Opening a Business Bank Account in the U.S.

Key takeaways

• A U.S. business bank account keeps your business money separate from your personal money, making bookkeeping, taxes, and legal protection much easier.¹

• If you’re a non-U.S. founder, you can usually still open a U.S. business account—but you’ll need a U.S. entity and extra documentation, and online-first providers can make this easier.³

• Your U.S. business bank account is your domestic base. For paying suppliers, staff, or platforms abroad—or getting paid in other currencies—pairing it with a specialist like Xe can make cross-border money simpler and more cost-effective.

Why a business bank account matters

If you’re just starting out, it’s tempting to use your personal account “for now” and fix it later. But opening a separate business account early saves you a lot of cleanup work down the road.

A dedicated business account helps you:

See the real picture: It’s much easier to understand whether your business is actually profitable when personal grocery runs aren’t mixed in with client payments.

Stay sane at tax time: Clean separation means faster bookkeeping and fewer “what was this charge?” moments six months later.¹

Protect yourself: If you run an LLC or corporation, mixing personal and business money can weaken your liability protection.

Look professional: Getting paid into a business account (and paying suppliers from one) sends a different signal than “Jane Doe – Personal Checking.”

In short: as soon as your business starts accepting or spending money, it’s a good time to open a business bank account.¹

1. What you’ll need before you apply

Different banks, similar checklist. The exact list will vary, but most will ask for some version of the items below.

Your business structure

You’ll usually need your business properly set up as a:

• Sole proprietorship

• LLC

• Corporation (C-corp or S-corp)

• Partnership

Your structure tells the bank which paperwork to expect—for example, articles of organization for an LLC, or articles of incorporation for a corporation.²

EIN (Employer Identification Number)

An EIN is a tax ID for your business.

• For most businesses, banks expect an EIN, even if you don’t have employees.

• Sole proprietors can sometimes use a Social Security number, but an EIN still keeps things cleaner and more professional.¹

The good news: applying for an EIN with the IRS is free and usually quick.

Formation and ownership documents

Here’s the kind of paperwork banks often ask for:²

Formation documents: Articles of organization (LLC), articles of incorporation (corp), or partnership agreement.

Business name registration: If you trade under a different name (a “Doing Business As” or DBA).

Operating agreement or bylaws: How the business is run and who owns what.

Business licenses: If your industry or location requires them.

You may also need a government-issued photo ID (passport, driver’s licence, or national ID) for each owner or authorized signer.

Beneficial owners (the people behind the business)

Because of anti-money-laundering rules, banks need to know who really owns or controls the business—often anyone with 25% or more ownership or significant control.

You’ll usually be asked to list these individuals and provide their ID. Recent changes in U.S. law have relaxed some separate government-level reporting for many domestic companies, but foreign-owned entities can still have additional reporting obligations, so it’s worth checking current guidance or speaking with a professional if you’re unsure.⁴

2. Step-by-step: how to open a U.S. business bank account

Once your paperwork is in good shape, the process is fairly straightforward.

Step 1: Decide what kind of provider you want

You’ll usually be choosing between:

• Traditional banks: Big names with branches, full-service offerings, and in-person support.

• Online-first banks and fintechs: App-driven, often faster onboarding and lower or simpler fees.

• Credit unions and community banks: More local focus, sometimes more flexible with smaller businesses.

Think about how you’ll actually use the account: do you deposit cash? Do you care about branch access? Or is everything online anyway?¹

Step 2: Compare fees and features

Instead of just picking the bank you already use personally, compare:

• Monthly fees (and how to avoid them)

• Transaction limits (how many payments or deposits are “free”)

• Domestic and international wire fees

• The quality of online banking and the mobile app

Regulators have been cracking down on surprise “junk fees” on bank accounts, so banks are under more pressure to be transparent—but fee structures can still be confusing.⁵

Step 3: Gather and upload your documents

Before you click “apply,” make sure you have digital copies (PDF or clear photos) of:

• Your EIN letter

• Formation documents

• Operating agreement / bylaws (where applicable)

• Personal ID for owners/signers

Many banks provide a simple checklist; following it can save a lot of back-and-forth.²

Step 4: Apply online or in person

Depending on the provider:

• Some let you apply fully online and verify documents digitally.

• Others ask you to start online and then come in with your ID for final approval.

• A few still require an in-person visit from the start—common if your ownership structure is complex.

You’ll answer basic questions about what you do, where your customers are, and roughly how much money will be moving through the account.

Step 5: Fund the account and set up your tools

Once approved:

• Make your first deposit (sometimes there’s a small minimum).

• Set up online banking, user logins, alerts, and your mobile app.

• Order debit cards and, if you still use them, checks.

From that point on, try to run all business income and expenses through this account. That clear separation is what makes the whole exercise worth it.

3. If you’re a non-U.S. founder

If you live outside the U.S. but have (or want) a U.S. company, a U.S. business bank account can be hugely helpful for getting paid in USD, paying U.S. expenses, and integrating with U.S. platforms.³

A few things to expect:

• You’ll almost always need a

  U.S. entity

  (for example, a Delaware LLC).

