NASE Blogs

Business Bank Account

Oct 23, 2009

Q: Is it necessary for me to have a separate bank account for my business?  If so, what is the process for setting up a business checking account?

A: If your business is a legal entity, such as an LLC or a corporation, or if you operate the business under DBA (doing business as) name, it's absolutely necessary to have a separate business checking account.

If you operate as a sole proprietorship under your own name, a separate business account isn't required. But, it is a good business practice.

The process for opening an account depends on the legal structure of the business.

If you're a sole proprietor operating under your own name, simply open a business checking account using your name and Social Security number.

If you're a sole proprietor or partnership operating under a DBA, you'll need to provide the bank with a copy of your DBA certificate.

For an LLC, provide the bank with a copy of the registered charter you received from the state.

In the case of a corporation, provide the bank with a resolution from the corporation to open the account and a copy of the corporate charter from the state.