We have pulled strategies on how to open a business bank account for you and your brand without further question or any challenge. Opening a business bank account requires more effort than opening a personal account. There are documents to gather, names to be determined and licenses to get in order.
Business bank accounts, also known as BBAs, help you professionally manage your business finances and separate those funds from your personal finances. A business bank account keeps your business finances separate from your personal funds. A BBAs benefits are that it helps limit your personal liability and customers can pay your company directly. Further, the bank may also provide you with a line of credit and a business credit card that you can use to build a credit history.
Below are some of the few original and dependable steps to follow when getting a way out of the question of how to open a business bank account:
Decide Which Type of Business Bank Account to Open
Most businesses should start with a dedicated business checking account. If your business is small, that may be all you need. Business checking accounts are often free and many have no minimum balance requirements. But there are several other BBAs — business savings accounts, merchant services and even business credit cards — each with its purpose and benefits.
While you might start with a single business checking account, as your company and your cash flow grow, you’ll likely need multiple business accounts — from multiple business banks. Some businesses keep payroll in a separate business checking account at a different bank from their main operating account. Others leverage a high-yield savings or business money market account to save for emergencies or longer-term goals, such as expansion.
Compare Business Checking Account Options
Business accounts vary in features, account limits, fees and perks. Decide what’s important to you and your business, then compare your options. Consider the following factors when determining where to open your business account:
- Monthly fees.
- Minimum balance requirements.
- Included fee-free transactions.
- ATM access (withdrawals and deposits).
- Wiring, transfer and payment capabilities.
- Incidental fees (stop payment, nonsufficient funds, overdrafts).
Additional features, including bill pay, invoicing, accounting software integration or other business tool integrations.
Gather the Necessary Documents, Information
Depending on the financial institution, what you’ll need to submit can vary. But expect to provide at least the following: Personal and business information, Business formation documents, Any organizing or partnership agreements.
Fill Out the Account Application
You may be able to apply online, in person or over the phone to open your business bank account. Online business bank accounts usually offer a quick and easy application process, but may lack any personal touch. Applying in person may take longer, but your business banker can answer questions as you go.
Fund Your Newly Opened Business Account
Most business bank accounts can be opened with $0, but some business checking accounts require an opening deposit, which can range from $25 to $100. Business savings accounts can have higher deposit requirements — anywhere from $1,000 to $25,000, depending on the account — but you can still open many with $0 to start.
Business accounts that can be opened with no money still require you to fund the account within a specific timeframe or it will close the account for inactivity.
Set Up your Business Bank Account
Once your account is open and funded, it’s time to set up your account. Start by downloading your bank’s mobile app and then sign up or log in to the online banking platform. Then, connect your new BA to your business accounting software and any other relevant business tools — many business bank accounts offer direct integration with popular software and apps like QuickBooks, Xero, FreshBooks, Shopify and Gusto.
You can also add authorized users and set appropriate permissions. This may be important based on your business setup. For instance, if you’re opening a business BA for an LLC, multiple members of your organization may need access. You can also set up other alerts, as well as establish recurring payments from your new business account. The main business debit card will ship automatically and typically arrive in seven to 10 business days. If your bank offers these options, you can order checks and request any additional employee debit cards.
Bank of America Business Account
The Bank of America Corporation is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina, with investment banking and auxiliary headquarters in Manhattan. The bank was founded in San Francisco, California.
Access to your Cash
Users can withdraw cash for free at over 16,900 Bank of America ATMs around the country or by visiting one of the 4,300 branches nationwide.
Here are the fees and limits for depositing money (whether your business handles cash, checks or electronic transfers):
Business Advantage Fundamentals Banking
- Cash deposits up to $7,500 per statement cycle are free (then 30 cents per $100)
- Maximum of 200 check deposits/other debits per statement cycle, then 45 cents per item; may vary by state)
- Unlimited free ACH, debit card, electronic debits and check deposits through Remote Deposit Online
Business Advantage Relationship Banking
- Cash deposits up to $20,000 per statement cycle are free (then 30 cents per $100)
- Maximum of 500 check deposits/other debits per statement cycle, then 45 cents per item; may vary by state.
- Unlimited free ACH, debit card, electronic debits and check deposits through Remote Deposit Online
Perks
Bank of America’s business checking accounts come with some tailored tools to help account holders stay on top of their day-to-day responsibilities.
- Mobile banking: Deposit checks, request transfers, pay bills and monitor pending transactions from the palm of your hand with the Bank of America mobile app.
- Account balance alerts: Receive notice when your balance dips too low or there is unusual activity.
- Business debit cards: Track expenses with employee debit cards that let you set spending limits.
- Digital tools: Plan ahead while monitoring your balance, payments and revenue with Cash Flow Monitor.
Additional Business Advantage Relationship Banking perks
- Flexible account access: Share and hide details of accounts with certain employees for different job-related purposes.
- Easy cross-account management: Manage multiple accounts with just one online ID.
- Easy sync with QuickBooks and ADP: Manage invoicing and payroll seamlessly with no-hassle integration.
- Free stop payments and wire transfers: Avoid getting nickel-and-dimed on qualifying payments.
Fees
The Business Fundamentals account has a $16 monthly maintenance fee. The Business Advantage Relationship Banking account is $29.95 per month.
