Three Documents You Need to Open a Business Bank Account

Curious how to open a business bank account? I’ve got you covered.

To open an account, most banks require these three documents (along with personal identification like your ID). Also remember that using a business bank account can help you avoid personal liability for your company’s debts and liabilities.

Business Formation Documents

To create an LLC, Corporation, or Non-profit Corporation, you must file formation documents with your state’s Secretary of State. The names vary by state, but the purpose is the same. In Colorado, Missouri, and Kansas, for example:

• LLCs file Articles of Organization
• Corporations and Non-profits file Articles of Incorporation

A copy of your formation document is typically required to prove your business was legally created. Learn where to incorporate your business.

Employer Identification Number (EIN)

Your Employer Identification Number (EIN) is assigned by the IRS and acts as your business’s unique identifier. Despite the name, you need an EIN even if you don’t have employees. It’s used for tax filings, banking, and government registrations.

Some banks may require a physical copy of your EIN letter. You can obtain an EIN from the IRS website, but you might consider having an accountant or business attorney obtain it for you to ensure it is created correctly.

Learn more about business taxes.

Bylaws or Operating Agreement

Many banks require governing documents for your business:

• LLCs need an Operating Agreement
• Corporations and Non-profits need Bylaws

These documents outline how your business is managed, including voting rights, ownership, and decision-making. Banks may also ask for a resolution from the company’s owners or directors confirming that you’re authorized to open an account on behalf of the business.

While you can draft these documents yourself, working with a startup or small business attorney helps ensure everything is set up correctly.

Bonus Tip: Choose the Right Bank for Your Business

Not all banks offer the same services for small businesses. Consider factors like:

• Online banking tools and mobile app quality
• Minimum deposit requirements
• Fee structures

Choose a bank that fits your business needs, especially if you rely on digital tools to manage finances on the go. And if you need to set up payroll, I recommend Gusto. You can use my referral link when ready to save some cash: pixellaw.com/gusto.

*This article is general in nature and is not legal advice.