Starting a new business or expanding an existing one often brings a flurry of excitement and tasks. Among the most crucial steps is setting up your financial foundation, and that means opening a dedicated business bank account. For many entrepreneurs in the U.S., Bank of America stands out as a popular choice due to its extensive network, diverse offerings, and established reputation.
But where do you even begin with such a significant step? Well, you've come to the right place! This comprehensive guide will walk you through the process of opening a business account with Bank of America, from initial considerations to managing your new account. Let's get started!
A Comprehensive Guide to Opening a Business Account with Bank of America
Step 1: Are You Ready to Bank with Bank of America? Assessing Your Business Needs
Before you even think about gathering documents, let's take a moment to consider your business. This initial reflection will help you choose the right type of account and streamline the entire application process.
Understanding Your Business Structure
Your legal business structure plays a significant role in the documentation required. Are you a:
- Sole Proprietorship? This is the simplest structure, where you and your business are legally one and the same.
- Partnership? Two or more individuals share ownership and responsibility.
- Limited Liability Company (LLC)? Offers personal liability protection while maintaining flexibility.
- Corporation (S-Corp, C-Corp)? A more complex structure that separates the business from its owners.
Projecting Your Financial Activity
Think about how you anticipate your business will operate financially:
- Transaction Volume: How many deposits, withdrawals, and checks do you expect to process monthly? Bank of America offers accounts with varying transaction limits.
- Cash Deposits: Do you handle a lot of cash? Some accounts have limits on free cash deposits before fees apply.
- Online vs. In-Person Banking: Will you primarily manage your account online, or do you prefer visiting a physical branch?
- Additional Services: Do you need merchant services (to accept credit card payments), payroll services, or business credit cards?
Step 2: Gathering Your Arsenal: Essential Documents for Account Opening
This is where the rubber meets the road! Having all your documentation ready before you start the application process will save you a tremendous amount of time and frustration. Bank of America requires specific information and documents to comply with federal regulations and verify your business's legitimacy.
Universal Requirements for All Business Types
Regardless of your business structure, you'll generally need:
- Your Business Legal Name and Address: This should match your official registration documents.
- Business Tax ID Number (EIN): An Employer Identification Number (EIN) issued by the IRS. Sole proprietorships may use their Social Security Number (SSN) as their tax ID, but an EIN is generally recommended for separating business and personal finances.
- Date Business Was Established: The month and year your business officially began operations.
- Country and State of Legal Formation: Your business must be formed in the U.S.
- Country and State of Primary Business Operation: Your business must be operating in the U.S.
- Personal Information for All Owners/Controlling Managers: This includes their Social Security Number (SSN) and Date of Birth (DOB) for everyone with at least 25% ownership and the controlling manager of the business. Foreign individuals will need their passport number and country of issuance, residential address, country of citizenship, and country of residence.
- Government-Issued Photo ID: For the primary applicant and any beneficial owners (typically a driver's license or passport).
- Proof of Residential Address: A utility bill, lease agreement, or other official document.
Specific Documents Based on Business Structure
Beyond the universal requirements, prepare the following based on your business type:
-
Sole Proprietorship:
- Business License (if applicable, sometimes called an Occasional Tax License).
- Doing Business As (DBA) documentation (if you're operating under a name different from your legal name, e.g., "John Doe Designs" when your legal name is John Doe). Note: DBA documents may not be required in certain states like Kansas (KS), New Mexico (NM), and South Carolina (SC) if you're operating under your real name and no business license is required.
-
Partnership:
- Partnership Agreement: This legal document outlines the terms of your partnership.
- Business Name Registration Certificate (if applicable).
- State Certificate of Partnership (if applicable).
-
Limited Liability Company (LLC):
- Articles of Organization: Filed with your state to officially form your LLC.
- LLC Operating Agreement: Outlines the rights and responsibilities of the members.
- Business License (if applicable).
-
Corporation (S-Corp, C-Corp):
- Articles of Incorporation: Filed with your state to officially form your corporation.
- Corporate Bylaws: Internal rules governing the corporation's operations.
- Business License (if applicable).
- Certificate of Good Standing (may be requested).
Step 3: Choosing Your Perfect Fit: Selecting the Right Bank of America Business Account
Bank of America offers a few core business checking accounts designed for different business sizes and transaction volumes. Understanding the features and fees of each is key to making the best choice.
Business Advantage Fundamentals™ Banking
- Ideal for: Smaller businesses with lower transaction volumes and cash deposit needs.
- Monthly Fee: $16.00 (can be waived).
- How to Avoid Monthly Fee:
- Maintain a $5,000 combined average monthly balance.
