What You Need to Open a DBA Bank Account

Why do you need a bank account for a DBA?

There are many reasons why you might want to keep your personal finances and business finances separate. 

For starters, keeping a separate bank account for your business expenses can make filing taxes for your business much simpler. All of your business expenses will be separated from your personal account, which can make it much easier to track business expenses and itemize your deductions. This separation can also be a benefit when it comes to general record-keeping for your business.

It may also help your business appear more legitimate in the eyes of vendors and financial institutions since it allows you to have your business name on checks, debit, and credit cards. Having this separate documentation may also help you if you plan to apply for a business loan or grant.

Finally, keeping your personal and business funds separate may also afford you some legal protection in the event that your business is involved in a lawsuit. If you operate your business as a limited liability company (LLC), corporation, or partnership, having a separate business checking account can protect your personal assets in the event of a legal dispute.

Documents needed to open a DBA bank account

To open any type of business bank account, you generally need to provide some sort of personal and business identification to start. Other documents you may need depend on the type of business. Here are some documents you may need to provide to your bank.

DBA certificate

A DBA certificate (also called a fictitious name certificate) verifies that your business is operating under a fictitious name, and banks will require some sort of evidence that you are operating a legitimate business before allowing you to open a business bank account. If you operate as a sole proprietorship and you live in a state that doesn’t require a business license, your DBA registration might be one of the only forms of identification you have to prove your business’s legitimacy in the eyes of your bank.

Social Security card or employer identification number (EIN)

Every business must have a tax identification number for federal income tax purposes. For sole proprietorships, this number may be the business owner's personal Social Security number, which should be presented to open a DBA bank account.

Partnerships, limited liability companies, and other business structures are required to have an employer identification number (EIN) to conduct business and must provide proof of that EIN to open a DBA bank account. Note that sole proprietorships may also choose to use an EIN instead of a personal Social Security number to operate a business, in which case they would need to provide the EIN to the bank in order to open a DBA account.

Business license

If your business requires a license within your jurisdiction, bring this documentation to the bank when you open a DBA account. The license should include both your name and the name of the business.

Partnership agreement, articles of organization, or articles of incorporation

If you are opening an account on behalf of a partnership, bring the partnership agreement with you. The partnership agreement can help the bank verify the owners behind the DBA.

For LLCs, you will need to bring the company's articles of organization. All of the LLC's officers should be listed in the articles, and if they are not, you should bring additional documentation called a “corporate resolution," which includes the names of all officers and is signed by them.

If you have a corporation comprised of more than one company—perhaps two separate types of businesses within the larger corporate structure—you should bring the corporation's articles of incorporation with you to open a DBA bank account.

For a nonprofit, bring the articles of incorporation and a certificate of nonprofit status. Additionally, just as with an LLC, if the documents provided don't list all of the company's officers, you should provide a corporate resolution that includes them.

Steps to open a DBA business bank account

Opening a DBA bank account shouldn't take long if you come prepared with all of the documents required. To ensure it goes as smoothly as possible, contact your banking institution before going in person, or complete the process online if available.

Step 1: Register your DBA

Each state may have different requirements to register a DBA, but the general process should be similar. You’ll likely want to begin by doing a business name search to make sure your desired business name is available. From there, you’ll need to register with the county clerk’s office. 

It’s important to note that some states might require your business to operate under its fictitious name for a period of time before you can register. Check with your local government office to see if this applies to your specific situation.

If you’re new to the concept of DBAs, LegalZoom’s DBA registration service can help take the guesswork out of the process. They’ll help you file your DBA online and cover any filing fees related to your application.

Step 2: Collect necessary documents

Using the checklist above, collect the necessary documents you will need to open your business bank account. The exact documents required may vary from bank to bank, so it can be helpful to contact a bank representative ahead of time to see what they require. Generally speaking, you will need to provide official documents that show your legal name and your DBA name, at the very least.

Step 3: Choose the right bank

It can be a good idea to research different banks and their business account offerings before you open your account. While it can feel convenient to simply open a business bank account at a bank where you already have a personal account, you may find that other banks have more desirable perks like sign-up bonuses or more competitive interest rates. Make sure you shop around and consider things such as minimum account balances, fees, and perks before you decide on a bank.

Step 4: Open the account

In many cases, you may be able to open a business bank account online. But if this is your first business account, or you have questions about the account you’re opening, it can be a good idea to apply in person and speak to a bank representative during the process.

Tips for managing your DBA checking account

Once you’ve opened your business bank account, you’ll want to make sure you’re managing it properly. Managing a business account isn’t so different from keeping tabs on your personal bank account, though you may want to be even stricter in your bookkeeping to ensure your accounts are accurate and your business remains in good standing. 

Here are a few tips for managing your business account.

• Maintain accurate records: When you’re running a business, it’s imperative that every transaction is recorded accurately. Keep a close eye on your withdrawals, payments, and deposits, and be sure to keep any non-business related expenses to your personal bank account.
• Understand bank fees: Unnecessary fees ultimately hurt your business’s bottom line. Make sure you understand what you’ll pay if you fail to maintain a minimum balance in your account or accidentally overdraft and avoid these types of fees if at all possible.
• Regularly review account statements: Mistakes happen, but regularly reviewing your business account statements gives you the opportunity to correct any transaction errors early. You may want to set up time to review your account monthly, or even more often.

DBA bank account FAQs

Can I open a business bank account without a DBA?

If you are a sole proprietor and you’re doing business under your legal name, then you usually do not need to register a DBA to open a business bank account. In that case, many banks may ask you for another form of documentation, such as a business license, before they allow you to open the account. However, some states also don’t require a business license. In that instance, it can be a good idea to speak to a bank representative to understand what sort of documentation is required.

Do I need an EIN for my DBA checking account?

Most businesses need an EIN (employer identification number) to open a business bank account. However, the IRS does not require sole proprietors to apply for an EIN. Instead, the U.S. Small Business Administration notes that sole proprietors can usually use their social security numbers to apply for a business account.

Can I open a DBA checking account online?

Many banks allow you to apply online when opening a business account. However, if you have questions about your documentation, or questions about your account, it may be helpful to speak with a banker in person when you’re ready to apply.

Which banks offer DBA accounts?

Many banks offer business bank accounts for many different business types, including partnerships, LLCs, and sole proprietorships. With so many options available, it’s important to do adequate research about your account options so you can be sure you’re choosing the right business account for your company.