How to open a business bank account

If your brand deal money, client payments, and Friday night takeout all live in the same checking account, this one’s for you.

Opening a business bank account is one of the easiest, cheapest upgrades you can make. It takes an hour or two, it often costs nothing, and it makes taxes, budgeting, and figuring out whether you’re actually profitable so much easier.

Here’s exactly what to bring, what to look for, and how to set it up so it runs itself.

Quick note: this is general information, not financial or legal advice. Requirements vary by bank and state.

Why a separate account matters

You might think a business account is only for “real” businesses. If you’re getting paid for content or client work, you’re a real business.

A separate account:

• Makes taxes simpler. Every business transaction is already in one place, so tracking income and expenses doesn’t mean scrolling through a year of personal spending.
• Protects your LLC, if you have one. The SBA’s guide to opening a business bank account notes that business banking helps with limited personal liability protection by keeping business funds separate from personal funds. Mixing money can weaken that protection.
• Shows you the truth. You’ll see what the business earns and spends, without guessing.
• Looks more professional. Clients pay a business name, not your personal Venmo.

If you haven’t decided on a structure yet, read do you need an LLC first. You can open a business account either way.

What you’ll need

Every bank has its own checklist, so check yours before you go. The SBA lists the usual items: an EIN (or your Social Security number if you’re a sole proprietor), your business formation documents, ownership agreements, and a business license.

Here’s how that usually breaks down.

If you’re a sole proprietor

• Government-issued photo ID
• Your SSN or an EIN. Many sole proprietors use their SSN. Getting a free EIN from IRS.gov is worth it anyway, so you can give clients and platforms an EIN instead of your SSN.
• A DBA certificate, if you use a business name. If you operate as “Studio Sunny” instead of your legal name, many banks will ask for proof you registered that “doing business as” name with your state or county.
• A business license, if your city or county requires one for what you do.

If you have an LLC

• Government-issued photo ID for you and any other owners
• Your LLC’s EIN. Banks generally want this for LLCs, not your SSN.
• Articles of organization (the document you filed with the state)
• Operating agreement. Some banks ask for it, especially if there’s more than one owner.
• A business license, if one applies
• Info about owners. Banks are required to verify who owns and controls a business, so expect questions about everyone with a significant ownership stake.

Bring digital copies of everything. Many applications happen fully online now.

Online bank vs. traditional bank

You’ve got a few options, and none is automatically “best.”

Traditional banks and credit unions

• Physical branches, which help if you ever deposit cash or need in-person help
• More likely to have monthly fees, often waivable with a minimum balance
• Can be a good fit if you want a local relationship for a future loan or credit line

Online banks and fintech apps

• Often no monthly fee and low or no minimums
• Easy app, quick setup, handy integrations with bookkeeping tools
• Cash deposits can be awkward or come with fees

One thing to check carefully with apps: is the company itself a bank, or does it partner with one? Many business “banking” apps are tech companies that hold your money at partner banks. Look for which bank actually holds your deposits and whether those deposits are FDIC-insured. Deposit insurance covers the failure of an insured bank, not problems at the app company in between.

FDIC and NCUA insurance, explained fast

The FDIC insures deposits at member banks. Its standard coverage is $250,000 per depositor, per insured bank, for each account ownership category. Credit unions have a similar setup through the NCUA, which provides share insurance of up to $250,000 per account category at federally insured credit unions.

For most people starting out, that’s plenty. If your business balance ever gets close to that, ask your bank how your specific accounts are covered.

Fees to watch

“Free” accounts aren’t always free. Before you sign up, look for:

• Monthly maintenance fees and what it takes to waive them
• Minimum balance requirements
• Transaction limits. Some accounts cap free transactions or deposits per month.
• Cash deposit fees
• Wire transfer fees, incoming and outgoing. Some brands and international clients pay by wire.
• Overdraft and returned-payment fees
• ATM fees, especially with online banks
• Foreign transaction fees, if you buy software or pay contractors abroad

Compare two or three options. The SBA’s advice is simple: rates and fees vary from bank to bank, so shop around.

How to open it, step by step

1. Pick your structure (sole proprietor or LLC) and get your EIN if you want one.
2. Gather your documents from the list above.
3. Compare 2 to 3 banks or credit unions on fees, minimums, deposits, and app features.
4. Apply online or at a branch. Use your legal business name exactly as it appears on your documents.
5. Fund the account with your first deposit, if required.
6. Order a business debit card and use it only for business purchases.

Connect it to your platforms and payouts

This is the part people skip, and then wonder why their “business account” never gets used.

Update your payout details everywhere. Go through every place that pays you: subscription platforms, brand deal marketplaces, affiliate programs, payment processors, and client invoicing tools. Switch payouts to the new account.

Keep your tax info consistent. Many platforms ask for tax details, like a W-9. Make sure the name and tax ID you give them match how you file taxes. If you set up an LLC or EIN, you may need to update your tax info on those platforms, not just your bank info.

Move business subscriptions over. Editing apps, scheduling tools, cloud storage, your domain. Put them all on the business card.

Pay yourself on a schedule. Transfer money from the business account to your personal account on a set schedule, like twice a month. It keeps things clean and helps if your income swings. Our guide to budgeting on irregular income shows how to pick a steady “paycheck.”

Set up a tax savings bucket. Open a second business savings account (many banks let you open several) and move a percentage of every payment into it for taxes. See creator taxes 101 for why and how much.

Your business bank account checklist

• Decide sole proprietor or LLC
• Get a free EIN from IRS.gov if you want one
• Gather ID, EIN or SSN, formation documents, DBA and license if needed
• Compare 2 to 3 banks on fees and features
• Confirm FDIC or NCUA coverage, and which bank actually holds your money
• Open the account and order a business card
• Switch every platform payout and business subscription over
• Update your tax info where needed
• Set up a separate tax savings account
• Pay yourself on a schedule

Do this once, and every future tax season gets easier.