The U.S is a great place to do business with a robust economy. If you wish to start a business in the United States, you need to open a business bank account. It is best to separate personal finances and business finances for better accountability and tax payments. In this article, we will take you through the process of opening a bank account in the United States.
What is a Business Bank Account?
A business bank account is a dedicated checking account for business operations. The business bank account deals with business incomes and outflows. With a business bank account, you can make ACH or wire payments and delegate account authority to other parties. You also get cash management tools that make it easy to manage business finances.
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Requirements for Opening a Business Bank Account in the U.S
To open a business bank account in the U.S, you need to present the following documents.
- Passport-sized photos of the director(s)
- Proof of personal address for the director(s)
- Proof of business address
- Certificate of incorporation
- Federal Employer Identification Number (EIN) for tax payments
Types of Business Entities in the U.S
You can open a business bank account for the following corporate entities.
- Sole proprietorship
- Limited Liability Company
Can I Open a Business Bank Account as a Non-Resident?
You can open a business bank account as a non-resident. However, your business must be registered in the U.S. You need to provide a certificate of incorporation and also EIN for tax payments. At least one of the director(s) of the business must be a U.S resident or citizen.
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Can I Open a Business Bank Account while Abroad?
A few banks can allow you to open a business bank account while you are abroad. However, most banks will require you to visit their branch to open a business account. You must also provide proof of personal address and business address.
It is also difficult to open a business bank account online. It is because most banks will require you to present documents personally to their branch.
Best Banks for Business Bank Accounts in the U.S
There are many banks you can use to open a business bank account. We will provide you with a list of the best banks for business.
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Chase is one of the largest banks in the U.S. with vast branches and ATMs across the country. It offers checking accounts. You can get a monthly fee waiver for the checking account if you maintain a monthly minimum balance of $1,500. It also offers online and mobile banking services. You can manage your checking and savings account with a single login. Monthly charges range between $10 and $95.
Bank of America
Bank of America is a large bank in the U.S. It has 4,861 across the U.S and many ATMs. You can get a fees waiver if you make the minimum number of transactions in a month. It has two regular business bank accounts.
Wells Fargo is the third-largest bank in the U.S and it is available in over 30 countries. You can open the platinum business checking account. Customers enjoy the first 500 transactions and $20,000 cash deposits free of charge.
You need a minimum of $25 to open a business bank account. Transactions above 500 attract a $0.50 per transaction.
TransferWise is a mobile banking service that you can use for your business in the U.S. It is the best bank to use if your business is operating in different countries. Unlike most banks that hold funds in one currency, TransferWise Borderless account allows you to hold money in different currencies.
TransferWise offers the best cross border charges. It does not have hidden fees and uses the mid-market rates to ensure that your recipients will receive more money than when you send money using other services.
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Banking Fees and Charges
Most banks do not reveal all the fees on their websites. It is best to talk to a bank representative before opening a business bank account. Ask about requirements and fees. Some of the business bank account charges you can expect include monthly fees, ATM cash withdrawals and international money transfer charges.