How to Open a Small Business Bank Account

What to Look for in Your Business Bank Account

Understand which type of account will work best for you before you open an account. If you’re wondering what to look for in a bank for small business, one that offers a variety of accounts is a good place to start. You’ll also want an account with little to no fees.

If you’re looking for a business checking account, Axos Bank provides Basic Business Checking and Business Interest Checking. It’s important to note that your business may benefit from having multiple business bank accounts rather than just one.

There are multiple types of business bank accounts, including:

• Checking

• Savings

• Certificate of Deposit

• Money Market

• Merchant Services

Choose an Account With Little to No Fees

Don’t forget about fees. Many banks charge fees that can impede the growth of your business. You may even be charged for incoming wires by some banks, and those fees usually range between $15 to $20 per incoming wire transfer.

Those incoming wire transfer fees can add up quickly and eat into your profits. You keep a lot more of your money by choosing a business bank account that does not charge fees.

For example, all domestic incoming wires are free with Basic Business Checking from Axos Bank. And those aren’t the only fees to consider – Basic Business Checking also includes no item processing fees, no monthly maintenance fees, and no initial deposit or minimum balance requirements.

When you choose an account with little to no fees, your business can maximize its growth.

Benefits of a Small Business Bank Account

Having a business bank account that is separate from your personal bank account is beneficial for many reasons.

Professionalism

Your employees can handle banking transactions on behalf of your business. You can also process credit and debit cards for your customers, and they can write checks to your business instead of directly to you.

Security

Keeping your business funds separate from your personal funds gives you limited personal liability protection. Merchant services protect the personal information of your customers on credit and debit card purchases.

Financial emergencies

In the case of unforeseen expenses or emergencies, or if your business needs new equipment, a business bank account can provide a line of credit as a financial safety net.

Establishing credit

When you make substantial startup purchases with your business account, you build credit history for your business and increase your purchasing power.

What You Need to Open a Small Business Bank Account

You can open a small business bank account entirely online if you use a digital bank like Axos Bank. To complete the process, most banks require the following information and documents:

• Employer Identification Number (EIN)

• Social Security number (if you’re a sole proprietor)

• Ownership agreements

• Business license

• Articles of incorporation/organization

These requirements can differ depending on the type of business: an LLC, a sole proprietorship, a partnership, or a corporation. At Axos Bank, all you need is a copy of the primary ID for all authorized signers and business owners plus external bank account information for faster funding (where applicable).

You’ll likely be asked for personal information as well, including photo ID, personal email, phone number, mailing address, and date of birth.

More Potential for Your Small Business

Now that you know what to look for, you can dive in and open an account. Having a business bank account – or multiple ones – can make things easier for you and provide your customers with a better experience.

For your business to reach its full potential, choose a business bank account without costly fees that can drag you down. This gives your business the freedom to maximize growth because you keep more of your revenue to put back into your business.

Ready to get started? Axos Bank has a wide variety of checking, savings, and other accounts to help take your business to the next level.