Opening a bank account is one of the first financial activities for any business owner, and it is an essential step to position your business for success from the start.
Having a business banking account enables a company to track its finances, from cash balances to payables and receivables. It is also a sound financial practice to ensure personal transactions are not commingled with business transactions.
Business banking accounts also allow you to conveniently manage day-to-day finances and earn interest on funds as your company grows.
Just as importantly, opening a business bank account begins your relationship with a banking partner. As a trusted source of advice, the right business banking partner can answer your questions, extend the benefit of their expertise and help anticipate your business’ needs.
Opening a business bank account is not difficult, but the process is different from opening a personal account. You will need to gather specific materials, including several documents about your business, to open one. Being prepared can help ensure the process of opening your business bank account is as quick, smooth and timely as possible, so read on to familiarize yourself with the process.
Getting started: Before you open a business bank account
Opening a business bank account starts with research. You may have several business bank account options available to you, and you’ll need to learn more about each to decide which one fits your needs.
Some of the business bank accounts you’re likely to encounter include:
Business checking accounts
A business checking account allows you to accept deposits and manage day-to-day transactions. At First Republic Bank, we offer a range of business checking accounts to meet your business’ unique needs. These include:
- Business Analyzed Checking Accounts: These accounts reward you for maintaining a high balance, providing you with an earnings allowance to offset fees or pay for services. At First Republic, both your business and personal account balances count towards the calculation of earnings allowance for your Business Analyzed Checking account. Contact your First Republic banker for more information.
- Simplified Business Checking Accounts: A basic account designed to support businesses with low transaction volumes. As your company’s needs change over time, these can be converted to Business Analyzed Checking accounts.
- Business Interest Checking Accounts: This option allows you to write checks and earn a variable interest rate on the balance maintained from the same account.
Business money market accounts
Business money market accounts may be an ideal option to store idle funds for your business. While these accounts allow limited transactions, which makes them less suited for day-to-day transactions, they offer tiered interest rates. The more you save, the greater the interest rate you’ll earn.
At First Republic Bank, we offer business money market accounts to help companies of all sizes grow funds they don’t need to access regularly. A Certificate of Deposit (CD) account may also be an option to consider, for earning interest on funds you don’t intend to use for a set period of time; talk to your First Republic banker to learn more.
Finding the right business banking partner
Your business banking needs are unique, and you should seek out a partner who can help mix and match the services and accounts to best support your business.
With Business Banking, you’ll have a dedicated point of contact to answer your questions and ensure your needs are met, whether you need to open your first business checking account or need more complex or specialized services.
Requirements to open a business bank account
Opening a business bank account requires gathering certain documents, regardless of the type of account you choose.
In general, these are the documents needed to open a business banking account:
- Employer Identification Number (EIN)
- Business formation documents
- Ownership agreements
- Business license or business name filing paperwork (this may be articles of organization for a limited liability company or articles of incorporation for a Corporation, Nonprofit or B-Corporation)
- Personal identification, such as a driver’s license or state-issued identification, for yourself and each person you plan to add as an authorized signer on the account
Different banking partners may have different documentation requirements to open an account, so check with your prospective banking partner to understand their specific requirements.
Do you need original documents to open a business bank account?
While some banks require original documents, others may accept certified copies of business documents, instead. These copies, issued and certified by the state, are recognized as “true” copies of the original documents.
Next steps: You’re ready to open a business bank account
Once you research your business banking account options, evaluate potential banking partners and gather the required documents, you are ready to open your business banking account with these three simple steps:
1. Contact the bank
Get in touch to express your interest in opening a business bank account, or to ask questions about which accounts may be best suited to your needs. At First Republic, you have three options:
- Give us a call at (888) 408-0288
- Have us contact you by phone or email
- Find an office near you to visit in-person
2. Fill out the new account checklist
Complete the new account checklist by providing the information and documentation required by your banking partner.
3. Deposit funds into your account
Some business bank accounts require a minimum opening balance, depending on the financial institution. Once funds are added, you can start using your business banking account.
At First Republic, clients have the flexibility of making deposits online or in-person; our corporate online banking services are designed so that you can securely access your accounts from your smartphone, tablet or desktop, 24 hours a day, seven days a week.
For additional peace of mind, First Republic offers clients a complimentary Internet Security Health Check from our Information Security team.
If you’d like to connect with a trusted advisor at First Republic to discuss your business banking needs, we’re here to help. Contact us to learn more about how we can support your company’s growth.