How to open a business bank account in 4 simple steps

Whether you're running a fledgling Etsy shop or a full-blown operation with employees, your small business should have its own dedicated bank account.

Fortunately, the process isn't too complex as long as you stay organized and get the right documentation in order before beginning the process. CNBC Select walks you through how to open your business bank account in four simple steps.

• Why should you open a business bank account?
• How to open a business bank account step by step
• Bottom line

One of the biggest reasons to have a business bank account is to keep your personal and business expenses separate. If you keep money used for business expenses in your personal bank account, it can expose you to all sorts of tax and liability issues that you want to avoid.

Additionally, having a business bank account can make it easier to qualify for and receive business grants and loans for your business. Many lenders and grant programs require that you be a registered business and have a business bank account in order to receive your funds.

The process of opening a business bank account is a lot like opening a personal one but with a few additional requirements to prove that your business exists.

Step 1: Compare account options and choose one you're comfortable with

There are many business checking account options out there, each with its own requirements and offerings. Focus on the features you care about the most so you can weed out the options that don't suit your needs.

For instance, you may consider a checking account with no monthly maintenance fee so you can save as much of your business's money as possible. Or perhaps you'd like an account that allows you to conveniently deposit checks using your phone.

CNBC Select ranked the Chase Business Complete Banking® account as the best overall business checking account since it has a relatively small monthly maintenance fee of $15 that can be waived if the business meets a daily minimum account balance, and there is no minimum deposit amount to open the account. It also offers a generous account bonus that lets new account holders earn $500 with qualifying activities. Offer expires 10/16/2025.

Novo Business Checking is another solid option that doesn't charge a monthly maintenance fee, doesn't have a minimum monthly balance requirement and has a $0 minimum deposit amount to open the account.

Some other points you may consider include:

• ATM access
• Debit card access
• Debit card access for employees
• Insufficient fund fees and overdraft fees
• Minimum balance requirements
• Accounting software integrations
• Integration with other business tools
• Small business perk offerings
• APY earnings

To read more about some of our other picks, see our article on the best business checking accounts for solo entrepreneurs, small business owners and more.

Step 2: Gather all the necessary documentation

In order to open any new bank account — be it personal or otherwise — you need to provide information like your full legal name, date of birth, address, social security number and identifying documents like your passport or social security card.

To open a business bank account, you'll also likely need the following:

• Employer identification number (EIN) (you'll need to file for one but if you haven't, you can still use your social security number instead)
• Business registration and applicable licenses
• Your company's address and phone number

It's best to gather your information and documents before you begin the application process so you can get through everything as smoothly as possible.

Step 3: Submit your application

Once you've gathered everything you need and settled on the account you'd like to open, it's time to submit all your information. Depending on the account you choose, you may have the option to submit your application online. Otherwise, you'll probably just need to hand over your documentation to a bank representative at an in-person branch.

In either case, double-check that all your information is correct before submitting it — otherwise, you could face a significant delay in opening the account.

Step 4: Open your account and get it integrated with your business

Once you've submitted all your information and your account is open, you can start putting money in it. If your account has a $0 minimum to open, then you don't have to worry about funding your account on day one. If there is a minimum amount required to keep in the account, you may incur fees for not funding the account upon opening.

One of the most important things you can do once your account is open and active is to begin integrating all your business tools with your business checking account. Payment processing tools like Stripe and PayPal are often used by small business owners for customer and client transactions. Some business bank accounts let you seamlessly integrate these tools to make keeping track of business income even easier.

The Bluevine Business Checking account, for instance, allows account holders to connect their Stripe, PayPal and Expensify accounts.

Other integrations that would be helpful include tax software and bookkeeping software. Tool integration may be another feature to consider when deciding which bank account to choose.

The process of opening a business bank account is very similar to that of opening a personal account — you just need a few additional pieces of information about your business. Still, the extra effort can be very well worth it and give you the peace of mind of knowing you're running your business finances more efficiently.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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