How to open a business bank account in three easy steps in 2023

A dedicated bank account offers many benefits to a business owner. You can use it to make payments in your company’s name and save your profits with a relatively high interest rate. The good news is that opening a corporate bank account is simple. You can do it in three easy steps, which we’ll explain in detail.

1. Documentation

You need several documents if you want to open a business account, including:

• Personal identification: You must provide valid identification as a business owner. It could be a driver’s license, passport, or government-issued identification card. This is needed for the bank to prove your identity.
• Business Identification: You have to provide details proving your company’s identity and legitimacy. Banks usually request your Federal tax identification number (EIN) or the Certificate of Incorporation issued by your local government.
• Articles of Incorporation: A legally binding document that all shareholders sign indicating their intention to form a corporation. Banks need this document for identification purposes if your firm has multiple shareholders.
• Business License: You’ll need to provide a government-issued business license if you’re operating in strictly regulated industries such as pharmaceuticals, law, food production, financial services, etc.
• Financial Statements: Some financial institutions require past financial statements to prove your corporation’s legitimacy.

2. Select the type of account

You can open different types of corporate accounts, including

Checking

A checking account is versatile and the most popular type. It’s suitable for day-to-day transactions, including payroll, vendor payments, maintenance expenses, etc. They work like typical accounts: you can make deposits, withdrawals, and transfers anytime. 

Savings

This type is where you keep money that you don’t need in the short term. You can store your profits in it, and the good thing is that banks usually offer healthy interest rates for savings accounts. However, you can’t access funds as freely as with checking accounts.

Merchant

This type allows you to accept online payments from debit or credit cards. When a customer makes a payment, it goes to the merchant account to be processed before arriving in your other checking or savings accounts.

Money Market

Money market accounts (MMAs) pay higher interest rates and offer insurance past the usual government limit. The trade-off is that requires a high minimum deposit and has limited transactions.

Foreign Currency

You can open accounts to store money in foreign currencies. It works like a typical checking or savings account but with another currency. The drawback is that it usually has high fees.

3. Open your account

You can open a business account online or in person. Online registration is more convenient because you don’t need to be physically present at the banking branch. You can simply complete an application on the bank’s website or mobile application. You’ll submit your documents online just as you’d do in person.

After submitting your documents, you’ll wait for a review. If approved, your financial institution will contact you and provide your account details. Afterward, you can start transacting seamlessly. You can also request additional services such as a debit/credit card or loan.

Conclusion

Corporate accounts make you look more professional to customers and fellow businesses. They also offer limited liability protection by keeping business funds separate from personal funds. We have explained how to open a corporate account in three easy steps.