification number
  • Government-issued photo ID
  • Percent of company ownership

The business documents you’ll need depends on your entity type. Here’s what you’ll need to provide based on your company structure:

Business typeRequired documents
Sole proprietorSocial Security number or Employer Identification Number, Business license
General partnershipEmployer Identification Number or Partnership TIN, Business license, Partnership Agreement
Limited liability corporation (LLC)Employer Identification Number, Business license, Articles of Organization
Limited partnership (LP) or limited liability partnership (LLC)Employer Identification Number, Business license, Articles of Organization, Partnership Agreement
For-profit corporationEmployer Identification Number, Business license, Articles of Incorporation
Nonprofit corporationEmployer Identification Number, Business license, 501(c) Letter, Articles of Incorporation

How much money do I need to open a business account?

This table shows how much money you need to open a business bank account at several major US banks.

BankMinimum deposit
Bank of America$100
Citigroup$0 to $1
JPMorgan Chase$0
TD Bank$25 to $200
Wells Fargo$25

How long does it take to open a business bank account?

It could take you less than 30 minutes to submit your application online if you have all your documents handy. The verification process could take a day or two and you’ll typically receive your debit card in the mail seven to 10 business days later.

If you open an account in person, it could take an hour or more to complete your application — and you may have to book an appointment in advance. But you could get your debit card on the spot.

Opening a business bank account online may seem daunting, but it’s actually quite easy. Once you’ve found your bank, check if you can apply online. Then gather your documents and apply. As always, compare the best business bank accounts before making a decision.

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