How to open a business bank account in the US

A business bank account helps keep personal and company finances separate, an essential step for managing taxes, tracking cash flow, and staying compliant. In this guide, we’ll break down how business bank accounts work, what to consider before opening one, and how to get started.

We’ll also explore digital business account alternatives that are transforming how businesses manage their finances, offering faster setup, improved integrations, and lower fees compared to many traditional banks.

What is a business bank account?

In the United States, a business bank account is a financial account specifically designed for business use. A bank or credit union typically provides it and offers features that help companies manage revenue, expenses, payroll, and taxes. Fintech companies also offer business accounts – these aren’t technically bank accounts, but alternatives for businesses looking to scale globally, and enable greater flexibility and efficiency.

Separating personal and business transactions simplifies bookkeeping, supports tax compliance, and builds credibility with customers and vendors. It also provides a more straightforward overview of cash flow, aiding in financial decision-making.

If you operate as a corporation, partnership, or limited liability company (LLC), a separate business account is typically required. Sole proprietors and freelancers may not be legally required to use a business account, but many still choose to do so for organizational and professional purposes.

Do I need a US business bank account?

Most US-registered businesses use a business bank account (or a fintech business account) to manage finances, separate personal and business funds, and ensure proper recordkeeping.

• Sole proprietors: Not legally required to have a separate business account, but it’s strongly recommended for bookkeeping, tax filing, and liability protection.

• LLCs, corporations, and partnerships: Typically required to open a business bank account to comply with tax laws, maintain legal separation between personal and business finances, and preserve limited liability protections.

If you’re unsure of your business structure or requirements, check with the IRS, your state’s business registry, or a qualified tax professional.

What are the benefits of a business bank account?

Opening a business bank account offers more than just compliance. It provides practical advantages that support business growth and efficiency. Some of the main benefits include:

• Clear separation of finances: Keeping personal and business transactions apart simplifies bookkeeping and reduces tax errors.

• Professional credibility: Paying suppliers or receiving client payments through a business account fosters trust and presents your business in a more professional manner.

• Simplified tax filing: With clean records, you can easily track deductible expenses, prepare returns, and minimize the risk of IRS issues.

• Access to financing: Many banks and fintech providers require a business account before offering credit cards, overdrafts, or small business loans.

• Better cash flow management: Higher transaction limits, expense cards for employees, and built-in reporting tools make it easier to manage inflows and outflows.

• Integration with accounting software: Business accounts often connect directly with tools like QuickBooks, Xero, or NetSuite to automate reconciliation and reduce manual work.

These benefits make a business bank account an essential tool for managing money effectively and supporting long-term financial health.

What’s the difference between a business account and a business bank account?

A business bank account is opened with a financial institution that holds a formal banking license. These accounts are governed by banking regulations and are designed to support businesses that require traditional services, such as secure deposits, lending options, and in-branch support.

A business account, in contrast, typically refers to an account provided by a fintech company that operates under alternative financial licenses but not a banking license. These accounts usually offer modern tools for collecting payments, managing expenses, and making international transfers, but without some of the conventional services you’d expect from a bank.

What fintech providers like Airwallex offer is flexibility. You can expect faster onboarding, streamlined international payments, smart integrations with platforms like Xero, and tools that help you manage multiple currencies or issue employee cards – all without needing a bricks-and-mortar bank.

The main difference lies in how these services are built and regulated. Banks still serve many businesses well, especially those that want loans or prefer face-to-face service. However, fintechs are changing the game for companies that want speed, digital-first tools, and global reach without the limitations of legacy systems.

How do I choose the right account for my business?

The range of business accounts offered by both traditional banks and modern fintech providers in the US is vast. These accounts often come with features designed to streamline operations, enhance cash flow, and support business growth, making them a vital tool for long-term success.

Of course, there are costs associated with opening and operating a business account, and those can vary widely depending on the provider and your company’s needs.

Here are some key factors to consider when evaluating your options:

• Account and transaction fees: Compare monthly maintenance fees, transaction limits, and cash deposit fees to find the best option for your needs. For small or online-only businesses, a fee-free or low-cost digital account may offer the best value.

