Pentagon Federal Credit Union's business checking account

Pentagon Federal Credit Union (PenFed) does offer business checking accounts through its business banking division. The account is called the Business Checking Account, and it is available to sole proprietors, partnerships, corporations, and other business structures that meet PenFed's membership requirements.

To open a business checking account at PenFed, you must first become a member of the credit union. Membership is open to people who work for, or are retired from, the Department of Defense, military service members, veterans, and their families. If you do not fall into one of these categories, you may be able to join through a family member who does, or through certain employer or association memberships.

Once you are a member, you can open the business checking account in person at a PenFed branch, by phone, or online through their website. You will need to provide business documentation such as an Employer Identification Number (EIN), a business license or articles of incorporation, and personal identification for all owners or authorized signers.

Key Takeaways

  • PenFed's Business Checking Account is open to members whose business structure qualifies, including sole proprietors, partnerships, and corporations.
  • You must be a PenFed member first, which requires working for or being retired from the Department of Defense, active military service, veteran status, or family connection to someone in those categories.
  • Business account opening requires an EIN, business formation documents, and identification for all owners or signers on the account.
  • PenFed offers online and mobile banking for business accounts, allowing you to manage transactions and view statements outside of branch hours.

What you need to know about membership first

Before you can open any account at PenFed, including a business checking account, you must meet the credit union's membership requirements. The primary way to join is through military affiliation: active duty service members, retirees, veterans, and their families are all may be able to access. If you work for the Department of Defense as a civilian employee, you are also may be able to access.

If you do not fall into one of these categories directly, you may still join through a family member. Spouses and children of may be able to access members can become members themselves. Some employers and professional associations also have group membership agreements with PenFed, so it is worth checking whether your employer or industry association has a relationship with the credit union.

Membership itself is free, though you will need to open a personal savings account to complete the membership process. Once you are a member in good standing, you can then open the business checking account.

Documents and information you will need to gather

Opening a business checking account requires more paperwork than a personal account because the credit union needs to verify the business structure and confirm who has authority to manage the account. Gather these items before you start the process:

  • Your Employer Identification Number (EIN), issued by the IRS. If your business is a sole proprietorship and you use your Social Security number instead, have that ready.
  • Business formation documents: a copy of your articles of incorporation (for corporations), partnership agreement (for partnerships), or business license (for sole proprietors).
  • Personal identification for all owners and anyone who will be an authorized signer on the account, such as a driver's license or passport.
  • Proof of your business address, such as a lease, utility bill, or property deed.
  • Your membership information if you are already a PenFed member.

If you are opening the account online or by phone, you will upload or provide copies of these documents. If you open in person at a branch, bring the originals along with copies.

How to open the account

PenFed offers three ways to open a business checking account: online through their website, by phone with a representative, or in person at a branch location. The online process is usually the fastest if you have all your documents ready and your membership is already active.

To open online, log into your PenFed member account, navigate to the business banking section, and follow the prompts to explore for a business checking account. You will be asked to upload your business documents and provide information about the business structure, ownership, and authorized signers. The credit union will review your process and contact you if they need additional information.

If you prefer to speak with someone, call PenFed's business banking line or visit a branch in person. A representative can walk you through the requirements, answer questions about fees and features, and help you complete the process on the spot. Processing time varies, but you can typically expect to hear back within a few business days.

Fees and account features

PenFed's Business Checking Account comes with online and mobile banking, allowing you to check balances, transfer funds, and pay bills outside of branch hours. The account includes a debit card for business expenses and the ability to set up multiple authorized signers.

Fees vary depending on the account tier and your membership status. PenFed does not publicly list all business account fees on their main website, so you will need to contact the business banking department directly or review the account disclosure document before opening. Common fees to ask about include monthly maintenance fees, overdraft fees, and fees for additional services like wire transfers or stop payments.

As a credit union member, you may also have access to PenFed's network of shared branches and ATMs, which can reduce out-of-network fees if you travel or need to access your account outside of regular branch hours.

Alternatives if you do not meet membership requirements

If you do not have military affiliation or a family connection to someone who does, you will not be able to open an account at PenFed. In that case, you have other options for business checking accounts.

Many traditional banks offer business checking accounts with similar features: online banking, debit cards, multiple signers, and bill pay. Banks like Chase, Bank of America, and Wells Fargo have business checking products available to any business owner who can provide an EIN and business documentation. Community banks and online banks often have lower fees and simpler requirements than large national banks.

Other credit unions may also serve your area and have different membership requirements. If you are interested in banking with a credit union but do not may have access to for PenFed, search for credit unions in your state or industry using the CO-OP Network locator or your state's credit union league website.

Frequently Asked Questions

Can I open a PenFed business checking account if I am retired from the military?

Yes. Military retirees are may be able to access for PenFed membership, which means you can open a business checking account. You will need to provide proof of your retired status, such as a military ID or discharge papers, when you join.

Do I need a separate business savings account to open a business checking account?

No. You can open a business checking account as your first business account with PenFed. However, you do need to be a member of the credit union, which requires having a personal savings account. That personal account is separate from your business account.

How long does it take to open a business checking account at PenFed?

If you are already a member and explore online with all documents ready, the process usually takes a few business days. If you need to become a member first, add an extra day or two for membership processing. In-person applications at a branch may be completed the same day.

What if my business is a sole proprietorship — do I still need an EIN?

You can use your Social Security number instead of an EIN if your sole proprietorship has no employees. However, many business owners get an EIN anyway because it separates personal and business finances and is required for certain business structures. PenFed will accept either one.

Can multiple people sign checks on a PenFed business checking account?

Yes. You can add multiple authorized signers to your business checking account during the opening process or afterward. Each signer will need to provide identification and sign the account authorization documents.