This article contains general information and is not intended to provide information that is specific to American Express, or its products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
As the owner of a small business, an important step to take is opening a business bank account. Unfortunately, this may sometimes come with its own hassles. Can business owners get to the bank before it closes? Is someone available to cover for them while they run to the bank?
Applicants can open a business checking account online — from the comfort of their office or home.
Why open a business checking account online?
Small business owners often have a lot on their plate. Opening a business checking account online may save them valuable time.
When opening a bank account online, applicants don’t need to go to the bank or physically collect all necessary documents. They simply enter their information, by either manually inputting the information into the application and/or scanning and uploading their ID and business documents.
Benefits of an online business checking account
A bank that allows business owners to open a small business checking account online may offer other online banking services, including:
- Easy account access: An online-first presence gives account holders 24/7 accessibility to their checking account, which means banking anytime, anywhere. They could check account balances and view transaction records whenever they want, pay bills automatically using electronic bill pay, transfer funds between accounts, and download or print statements for their records.
- Mobile banking services: These could include mobile check and cash deposits, e-statements, and the ability to link accounts to accounting software.
- Security: Online banks commonly use modern security measures to keep their customers’ information safe. Small business owners should look out for security features, such as encryption and fraud monitoring.
- Backed by the FDIC: The Federal Deposit Insurance Corporation (FDIC) offers protection to depositors “against the loss of their insured deposits in the event that an FDIC-insured bank or savings association fails.” Business owners can learn more about whether a business account is insured by the FDIC on the bank’s website.
- Earned rewards: If account holders maintain a certain balance, some banks offer rewards points, which might be converted into direct deposits into their online business checking accounts.
How to open a business checking account online
Opening a business checking account online is easy once applicants pick their bank. They could choose an online-only bank that offers business bank accounts comparable to what they would get from a brick-and-mortar bank. Or they might find a brick-and-mortar bank that allows them to apply online.
Whichever option small business owners choose, they can go online to get started with the application process.
Business checking account requirements
Here are some common documents banks may request when opening a business checking account:
- Personal identification (driver’s license, social security number)
- Basic business information (Employee Identification Number, address, etc.)
- Doing Business As (DBA) certificate or articles of incorporation
- Basic information about the applicant and any additional business owners
- Business size and industry category
Take the next step with an online business checking account
A business checking account could help small business owners manage cash flow, organize finances, and quickly pay vendors. Instead of waiting in line for a teller at a bank branch, they could apply for an online account sometimes within 10 minutes. If approved, they may be able to use their phone, desktop, or mobile device to make deposits, pay bills, and access customer support.
Business checking account FAQs
When can I open a business bank account online?
Anytime. The good news is online banks don’t have set business hours for their application processes. It’s as easy as going to their website and filling out the forms.
What could a small business look for in a business checking account online?
Business accounts will vary across banks, so business owners should be sure to look for the one with the features they care the most about. When evaluating online bank accounts, applicants can look at several factors, including interest rates for savings and checking, transaction fees, early termination fees, minimum account balance fees, and introductory offers.
Online banks may also provide customer support from specialists, integrations with accounting software, and incentives or rewards that can be used as account credits or for travel and other expenses.
Could I open a business bank account without an EIN?
According to the IRS, an Employer Identification Number (EIN), or a Federal Tax Identification Number, “is used to identify a business entity.” Banks will have varying requirements to open a business account, including whether they request a company provide an EIN or not. Be sure to consult an attorney to better understand what legal documentation or requirements your business may need to operate or to apply for any banking products.
The material made available for you on this website is for informational purposes only and is not intended to provide legal, tax or financial advice. If you have questions, please consult your own professional legal, tax and financial advisors.
