How to open a business bank account in US

Key takeaways

• Nearly 60% of US small and medium-sized businesses plan to expand in 2026¹ with more than 5 million new businesses opening in 2025. 

• Opening a business bank account requires selecting an account type, comparing providers, and gathering documentation, such as your formation documents, Employer Identification Number (EIN), and government-issued photo ID.

• Airwallex offers a free business account with flexible tools to help you take control of your finances. The application process is fully online and only takes a few minutes to complete.

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. 

In this guide, we’ll cover how to open a business bank account in more detail, along with how business bank accounts work and why they’re beneficial to your business.

What is a business bank account?

A business bank account is a financial account that offers features designed to help companies manage revenue, expenses, payroll, and taxes. Business bank accounts are primarily offered by traditional banks, although fintech companies like Airwallex also offer business accounts with similar capabilities. 

While not technically bank accounts, fintech business accounts offer powerful business features such as multi-currency support, payment solutions, expense management, and more.

In the US, if you operate a corporation, partnership, or limited liability company (LLC), you’re typically required in practice to have a business account that’s separate from your personal finances. Sole proprietors and freelancers don’t face that legal requirement, but many choose to have a business account for organizational and professional purposes.

Pros of opening a business bank account

• 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 stability.

• 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 to top accounting tools like QuickBooks, Xero, or NetSuite to automate reconciliation and reduce manual work.

Cons of opening a business bank account

• Fees and minimum balances: Some business bank accounts charge high monthly fees or have strict minimum balance requirements that place a burden on your business.

• Increased account management: A business bank account is an additional financial account you have to manage, which can be overwhelming for some sole proprietors.

• Documentation requirements: You’ll need more documentation to open a business bank account than you would to open a personal bank account. Gathering the documents and going through the application process takes time.

How to open a business bank account in 5 steps

Opening a business bank account is straightforward and only takes a few minutes in most cases. Here’s a complete guide on how to open a business bank account in 5 easy steps.

1. Choose your account type

There are several types of business bank accounts to choose from, each with its own benefits and drawbacks. Knowing how to choose a business bank account can help you find the options that best fit your business needs.. Common account types include:

• Business checking account: A business checking account is the most popular type of business account. It enables you to hold, send, and receive funds, making it suitable for day-to-day payments and operating cash storage.

• Business savings account: A business savings account lets you earn interest on your funds. However, you typically can’t receive external payments into these accounts or make payments using your balance, so it’s only suitable for funds you don’t need to access right away.

• Money market account (MMA): A money market account combines features of checking and savings accounts. Balances typically earn interest, and you can make a limited number of payments from your account each month, making it more suitable for operational funds than a traditional business savings account.

• Merchant account: A merchant account is a specialized account that lets your business accept credit and debit card payments. Funds from these accounts typically must be transferred to a business checking account before you can use them.

• Multi-currency account: A multi-currency account, like Airwallex, enables you to hold balances in multiple currencies, such as USD, EUR, GBP, and more. It’s ideal for businesses with international customers or suppliers, since you can pay and get paid without forced currency conversions.

Other notable, but less commonly used, business account types include Certificates of Deposit (CDs) and cash management accounts (CMAs). CDs offer higher interest rates on savings, but require locking up your funds for a set period. CMAs combine features of checking, savings, and investment accounts and are typically offered by brokerage firms. To help you weigh these options against the more traditional routes, we’ve curated a list of the business bank accounts that break down the pros and cons of every account type.

• Best business bank accounts

• Business accounts for LLCs

• Business accounts for e-commerce

• Business accounts for international businesses

• Online business accounts

• Business accounts for small businesses

2. Compare and select a provider

There’s a vast range of business accounts offered by traditional banks and modern fintechs, creating a lot of choice for business owners. Here are some of the key factors to consider when choosing the best business bank account for your needs.

• Account and transaction fees: Compare monthly maintenance fees, transaction limits, and cash deposit fees. Traditional banks like Chase Bank can charge account fees up to $95 per month³. For small or online-only businesses, a fee-free or low-cost digital account may offer the best value.

• Minimum deposit and balance requirements: Some traditional banks require a large minimum deposit to open a business account and require that you maintain a minimum balance after that. This stipulation can place a financial burden on your business, but the good news is that fintechs like Airwallex don’t require minimum deposits or balances.  

