Open a Business Bank Account: When, Why and What You Need, per the SBA
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How we wrote this: A plain-English summary of the U.S. Small Business Administration's business guide on opening a business bank account, checked October 29, 2026.
When to open one
The SBA says to open a business account as soon as you start accepting or spending money as your business. You can open one once you have your federal EIN (how to get an EIN). A DBA plus an EIN also lets you bank under a trade name (registering a DBA).
Common account types
- Checking
- Savings
- Credit card
- Merchant services, which lets you accept credit and debit card payments.
Why it helps
The SBA lists four benefits:
- Protection: keeping business money separate from personal funds gives limited personal liability protection. Merchant services also add purchase protection and data security for customers.
- Professionalism: customers can pay by card or write checks to the business, and you can authorize employees to handle day-to-day banking.
- Preparedness: business banking often comes with access to a line of credit for emergencies or equipment.
- Purchasing power: a business credit card can fund start-up purchases and help build business credit.
Shopping for an account
Rates, fees and options vary by bank, so compare them. Some owners use the bank that holds their personal accounts.
A separate account also makes bookkeeping and taxes simpler; see cash vs. accrual accounting and how long to keep records.