Running a business often means dealing with complex financial needs. Business bank accounts can be a welcome solution, allowing business owners to manage their finances and access tools.
First, however, you must pick an account. To help you start, let’s explore common types of business accounts, how to choose one and how to navigate the application process.
Choose your bank and account type
Business bank accounts come in many forms, from checking and savings accounts to money market accounts (MMAs) and CDs.
Understanding how these accounts work and what your business requires can help you narrow things down. For example, if you’re looking for an account that can earn interest while keeping funds accessible, a business savings account or MMA might be on your list.
The next consideration is which bank you'll use. Some of the factors you may want to look at include:
- Branch locations
- Introductory offers
- Access to tools
- Minimum opening balances
- Interest rates
- Account fees
Banks can also offer different versions of the same account type, each addressing different business needs.
Let's take Citi's business checking accounts as an example. If you own a growing business with a high monthly transaction volume, you might be interested in CitiBusiness® Flexible Checking. The account can accommodate up to 500 basic transactions per month. Meanwhile, CitiBusiness® Streamlined Checking may be better suited to new and growing small businesses due to the lower monthly payment and transaction limit.
Gather relevant documents
When you apply for a business bank account, you’ll typically need to provide both personal and business documents.
For example, you may need your government-issued ID, like a driver’s license or passport, as well as your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). That may be the case for all applicants.
Your business formation documents will generally also be required. You receive those after registering your business with the state. You may also be able to find them by visiting the Secretary of State website of the state in which your business is registered. Banks may also ask about business details like:
- Business name
- Monthly transaction volume
- Monthly balance estimates
- Number of employees
Apply for a business bank account
Once you’ve decided on an account and gathered your documents, you can apply. The application process for business bank accounts can vary. Depending on the bank or credit union you choose, you will typically need to visit a physical branch location to apply.
Make your initial deposit and start using your account
After opening your business bank account, you can make your first deposit and start using the account. You may need to adhere to certain requirements, like maintaining a minimum balance, to avoid fees. You might also focus on meeting deposit and balance requirements to earn a sign-up bonus. From there, it’s about leveraging your new business account features to help your business handle its finances effectively.
Disclosure: This article is for general educational purposes. It is not intended to provide financial advice. It also is not intended to describe or indicate the availability of any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products.