• International payment capabilities and FX fees: If you send or receive payments across borders, look for providers that offer competitive foreign exchange rates, multi-currency support, and low or no international wire fees.

• Access to credit: If you anticipate needing financing, consider whether the account provider offers business credit cards, overdraft protection, or small business loans with favorable terms.

• Digital banking tools and integrations: Ensure the platform is easy to use and integrates with your accounting software (like QuickBooks or Xero). Features like bulk payments, bill pay, and role-based user access can save you time and reduce manual errors.

• Customer support: Verify whether the provider offers live customer support, chat, or dedicated account managers, particularly if you anticipate complex financial operations.

• Branch access (if needed): While many businesses are comfortable with online-only banking, some may prefer or require physical branches for cash handling or in-person service.

Comparing business bank accounts from the ‘Big Four’

If you're starting or growing a business in the US, you’ve likely considered options from the Big Four banks: JPMorgan Chase, Bank of America, Wells Fargo, and Citibank. All four offer established business banking products with solid features, but the right choice often comes down to how you bank, the types of transactions you handle, and the level of flexibility you need.

Here’s a high-level snapshot of what each bank offers as of June 2025. (For the latest info, always check directly with the provider.):

JPMorgan Chase¹

• Business Complete Banking: $15/month (waived with $2,000 balance, QuickAccept deposits, or Chase Ink usage). Includes 20 free in-branch transactions and $5,000 in monthly cash deposits.

• Performance Business Checking: $30/month (waived with $35,000 average balance). 250 free transactions, $20,000 in cash deposits.

• Platinum Business Checking: $95/month (waived with $100,000 average balance). 500 free transactions, $25,000 in deposits.

• Extras: Free Chase ATM use, mobile banking, debit cards, and fee waivers on linked savings accounts.

Bank of America²

• Business Advantage Fundamentals: $16/month (waived with $5,000 combined average monthly balance). Includes access to Business Advantage 360 tools.

• Business Advantage Relationship Banking: $29.95/month (waived with $15,000 combined balance). Offers higher limits and a dedicated relationship manager.

• Extras: Access to CashPro, digital integrations, business credit monitoring, and lending services.

Wells Fargo³

• Initiate Business Checking: $10/month (waived with $500 minimum or $1,000 average balance). Ideal for basic needs and lower transaction volume.

• Navigate Business Checking: $25/month (waived with $10,000 combined balance). More transactions and cash deposits included.

• Optimize Business Checking: $75/month (fees may be offset with earnings credits). Tailored for high-volume businesses.

• Extras: Business Online access, Bill Manager integration, mobile deposits, and advanced user controls.

Citibank⁴ 

• CitiBusiness Streamlined Checking: $15/month (waived with $5,000 average balance). Up to 250 transactions and $10,000 in cash deposits.

• CitiBusiness Flexible Checking: $22/month (waived with $10,000 average balance). Up to 500 transactions and $20,000 in deposits.

• CitiBusiness Interest Checking: $22/month (waived with $10,000 average balance). Includes interest, 25 free transactions.

• CitiBusiness Analyzed Checking: $24/month (can be offset by earnings credits). Designed for high-volume, high-balance businesses.

• Extras: Mobile and online banking, fraud protection, 60,000+ ATMs, and potential account-opening bonuses.

Traditional banks vs. fintechs: Can you have both?

Traditional banks remain a strong choice for many US businesses, especially those that prioritize cash-handling, loans, or in-person service. But for companies operating internationally, dealing in multiple currencies, or seeking automation and speed, fintech platforms like Airwallex offer a compelling complement.

While Airwallex is not a bank, it provides a regulated business account experience with modern features like:

• Fast international transfers

• Virtual and physical multi-currency cards

• Competitive FX rates

• Real-time expense management

• Seamless integrations with tools like Xero, NetSuite, or QuickBooks

US businesses can choose Airwallex for a single-platform solution that delivers Global Accounts, card issuance, FX, and automation tools – without needing to open separate accounts at traditional banks.

Many businesses choose to use both: a traditional bank account for lending and domestic needs, and a fintech account for global payments and spend management.