- Use your Bank of America business debit card for at least $250 in new net qualified purchases each statement cycle.
- Become a member of Preferred Rewards for Business (waives fees for the first 4 checking accounts).
- Transaction Limits: No fee for the first 200 non-electronic transactions (checks paid, other debits, deposited items). Electronic transactions (ACH, debit card transactions, mobile check deposits, ATM deposits) do not count towards this limit.
- Cash Deposit Processing Fee: No fee for the first $7,500 in cash deposited per statement cycle. Then, $0.30 per $100 deposited thereafter.
Business Advantage Relationship Banking®
- Ideal for: Businesses with higher transaction volumes and cash deposit needs, and those looking for more comprehensive services.
- Monthly Fee: $29.95 (can be waived).
- How to Avoid Monthly Fee:
- Maintain a $15,000 combined average monthly balance.
- Become a member of Preferred Rewards for Business (waives fees for the first 4 checking accounts).
- Transaction Limits: No fee for the first 500 non-electronic transactions. Electronic transactions do not count towards this limit.
- Cash Deposit Processing Fee: No fee for the first $20,000 in cash deposited per statement cycle. Then, $0.30 per $100 deposited thereafter.
- Additional Benefits: Often includes no fee for an introductory check package, and can include one extra Business Advantage Relationship Banking account and one Business Advantage Savings account for no additional monthly fee.
Preferred Rewards for Business
This is a loyalty program, not an account type itself, but it significantly impacts your business banking experience. If you maintain a qualifying balance across your Bank of America business deposit accounts and Merrill investment accounts, you can unlock valuable benefits like:
- Waived Monthly Maintenance Fees on eligible checking and savings accounts.
- Bonus Rewards on eligible business credit cards.
- Interest Rate Boosters on Business Advantage Savings accounts.
- Interest Rate Discounts on business credit lines, term loans, and more.
Step 4: Making the Move: The Application Process
Bank of America offers a few convenient ways to open a business account.
Option A: Apply Online
- Convenience: This is often the fastest way to get started. Application decisions can be immediate.
- Process:
- Visit the Bank of America small business banking website.
- Select the business checking account that best suits your needs.
- Click "Apply Online."
- Carefully fill out the online application, providing all the requested business and personal information.
- Upload Required Documents: If Bank of America is unable to verify information automatically, you may be prompted to upload additional documents. You typically have 11 days to submit these supplemental documents.
- Initial Deposit: You can often fund your account during the online application process using a debit card, transferring money from an existing account (if you're an existing customer), or by check.
Option B: Call a Specialist
- Personalized Guidance: If you prefer to speak with someone or have specific questions, you can call Bank of America's dedicated business account opening line.
- Phone Number: 866.543.2808 (Mon–Fri 8 a.m.-10 p.m. ET).
- Process: A Bank of America specialist will guide you through the application and inform you of any required documents.
Option C: Visit a Financial Center
- In-Person Support: For those who prefer face-to-face interaction or need help organizing their documents, visiting a physical branch can be beneficial.
- Process:
- Locate your nearest Bank of America financial center.
- Schedule an appointment if possible, to ensure a business specialist is available.
- Bring all your prepared documents.
- A representative will help you complete the application and make your initial deposit.
Step 5: Post-Application: What to Expect Next
Once you've submitted your application, the waiting game begins – but usually not for long!
Application Review & Approval
- Immediate Decisions: For many online applications, the decision is immediate.
- Additional Documentation: If more information is needed, Bank of America will notify you via email with a list of required documents. Be sure to send these within the specified timeframe (usually 11 days) to avoid your application being declined.
- Funding Your Account: If you haven't already, you'll need to make your initial deposit to fully open the account. The minimum opening deposit for both Business Advantage Fundamentals™ and Relationship Banking is typically $100.
Receiving Your Account Essentials
- Debit Card: You should receive your business debit card within 5-7 business days after your account is open.
- Checks: Your business checks will typically arrive within 7-10 business days.
- Online Banking Access: Once your account is open, you can immediately access Bank of America's Online Banking platform.
Step 6: Managing Your New Business Account
Congratulations! Your business account is open. Now, let's look at how to make the most of it.
Leveraging Online and Mobile Banking
Bank of America offers robust digital tools to help you manage your business finances efficiently:
- Business Advantage 360: A dashboard providing insights into your cash flow.
- Mobile Check Deposit: Deposit checks conveniently from your phone.
- Online Bill Pay and Transfers: Schedule payments and transfer funds.
- Account Alerts: Stay informed about your account activity.
- Integration with Accounting Software: Sync transactions with platforms like QuickBooks Online for easier bookkeeping.