• 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.

• 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.

Learn more about how to compare the best business accounts in the US.

3. Gather the necessary information and documentation

Opening a US business bank account is typically easy, though the requirements vary by provider. 

What do I need to open a business bank account?

Here’s a checklist of documents for each business structure.

For corporations or LLCs:

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

• EIN issued by the IRS

• Business name and address 

• State of formation and state of operation

• Date the business was established

• Government-issued photo ID, Social Security number (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 Doing Business As (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

• Business EIN

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

Online vs. offline requirements

The main difference between online and offline requirements for applying for  a business bank account is that online applications require uploading photos or scans of your documents. When applying in person at a bank, you must bring original documents, and your banker will create copies of them for you. Besides this difference, the document requirements are typically the same. 

4. Formally apply

Once you’ve chosen an account provider and collected the necessary documents, you're ready to apply. Here’s how to complete the business account application process.

• 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.

• Fill out the application: Complete the online application or answer your banker’s questions for a phone or in-person application. You’ll need to provide your name, personal details, and basic information about your business, such as its name and address.

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

• Wait for approval: Traditional banks take several days to review and verify documents and may require you to visit a branch. Digital-first fintech providers can often approve and activate your business account within 1–2 business days.

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

5. Fund, activate, and set up your business bank account

Once your application is approved, you can start using your account. Here’s how to set up a business bank account:

• Make a deposit: Fund your new account with a cash or check deposit or an online transfer. Make sure you meet your provider’s minimum deposit requirement if they have one.

• Configure your online portal: Set up your online bank account. Select a username and a strong password if you didn’t do this during the application process. This is also a good time to enable two-factor or biometric authentication to further secure your account and to download your provider’s mobile banking app.

• Order debit or credit cards: If you need debit or credit cards for your business, you can order those through your online account portal. Many accounts let you order cards for employees and include tools to help you track business expenses.

• Connect software tools: Link your business account to accounting tools such as QuickBooks or Xero to automate income and expense tracking. You can also integrate your account with any eCommerce platforms, HR tools, or productivity software your business uses.

• Add authorized users: If you want to give employees access to your business bank account, you can add them as authorized users. Most providers support customizable permissions to limit what actions authorized users can take within your account.

Opening a business bank account in the US: Frequently asked questions

What is 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.

Can I open a bank account with an EIN only?

No, you cannot open a business account with just an EIN. You’ll also need to provide your Social Security number (SSN), a government-issued photo ID, your business’s registration documents, and proof of your business’s address. 

Do you need an LLC before opening a business bank account?

No, you’re not required to form an LLC before opening a business bank account. Sole proprietors and freelancers can open a business bank account as long as they have a registered business. Some banks require an Employer Identification Number (EIN), but you don’t need an LLC to get an EIN.

Is it hard to get approved for a business bank account?

It’s typically very easy to get approved for a business bank account as long as you can provide the required documentation. Some traditional banks require you to visit a branch and apply in person, but many banks and fintechs offer a fully online application process. At Airwallex, the online application only takes minutes, and you can get approved for a business account the same day.

Which bank is the best for opening a business account?

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, fintech providers like Airwallex offer a modern alternative.

What is the best bank to set up a small business account?

The best traditional bank for small businesses is Chase Bank because it offers multiple account options and only requires a $2,000 minimum balance to get the account fee waived³. Airwallex offers the best fintech business account for small businesses with no minimum deposit, no monthly fee, and outstanding support for international payments.

What is the best bank account for an LLC?

The best bank account for an LLC is Wells Fargo because its Initiate Business Checking account only requires a $25 minimum deposit, has more than 4,000 branches, and will waive the $10 monthly service fee with a $500 minimum balance⁴. LLCs should also consider Airwallex, which offers a free business account with support for 20+ currencies, corporate debit cards, and a wide range of accounting software integrations.

Sources

• https://newsroom.bankofamerica.com/content/newsroom/press-releases/2025/11/bofa-report--74--of-small-and-mid-sized-business-owners-expect-r.html 

• https://www.commerceinstitute.com/new-businesses-started-every-year/ 

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

• https://www.wellsfargo.com/biz/checking/initiate/ 

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].