• Banks will run extra checks on your identity and ownership.

• Some traditional banks still require you to

  visit a branch

  in person.

However, some online-first banks and fintech platforms now support remote onboarding for non-resident founders with properly set-up U.S. entities, as long as compliance checks are satisfied. Guides aimed at global founders often recommend getting your entity and EIN in place first, then approaching banks and fintechs that explicitly support non-resident owners.³

4. Types of business accounts you’ll see

You don’t need every product on day one. Most businesses start simple and add more as they grow.¹

Business checking
This is your everyday account: incoming payments, bill payments, transfers, and card spending. It’s usually the first thing you’ll open.

Business savings or money market
A place to park reserves—like tax money, emergency funds, or cash you’ll need in a few months. Often earns some interest and sits alongside your checking account.

Merchant services / payment processing
If you accept card payments, you’ll either connect your bank account to a payment processor (like an online checkout platform) or use the bank’s card processing service.

Credit products
As you grow, your bank may offer a business credit card or line of credit. Used carefully, these can help smooth cash flow and separate business spending.

5. Common pitfalls to avoid

A few simple habits now can save big headaches later.

Mixing personal and business transactions
Try not to pay personal bills from your business account or vice versa. It complicates taxes and can blur legal lines if your business is meant to be separate from you.

Ignoring the fee small print
Extra transaction fees, minimum balance charges, and wire fees can quietly eat into your margins. Take an hour to read your bank’s fee schedule and adjust how you use the account if needed.⁵

Having only one person on the account
If you’re unavailable or something unexpected happens, your business might be stuck. Consider adding a trusted co-owner or finance lead as an additional signer.

Not updating your bank when things change
If you change address, add owners, or restructure your company, let your bank know. It can prevent frozen accounts or compliance surprises later.

FAQ

Do I really need a business bank account if I’m small or just freelancing?

If you’re earning money regularly, a separate account is strongly worth it. It keeps your records cleaner, makes tax filing easier, and helps you see how your business is really performing—even if you’re a one-person operation.¹

Do I need an EIN to open a business account?

Most banks will ask for an EIN, even if you don’t have employees yet. Sole proprietors sometimes can use a Social Security number, but an EIN is simple to get and keeps your personal details off a lot of paperwork.

How long does it take to open a business account?

If your documents are ready and your structure is straightforward, some online applications can be approved within a few days. More complex cases—especially with multiple or non-U.S. owners—can take longer while the bank runs its checks.³

Can I open a U.S. business account as a non-resident?

Yes, in many cases. You’ll usually need a U.S. entity, an EIN, and solid ID documents. Some banks will require you to visit in person, while some online-first providers allow remote onboarding for verified non-resident owners.³

What if I also need to pay people abroad?

Your U.S. business bank account is great for dollars and domestic payments. For paying suppliers, freelancers, or staff in other countries (or receiving money in other currencies), it often makes sense to use a dedicated cross-border payments provider like Xe alongside your bank.

How Xe helps once your U.S. business account is open

Your U.S. business bank account handles the domestic side of your finances. Xe can help when your business goes global.

Pay international suppliers directly from your U.S. account
Link your U.S. business bank account and use Xe to send money to suppliers, partners, or platforms in 100+ countries, often with clearer pricing than traditional bank wires.

Manage multiple currencies alongside your USD
If you regularly work with customers or vendors in other countries, Xe’s business solutions let you manage foreign currency exposure and reduce the need for constant ad-hoc conversions.

Automate regular overseas payments
For recurring bills—like monthly retainers, software, or services abroad—you can use Xe to set up scheduled payments so your outgoing transfers run on autopilot.

Connect global payments to your systems
If you run your finances through an ERP or platform, Xe’s Payments API lets you build cross-border payments into your existing workflows instead of managing them separately.

Pay global teams and contractors in their local currencies
Growing internationally? Xe can help you send bulk or individual payments to employees and contractors in multiple countries while you keep clean records in your U.S. books.

Citations

¹ U.S. Small Business Administration — Why and when to open a business bank account, and common business account types

² U.S. banks and banking guides — Typical document requirements and checklists to open a business account (EIN, formation documents, ID)

³ Cross-border founder resources — Guidance for non-U.S. owners opening U.S. business bank accounts and typical requirements

⁴ FinCEN and related commentary — Recent changes narrowing beneficial ownership information (BOI) reporting requirements for domestic companies

⁵ Consumer Financial Protection Bureau and supervisory materials — Guidance and analysis of “junk fees” and transparency on deposit accounts

Information from these sources was taken on December 2, 2025.

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Disclaimer:
The content within this blog post is for informational purposes only and is not intended to constitute financial, legal, or tax advice. All figures and data are based on publicly available sources at the time of writing and are subject to change. Actual conditions may vary depending on location, timing, and personal circumstances. We recommend consulting official government resources or a licensed professional for the most up-to-date and personalized guidance.