Yes, companies can open savings accounts, but the process and rules differ from personal accounts

A business can open a savings account at most banks and credit unions. The account belongs to the company as a legal entity, not to any individual owner. The bank treats it differently than a personal account—it requires different paperwork, may have different fee structures, and comes with separate tax reporting requirements.

The type of business structure you have determines what documents the bank will ask for and how the account is taxed. A sole proprietorship uses different paperwork than an LLC or corporation. The bank needs to verify that the person opening the account has authority to do so on behalf of the business.

Key Takeaways

  • Most banks offer business savings accounts, but you will need an Employer Identification Number (EIN) or Social Security Number tied to the business, depending on your structure.
  • The bank will ask for proof of business formation documents—articles of incorporation for a corporation, articles of organization for an LLC, or a DBA filing for a sole proprietorship.
  • A person opening the account must show a government-issued ID and proof they have authority to act on behalf of the business, such as being listed as an owner or officer.
  • Business savings accounts typically have higher minimum balances and different fee schedules than personal accounts, so compare options before choosing a bank.
  • Interest earned in a business savings account is taxed as business income, not personal income, and the bank will issue a 1099-INT form rather than a 1099-SA.

What documents you will need to bring

The bank will ask for proof that the business exists and that you have the right to open an account on its behalf. For a corporation, bring articles of incorporation filed with your state. For an LLC, bring articles of organization. For a sole proprietorship, bring a DBA (Doing Business As) certificate if you registered one, or a business license.

You will also need an Employer Identification Number (EIN), which the IRS issues to most businesses. If your business is a sole proprietorship with no employees, you may be able to use your Social Security Number instead, but many banks prefer an EIN. You can obtain an EIN for free from the IRS website or by phone.

Bring a government-issued photo ID for the person opening the account—a driver's license or passport. The bank will verify your identity and may run a background check. Some banks also ask for a recent business tax return or a letter from the business owner confirming that the person opening the account has authority to do so.

How business savings accounts differ from personal accounts

Business savings accounts often have higher minimum balance requirements than personal accounts. Some banks require $1,000 to $10,000 to open, depending on the bank and account type. Monthly fees are common and may range from $5 to $25 or more if you fall below the minimum balance.

Interest rates on business savings accounts are typically lower than rates on personal high-yield savings accounts, though this varies by bank and market conditions. The account may come with fewer features—some banks limit the number of transfers or withdrawals per month, similar to personal savings accounts under federal rules.

The tax treatment is different. Interest earned is reported as business income on your business tax return, not on your personal return. The bank will send you a 1099-INT form showing the interest earned, which you will report to the IRS as part of your business income.

Which banks offer business savings accounts

Most major banks offer business savings accounts, including Bank of America, Chase, Wells Fargo, and Citibank. Credit unions also offer them, often with lower fees and higher interest rates than large banks. Online banks such as Mercury, Brex, and Lemonade also offer business savings accounts, sometimes with no monthly fees.

The features and requirements vary significantly. Some banks require you to also open a business checking account, while others allow you to open a savings account alone. Some have no minimum balance requirement, while others require several thousand dollars. Compare the monthly fees, minimum balance, interest rate, and any restrictions on transfers before choosing.

If your business is very new or has no credit history, some banks may ask for a personal may provide from the owner—meaning you agree to cover the account if the business cannot. This is more common at smaller banks and credit unions.

What happens if you use a personal account for business money

Using a personal savings account for business deposits is legally possible but creates problems. The IRS may view it as a sign that you are not running a legitimate business, which can trigger an audit. It also blurs the line between personal and business finances, making it harder to prove business expenses if you are audited.

If your business is a corporation or LLC, using a personal account can pierce the liability protection those structures provide. If someone sues the business, a lawyer may argue that you treated the business as an extension of yourself rather than a separate entity, which could expose your personal assets.

Banks may also close a personal account if they discover it is being used for regular business deposits. The account agreement typically prohibits business use, and the bank can freeze or close the account without warning.

Opening the account in person versus online

Most banks allow you to start a business savings account online, but many require you to visit a branch or have a video call with a banker to verify your identity and the business documents. Online banks typically use video verification instead of in-person visits.

The online process usually takes a few days to a week. You upload photos of your business documents and ID, answer questions about the business, and the bank reviews everything. If the bank needs more information, it will contact you by email or phone.

In-person opening is faster if you have all documents ready—you can walk out with the account open the same day. However, you need to visit during business hours and may need an appointment.

Frequently Asked Questions

Do I need an EIN if my business is a sole proprietorship?

Not always. If you are a sole proprietor with no employees, you can use your Social Security Number instead of an EIN. However, many banks prefer an EIN because it separates your personal and business finances. An EIN is free and takes about 15 minutes to obtain from the IRS website.

Can I open a business savings account if my business is not yet registered?

Most banks will not open an account without proof the business exists. You need at least a DBA filing or articles of incorporation. If you have not registered yet, you can do so through your state's Secretary of State office before approaching the bank.

What if I am the only owner—do I still need business documents?

Yes. Even if you are the sole owner, the bank needs proof the business is registered as a separate entity. A sole proprietorship still requires a DBA or business license in most states. An LLC or corporation requires articles of organization or incorporation.

Will opening a business savings account affect my personal credit?

No. Business accounts are reported under the business's EIN, not your Social Security Number. The bank may run a background check, but it does not appear on your personal credit report. However, if you personally may provide the account, the bank may report missed payments to your personal credit file.

Can I transfer money between a business savings account and a personal account?

Yes, you can transfer money between accounts you own. However, the IRS may question large or frequent transfers, especially if they look like personal withdrawals rather than legitimate business distributions. Keep records of why the transfer happened—for example, owner draw, loan repayment, or expense reimbursement.