How to open a business bank account in 5 steps

To open a business bank account, you’ll need to go through a financial institution with a US banking license, typically a traditional bank or an online bank that meets federal and state regulations.

1. Research providers: Compare options based on your business’s needs, such as fees, online banking tools, international payment features, integrations with accounting platforms, and the level of customer support.

2. Gather documentation: For sole proprietors, this typically includes a Social Security Number (SSN) or Employer Identification Number (EIN), as well as a government-issued photo ID. Corporations, LLCs, and partnerships will also need formation documents, an EIN, and information about owners or authorized signers. Some businesses may need a business license or a partnership agreement.

3. Choose your application method: Depending on your provider, you can apply online, over the phone, or in person at a local branch. Some traditional banks still require in-person applications for certain business types.

4. Submit your documents: Upload or provide the necessary paperwork and respond to any additional verification requests from the provider.

5. Activate and set up: Once approved, deposit funds, order debit or credit cards, set up user access, and connect your account to software tools like QuickBooks or Xero so you can start transacting.

Airwallex allows completely online, paperless onboarding – no branches, minimal paperwork – often enabling account activation and use within the same business day in the US.

Summary: Opening a business bank account in the US involves selecting a licensed provider (such as a traditional bank or fintech), gathering the necessary documents, completing the application, and activating your account. Many fintechs, like Airwallex, offer fully online onboarding with minimal paperwork – sometimes enabling same-day activation.

What do I need to open a business bank account?

For US business owners, opening a business bank account is a straightforward process, though the exact requirements may vary slightly depending on the provider. You’ll typically need to provide business registration details and information about your business structure and industry to help match you with the right account type.

Here’s a document checklist for each business structure:

For corporations or LLCs:

• Business formation documents (e.g., Articles of Incorporation or Organization)

• EIN issued by the IRS

• Name and address of the business

• State of formation and state of operation

• Date the business was established

• Government-issued photo ID, SSN, date of birth, and address of the business owner or authorized signer

For sole proprietors or freelancers:

• SSN or EIN (if applicable)

• Valid government-issued photo ID

• Business license or DBA certificate (if operating under a trade name)

• Proof of business address (e.g., utility bill or lease)

For partnerships or trusts:

• Partnership agreement or trust documentation

• EIN for the business

• Government-issued ID and personal details (SSN, DOB, address) for all partners or trustees

In most cases, US banks will accept a valid driver’s license, passport, or state-issued ID as proof of identity. Proof of address may also be required.

The application process is generally quick once you’ve submitted all relevant documents, but verification checks can extend the timeline. You may be asked to provide additional documentation depending on the complexity of your business.

Many providers, including fintechs and some traditional banks, now offer fully digital account opening, allowing you to upload your documents and complete the process online.

5 things to consider before opening a business bank account

1. Fees and charges

Carefully review the fee structure of any prospective business account you are considering. Look for monthly maintenance fees, transaction limits, and overage charges, as well as incoming and outgoing wire fees, and other potential costs, such as early account closure fees or cash deposit fees. Understanding these fees helps ensure you’re not caught off guard – and helps you choose an account that aligns with your transaction habits.

2. Interest rates and account perks

Some business savings or checking accounts offer interest on your balance – though this is more common with savings or “interest checking” accounts. Depending on your average balance, this can provide modest returns. Additionally, review any business perks, such as discounts on software subscriptions, lower loan rates, or cash back on business card spending. These benefits can provide added value beyond day-to-day banking.

3. Digital capabilities

Look for an intuitive online dashboard, a mobile app with full functionality, and integrations with accounting platforms like QuickBooks or Xero. Consider whether the platform supports features such as bill pay, bulk payments, expense tracking, and user permissions tailored to your team's needs.

4. Customer support

Responsive support can make a big difference, especially when you're dealing with payment issues, fraud alerts, or compliance questions. Evaluate whether the provider offers live support (phone or chat), email help, or dedicated relationship managers for business clients. Strong support is especially important for businesses with complex financial operations or international exposure.

5. Scalability

The account should support your growth, not just your current needs. As your business expands, you may need higher transaction limits, access to credit or treasury services, multi-user access, or global payment capabilities. Choose a provider that offers flexibility to upgrade your account or add services as your needs evolve.

