Right now, customer payments land in the same account as your groceries and your kid’s soccer fees. Come tax time, you’re scrolling a year of statements trying to remember which Home Depot runs were for jobs.
A business bank account fixes most of that. It’s one of the easiest wins in running a small business.
This isn’t legal or tax advice. Banks and states have their own rules, so check with your bank and an accountant for your situation.
Why your LLC needs its own account
It keeps the LLC separate. The SBA says business banking offers limited personal liability protection by keeping business funds separate from personal funds. If you formed an LLC to protect your personal stuff, mixing the money works against you.
Taxes get way easier. Every deposit is business income. Every charge is a business expense. Your bookkeeping (or your accountant) will thank you.
You look more professional. Customers can pay “Ridgeline Roofing LLC” instead of writing a check to you personally.
Sole proprietors don’t strictly need a separate account, but it’s the same idea. One account for the business, one for your life.
What you need to open one
The SBA lists the documents banks most often ask for. Your bank may want more, so call ahead.
- EIN (or your Social Security number if you’re a sole proprietor). No EIN yet? It’s free from the IRS.
- Formation documents, like your LLC’s articles of organization.
- Ownership agreements, like your operating agreement.
- Business license, if your state or city requires one.
- Your ID.
If you use a business name that’s different from your legal name, banks often want your DBA registration too.
For a deeper dive: LLC University has a step-by-step guide to opening an LLC bank account, including which IRS letters banks accept as proof of your EIN.
What to compare before you pick a bank
Rates and fees vary a lot from bank to bank. The SBA suggests shopping around and looking at:
- Monthly fees and how to get them waived (minimum balance, number of transactions)
- Transaction limits and what each extra one costs
- Cash deposit limits if customers pay you in cash
- Interest rates on savings
- Early termination fees
- Mobile check deposit and a good app (you’ll use it from the truck)
- Connections to your card reader, payment app, or bookkeeping software
Local banks and credit unions are often easier to talk to. Online banks often have lower fees. Neither is wrong.
How to open the account
- Pick a bank using the list above.
- Gather your documents.
- Apply online or at a branch. Some banks require everyone on the account to show up in person.
- Make your first deposit, if there’s a minimum.
- Switch your payments over. Update your payment apps, card reader, and invoices so money lands in the new account.
- Get a business debit or credit card and use it only for business.
Keep it clean once it’s open
The account only helps if you actually keep things separate. Simple rules that work:
- Business money in, business money out. No groceries on the business card.
- Pay yourself on purpose. Transfer a set amount to your personal account on a schedule. It’s easier to track than random withdrawals.
- Set aside tax money. Many owners move a percentage of each payment to a separate savings account so the tax bill isn’t a surprise. The IRS says if you’re in business for yourself, you generally need to make estimated tax payments. Ask your accountant how much to set aside.
- Snap receipts as you go. Our bookkeeping guide has a simple weekly routine.
Separate your money. Then separate your phone.
The same logic applies to your phone. When business calls and personal calls go to the same number, it’s hard to tell what’s what, and it’s hard to stop work from following you home.
A separate business number gives you a clean line between the two, without carrying a second phone. And just like the bank account, it’s easier to set up early, before your personal number is on every flyer and invoice.
A business line on the phone you already have
GBPN is a business number that rings the cell you already carry, for $30 a month total, taxes and fees included. One flat price, which makes it easy to budget.
- A separate business call history, so customer calls don’t get lost in your personal log.
- Business hours, so after-hours calls go to voicemail.
- We record your greeting for you.
A real person sets it up with you. 30-day money-back guarantee.
See available business numbers
FAQ
Do I need a business bank account for an LLC? It’s strongly recommended. Keeping business and personal money separate helps protect the LLC’s liability shield and makes taxes much easier.
Can I open a business bank account without an EIN? Sole proprietors can often use their Social Security number. LLCs with more than one member, and many banks in general, want an EIN.
Can I use my personal account for my business? As a sole proprietor you legally can, but it makes bookkeeping and taxes harder. For an LLC, mixing money can weaken your liability protection.
What’s the best bank for a small business? It depends on how you get paid. Compare fees, cash deposit limits, and the app. If you handle a lot of cash, a local branch helps.
Should I get a business credit card too? Many owners do. It keeps business spending in one place and can help build business credit. Use it only for business.
Written by the GBPN team
We're a family-owned company that has set up business phone numbers for small businesses since 2017. We write these guides from what we hear from owners every day.
