Setting up a Business Bank Account and Business Credit Card

The Small Business Startup Guide

Before you enter into any business transactions, such as accepting payments, or purchasing inventory and supplies, you’ll want to set up a bank account for your business. A business bank account will help you keep track of your spending and revenue, as well as help you stay legally compliant. It also helps add legitimacy to your business which is important when dealing with customers.

Setting up a Business Bank Account and Business Credit Card

Business accounts often include one or more of the following account services:

  • Checking account
  • Savings account
  • Credit card account
  • Merchant services account (if you plan to accept credit and debit card transactions from your customers)

Having a business bank account may also help you secure a line of credit for your business from the institution that you are working with.

Most major banks offer business banking services in one form or another. Don’t automatically assume that setting up a business account with your current personal bank is going to serve as your best option. Shop around, and make sure you have a complete understanding of any and all fees that you will be charged.

Keep in mind that if you need to process payments with your business, you can always look into services like Stripe, QuickBooks, Square, or Payment Depot.

To open a business bank account, you will generally need an Employer Identification Number (EIN) or social security number if you are operating as a sole proprietor (your EIN is also your Federal Tax ID). You may also need any ownership agreements that you have in place (if applicable), your business license, and your business formation documents.