What You Need to Open a Business Bank Account

When starting a business, we know you have a lot on your plate. One of the first things you should consider is opening a business banking account so that you can keep track of your finances. If you’re unsure if it’s necessary to keep your finances separate, read a previous blog on this topic: Reasons to Keep Personal and Business Finances Separate. Also, if you still need to decide which business entity is right for you, take a look at our Types of Business Entities blog.

When you’re ready to open your business account, banks will need specific paperwork to verify the business entity information and the individuals added to the account. At Coastal, we request certain business documents to confirm that your business is registered with a government agency, such as the Washington State Department of Revenue or the Secretary of State.

Each document we request must be completely filled out to be accepted. For example, your Business License will need to have the date of formation and the expiration date. Another thing we look for is that your documents say who the business owners are and what their powers are. These are typically outlined in the business operating agreements. Individuals with more than 25% ownership must also be listed appropriately, certifying their ownership.

Below are the common business account types we open at Coastal and the documents we’ll ask you for before opening the account(s).

Sole Proprietorship

• Business License
• SSN (Social Security Number) or EIN (Employer Identification Number)

Limited Liability Company (LLC)

• Business License
• EIN (Employer Identification Number)
  • Tax Classification (if known)
• LLC / Operating Agreement (if applicable)
• Corporation Resolution and or By-Laws (if applicable)

Corporation

• Business License
• EIN (Employer Identification Number)
  • Tax Classification (if known)
• Operating Agreement (if applicable)
• Corporation Resolution and or By-Laws (if applicable)

Partnerships

• Business License
• EIN (Employer Identification Number)
  • Tax Classification (if known)
• Partnership Agreement (if applicable)

Clubs, Associations, and Groups

• Business License
• EIN (Employer Identification Number)
  • Tax Classification (if known)
• Entity Documents & Meeting Minutes (Naming who is on the account and their authorities)

If you’re ready to take the next step with your business, contact a Coastal Banker today to set up a time to talk. You can also view our Business Resource Portal for more local business resources.