Guide

Opening a business bank account: what to bring and what to ask

A separate business account makes record-keeping, taxes and sales tax easier. Here is what to prepare.

What banks commonly ask for

Requirements vary by bank, so call or check the bank's website first. Common items:

• Your formation papers, such as the Articles of Organization for an LLC.
• Your EIN confirmation letter.
• A government-issued photo ID for each owner.
• An operating agreement, if you have one.
• Sometimes, a certificate of good standing from the Illinois Secretary of State, which shows your LLC is active. Ask your bank whether it wants one.
• A certificate for your assumed name, if you operate under a name other than the legal one.
• An opening deposit.

Questions worth asking

• What is the monthly fee, and how do I avoid it?
• Is there a minimum balance?
• Are there limits on deposits or transactions, and fees beyond them?
• Does it work with Stripe, PayPal, eBay and my other payment platforms?
• Can I add a business debit card and an online bill-pay option?
• How do I add or remove an owner or signer later?

Why keep it separate

• It is easier to track income and expenses when business money is in one place.
• If you collect sales tax, you can see exactly how much of the money in the account belongs to the state. See why compliance matters.
• Mixing personal and business money can create problems for an LLC. Ask an attorney how that applies to you.

Safe practice

• Do not share account numbers or online banking passwords with anyone who is helping you with paperwork.
• Open the account directly with the bank, in person or on its own website.

I am not a CPA or an attorney

This page is general information, not legal or tax advice. Rules, fees and forms change, so confirm with the agency. For advice about your situation, talk to a CPA or an attorney.