How to Open a Business Bank Account: Checklist for Founders

Open a business bank account before the first payment comes in. In the US, the SBA says (page checked October 31, 2026): "As soon as you start accepting or spending money as your business, you should open a business bank account." To open one, you'll need your tax ID, your formation documents if you have them, and any ownership agreements and license, then you compare fees and check how the FDIC insures the deposits.

This page is about the account itself. For getting the tax ID first, see how to get an Employer Identification Number (EIN), and for the registration that comes before it, see how to register a business.

Gather the documents

The SBA (US, page checked October 31, 2026) lists these as common documents banks ask for:

• "Employer Identification Number (EIN) (or a Social Security number, if you’re a sole proprietorship)"
• "Your business’s formation documents"
• "Ownership agreements"
• "Business license"

It adds: "Some banks may ask for more." Call the bank before you go, and ask for its list.

Get your EIN from the IRS, not a middleman

An EIN costs nothing from the IRS. Its EIN page (US, last reviewed or updated October 16, 2026) says: "Beware of websites that charge for an EIN. You never have to pay a fee for an EIN." It also says that if your online application is approved, "we’ll issue your EIN immediately online."

Compare the costs

Among the things the SBA (US, page checked October 31, 2026) suggests weighing for a business checking or savings account are "Transaction fees", "Early termination fees" and "Minimum account balance fees". Ask each bank for its fee schedule in writing, then estimate a typical month for your business: how many deposits, payments and transfers you'll make, and the balance you'll keep.

If you'll take card payments, the SBA lists separate costs to compare for a merchant services account, starting with the "Discount rate" and "Transaction fees".

Check how the FDIC insures the deposits

FDIC deposit insurance doesn't treat every business the same way. The FDIC's guide to insured deposits (US, last updated May 14, 2024) says: "All deposits owned by a corporation, partnership, or unincorporated association at the same bank are combined and insured up to $250,000." For sole proprietors, it says: "Accounts held in the name of a sole proprietorship are not insured under this ownership category. Rather, they are insured as the Single Account deposits of the owner, added to the owner's other Single Accounts, if any, at the same bank and the total insured up to $250,000."

Worked example: a sole proprietor's balances at one bank

Sample figures, using the FDIC wording above: a sole proprietor keeps $180,000 in a personal savings account and $95,000 in a checking account in the business's trade name, both at the same insured bank, and has no other single accounts there.

• Both are single accounts of the owner, so they're added together: $180,000 + $95,000 = $275,000
• The FDIC limit quoted above for that total: $250,000
• Amount above the limit: $275,000 − $250,000 = $25,000

Before you move money because of a calculation like this, confirm the coverage with your bank or the FDIC.

Keep business and personal money apart

Pay business costs from the business account and pay yourself by transfer, rather than mixing the two. The SBA (US, page checked October 31, 2026) says: "Business banking offers limited personal liability protection by keeping your business funds separate from your personal funds."

Where Billed fits

Once the account is open, connect the ways your clients pay you. Billed's invoice software page says: "Connect your Stripe account and every invoice you send gets a pay button, so clients can pay by card." For the rest, it says: "When a client pays by check or cash, record it as an offline payment so all your income is in one place."

Common mistakes

• Waiting until tax time to separate business and personal spending.
• Paying a third-party website for an EIN.
• Choosing an account without asking for the fee schedule.
• Assuming every account at one bank is insured separately.

When this guide isn't for you

If your business has two or more owners or holds large balances, ask your bank and an accountant about the account setup and insurance. This page doesn't give legal or financial advice.

Related Articles

• How to Register a Business
• How to Get an Employer Identification Number (EIN)
• How to Choose a Business Structure
• How to Manage Business Finances

Frequently Asked Questions

What paperwork will a bank want for a business account?

The SBA's list of common documents (US, page checked October 31, 2026) is: "Employer Identification Number (EIN) (or a Social Security number, if you’re a sole proprietorship)", "Your business’s formation documents", "Ownership agreements" and "Business license". It adds: "Some banks may ask for more."

Should business money go through my personal account?

The SBA (US, page checked October 31, 2026) says: "As soon as you start accepting or spending money as your business, you should open a business bank account." It adds: "Business banking offers limited personal liability protection by keeping your business funds separate from your personal funds."

Does it cost anything to get an EIN?

Not from the IRS. Its EIN page (US, last reviewed or updated October 16, 2026) says: "You never have to pay a fee for an EIN."

Is a business bank account FDIC insured?

At an FDIC-insured bank, yes, within the limits the FDIC sets for each type of owner. Its guide (US, last updated May 14, 2024) says: "All deposits owned by a corporation, partnership, or unincorporated association at the same bank are combined and insured up to $250,000."