Understanding Fees and Avoiding Them
Familiarize yourself with the Bank of America Business Schedule of Fees. While monthly maintenance fees can often be waived by meeting specific criteria, be aware of other potential charges, such as:
- Excess Transaction Fees: If you exceed your account's free transaction limit.
- Cash Deposit Processing Fees: If you deposit a large volume of cash.
- Out-of-Network ATM Fees: For using ATMs not owned by Bank of America.
- Overdraft Fees: For transactions that overdraw your account (Bank of America has relatively low overdraft fees compared to some banks, typically $10 per item, limited to two per day).
- Wire Transfer Fees: For sending or receiving domestic or international wire transfers.
Separating Business and Personal Finances
This is perhaps the most critical aspect of having a business account. Keeping your business and personal finances separate provides:
- Personal Liability Protection: Especially crucial for LLCs and corporations, it helps shield your personal assets from business liabilities.
- Streamlined Bookkeeping and Tax Preparation: All your business income and expenses are in one place, making accounting and tax filing much simpler and less prone to errors.
- Professionalism: Projects a more credible image to clients, vendors, and potential lenders.
Step 7: Exploring Additional Bank of America Business Services
Bank of America isn't just about checking accounts. Consider exploring their other offerings as your business grows:
Business Savings Accounts
- Business Advantage Savings: A good option for setting aside funds for future investments, taxes, or a rainy day fund.
Business Credit Cards
- Tailored for Businesses: Offers rewards, cash back, or travel benefits on business-related spending. They also help build your business credit history.
Merchant Services
- Accepting Payments: If you need to process credit and debit card payments from customers, Bank of America Merchant Services can help you set up point-of-sale (POS) systems, online payment gateways, and mobile payment solutions.
Business Lending and Lines of Credit
- Funding Growth: As your business expands, you might need capital for inventory, equipment, or expansion. Bank of America offers various lending solutions, including term loans and lines of credit.
10 Related FAQ Questions
How to choose the best Bank of America business account for my small business?
The best account depends on your projected transaction volume, cash deposit needs, and desire for additional services. Business Advantage Fundamentals™ is ideal for lower activity, while Business Advantage Relationship Banking® suits higher volumes and offers more comprehensive features. Consider if you can meet the balance or activity requirements to waive monthly fees.
How to apply for a Bank of America business account online?
Visit the Bank of America small business banking website, select your desired account, and click "Apply Online." You'll need to provide business and personal information, and potentially upload supporting documents. Decisions are often immediate.
How to find the documents needed to open a Bank of America business account?
The specific documents depend on your business structure (Sole Proprietorship, LLC, Corporation, Partnership). Generally, you'll need your EIN, business registration documents, personal ID for owners, and proof of address. Refer to Step 2 of this guide for a detailed list.
How to avoid monthly fees on a Bank of America business checking account?
For Business Advantage Fundamentals™, you can avoid the fee by maintaining a $5,000 average monthly balance, making $250 in qualifying debit card purchases, or being a Preferred Rewards for Business member. For Business Advantage Relationship Banking®, maintain a $15,000 average monthly balance or be a Preferred Rewards for Business member.
How to contact Bank of America for business account inquiries?
You can call their dedicated small business service line at 888.BUSINESS (888.287.4637) for general servicing, or 866.543.2808 for opening a new account. You can also visit a local financial center or use their online banking support.
How to make an initial deposit for a new Bank of America business account?
When applying online, you can often make your initial deposit via debit card, transfer from an existing Bank of America account, or by check. If applying in person, you can deposit cash or a check at the branch.
How to get a debit card for my Bank of America business account?
Your business debit card is typically mailed to you within 5-7 business days after your account is officially opened. You can often get a digital card for immediate use once your account is open.
How to manage my Bank of America business account online?
Once your account is open, enroll in Bank of America's Small Business Online Banking or Business Advantage 360. This allows you to view transactions, pay bills, transfer funds, set up alerts, and access other digital tools.
How to choose between Business Advantage Fundamentals™ and Business Advantage Relationship Banking®?
Fundamentals™ is better for businesses with fewer than 200 non-electronic transactions and less than $7,500 in cash deposits per month. Relationship Banking® is for higher transaction volumes (up to 500 non-electronic) and cash deposits (up to $20,000 free per month), and offers more comprehensive features.
How to get help with specific business needs like merchant services or payroll through Bank of America?
Once you have a business account, you can speak with a Bank of America small business specialist in a financial center or call their business banking customer service line. They can connect you with experts in merchant services, payroll solutions, business lending, and other specialized services.
