Opening your first business bank account is an important step in setting your business up for success. Whether you’re just getting started or ready to separate personal and business finances, understanding how to open your business bank account can help you stay organized and grow with confidence. This guide will walk you through general tips on how to set up your account, including how to open a business bank account online, so you know what to expect before getting started.
1. choose the right business bank account
Not all business bank accounts serve the same purpose. Some bank accounts are best for managing daily expenses, short-term saving, long-term goals or even accepting customer payments. Understanding the purpose and needs of each account type is important in figuring out which one is best for you and your business.
Business Checking Account
A business checking account is typically the foundation of a business’s financial set up. It’s designed for everyday transactions like paying bills, receiving customer payments and managing payroll.
Best for:
- All businesses
- Owners that want separation from personal and business finances
- Managing daily transactions and reoccurring expenses
Even businesses with minimal activity still need a business checking account to operate professionally, keep records organized and simplify taxes.1
Business Savings Account
A business savings account, especially a high-yield business savings account, allows you to earn interest on money your business doesn’t need for daily operations, while still keeping those funds accessible.
Best for:
- Setting aside money for taxes1, emergencies or planned expenses
- Businesses that want flexibility and access to funds
- Owners looking to earn interest without locking up their savings
A business savings account works alongside checking accounts to help manage short-term to long-term goals.
Certificate of Deposit (CD)
A business CD is designed for long-term savings. With this type of account, funds are deposited for a fixed period of time with a guaranteed interest rate, with extremely limited access until the term ends.
Best for:
- Businesses with excess cash they won’t need immediately
- Long-term savings goals with a defined timeline
- Owners looking for predictable, low-risk growth
Unlike a traditional savings account, CDs are the best when you are confident the funds will not need to be accessed during the term.
2. Gather the Required Documentation & Funds
Whether you’re opening a business checking account, savings account or CD, the documentation required is generally the same. Most financial institutions use the same standards regardless of account type. While requirements can vary slightly by institution, the documents below are commonly requested based on your business structure.
Sole Proprietorship
- A Social Security number or Employer Identification Number (EIN)
- Government-issued photo identification
- A business name certificate or DBA, if operating under a name other than your legal name
- A business license, if applicable
Limited Liability Company (LLC)
- Articles of Organization
- LLC Operating Agreement
- EIN
- Business license, if required
- Identification for all owners or authorized signers
Corporation
- Articles of Incorporation
- Corporate bylaws
- EIN
- Authorization or resolution allowing the account to be opened
- Business license
Partnership
- Partnership agreement
- Business name registration certificate, if applicable
- EIN
- Business license
- Identification for each partner or authorized individual
Initial Deposit Requirements
Some businesses checking or savings accounts have no minimum opening deposit, while others can require a small starting balance. Before opening any account, review the deposit thresholds, minimum balance requirements and potential fees to ensure that it aligns with your goals.
3. Apply for Your Business Bank Account
Opening a business checking account is typically a straightforward process, especially with an online bank like Live Oak Bank. The application involves providing basic business details such as your legal business name, EIN or SSN, ownership information and a government-issued ID. With Live Oak, the application can be completed online from start to finish.
Applications can be reviewed within a few business days. If additional verification is needed, approval may take a little longer.
If you’re ready for a streamlined, digital-first experience, competitive features and banking built for businesses, now is a great time to apply. Start your business checking account application with Live Oak today and take one step toward simplifying your financial operations.
Frequently Asked Questions About Opening Business Bank Accounts
How long does it take to get approved for a business bank account?
Approval timelines vary by bank and business type, but many online applications are reviewed within a few business days. If your documentation is complete and no other verification is needed, you can receive approval even sooner. If you’re wondering how long it will take to open a business bank account, choosing a digital-first bank like Live Oak Bank can help streamline the experience.
How much does it cost to open a business bank account?
Many business checking accounts have low, or even no opening costs. Fees depend on the account’s features, such as monthly maintenance fees, minimum balance requirements, or transaction limits.
Why should I open a business bank account?
A business bank account helps keep personal and business finances separate, making accounting and financial reporting much easier. It also adds credibility with customers and suppliers and gives you access to tools designed specifically for business growth, like cash management and payment services.
When should I open a business bank account?
Ideally, you should open a business bank account as soon as you start earning or spending money for your business. Opening an account early helps establish clean financial records from day one and sets your business up for smoother operations as it grows.
1. Live Oak Bank does not provide tax advice.