Which business accounts work best for going global?

If your business operates across borders or plans to expand into new markets, some business accounts will make managing international transactions far easier than others.

Traditional business bank accounts can support basic international transfers, but they often come with higher fees, slower settlement times, and limited currency support. That can create unnecessary friction as your business grows.

Airwallex offers a modern alternative to traditional business banking. Its global financial infrastructure is purpose-built to help US businesses simplify domestic and international payments, reduce foreign exchange costs, and operate globally from a single platform.

Airwallex is not a bank but operates under regulatory licenses in the US and globally to offer financial services for businesses.

That’s why businesses of all sizes are choosing Airwallex to manage their finances. With one account, you can access:

• Multi-currency Global Accounts with local bank details in 20+ currencies

• Low FX rates and high-speed international transfers

• Company and employee cards for spend control and expense tracking

• Integrated expense management and online payment tools

If your business works with international suppliers or plans to enter new markets, Airwallex gives you the flexibility to send, receive, and hold funds globally, without the overhead of setting up accounts in multiple countries.

Opening a business bank account in the US: Frequently Asked Questions

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

Processing times vary depending on the provider and your business structure. Traditional banks may require in-person applications and take several days to review and verify documents. Digital-first fintech providers can often approve and activate your business account within 1–2 business days, especially if you apply online and have all your documents ready.

Do start-ups need a business account?

While there’s no federal law requiring all startups to have a separate business account, LLCs, corporations, and partnerships are generally expected to maintain a dedicated business account for legal, tax, and compliance purposes. Sole proprietors aren’t legally required to have one, but doing so helps separate personal and business finances, streamlines accounting, and presents a more professional image – particularly important when working with vendors, investors, or clients.

What is the main purpose of opening a bank account?

The primary reason is to separate business and personal finances, which facilitates tax reporting, cash flow management, and mitigates legal liability. A business account also offers features such as payroll, vendor payments, business credit cards, and simplified expense tracking.

Are there any benefits to a business bank account?

Yes, many. A business account can help you:

• Track income and expenses more easily

• Simplify tax prep and reporting

• Pay employees and vendors reliably

• Access financial tools like invoicing, transaction reporting, and accounting software integrations

• Establish business credit and potentially access loans or lines of credit

What is the best bank to use to open a business account in the US?

It depends on your needs. The Big Four US banks – JPMorgan Chase, Bank of America, Wells Fargo, and Citibank – offer robust business banking services with strong in-branch networks. However, if you’re looking for faster setup, fewer fees, or enhanced global capabilities (such as multi-currency accounts or international payments), fintech providers like Airwallex offer a modern alternative.

Which platforms offer integrated business banking services?

In the US, Airwallex offers business accounts designed for digital-first and globally oriented companies. It provides Global Accounts that allow US-based businesses to open local USD account details to receive payments as if from a domestic bank, and a Multi-Currency Wallet to hold, convert, and send funds in over 20 currencies from a single dashboard.

Which business accounts support fast onboarding?

In the US, fintech accounts like Airwallex can approve and activate fully online applications within 1–2 business days, often letting businesses begin transacting within minutes of verification.

Which business account is easiest to open remotely for a foreign company?

Yes, but it can be complex. Most banks require your company to be registered in the United States, typically through a state business registration and a US Employer Identification Number (EIN). You’ll also need to provide business documents and identification for company owners. Some fintech platforms, like Airwallex, may offer local USD accounts without requiring a complete US entity, depending on your use case and region, making it easier to receive and send payments in the US without setting up a traditional US business.

What documents are needed to open a business account?

To open a business account in the US, you typically need to provide your business registration documents, Employer Identification Number (EIN), valid government-issued ID for the business owners, and proof of business address. Additional verification documents may be requested during the onboarding process.

Sources

1. https://www.chase.com/business/banking/checking

2. https://business.bofa.com/en-us/content/business-banking/solutions.html 

3. https://www.wellsfargo.com/biz/checking

4. https://www.citi.com/small-business/banking/checking-accounts

Disclaimer: The information in this article is based on our own online research. Airwallex was not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed annually. If you would like to request an update, feel free to contact us at [email protected].