Company bank account and other steps

Once the company has been formed and the EIN obtained, the next steps are opening a bank account, setting up the tax payment system, and, if you will hire employees, fulfilling employer obligations. On this page, you will find the documents the bank will request, what people living outside the United States can provide for identification, deposit insurance, the forms completed when hiring employees, and new-hire reporting. For the earlier formation steps, see 14.2 Formation steps and 14.3 EIN.

• According to the SBA, you should open a business account when you start receiving or spending money on behalf of the company.
• The account can be opened after receiving the federal EIN.
• Benefits listed by the SBA:
  • Protection: separates company money from your personal money; this contributes to limited-liability protection.
  • Professionalism: customers can pay by card and write checks to the company. You can give employees authority for routine banking.
  • Preparation: the possibility of obtaining a line of credit for the company.
  • Purchasing power: a company credit card helps build the company's credit history.
• Common account types: checking, savings, credit card, and merchant services accounts for accepting card payments.

• According to the SBA, the documents banks most commonly request are:
  • EIN (an SSN may also be used for a sole proprietorship)
  • the company's formation documents
  • ownership agreements (such as an operating agreement)
  • business license
• Some banks require additional documents.
• Florida: under the state's instructions, most banks require the names of the people managing the LLC to be listed in the state record.
• Delaware: according to the state, some financial institutions require a certificate of good standing or a certified copy of the formation document. A short-form certificate of good standing costs $50.
• Identification (federal rule): banks obtain an identification number from everyone opening an account. For a non-U.S. person, one or more of the following is sufficient:
  • taxpayer identification number (TIN)
  • passport number and the country that issued the passport
  • alien identification card number
  • the number of another official document with a photograph that shows nationality or residence, and the issuing country
• Beneficial owners (CDD rule): when opening a company account, banks identify and verify the identity of every person who owns 25% or more of the company and one person who controls the company. This rule is separate from the BOI report filed with FinCEN.

• The SBA notes that fees and interest rates vary from bank to bank and recommends comparing them.
• Things to look for in checking and savings accounts:
  • introductory offers
  • deposit and line-of-credit interest rates
  • transaction fees
  • early account-closure fee
  • minimum-balance fee
• Things to look for in a merchant account: percentage per transaction (discount rate), card transaction fee, address verification (AVS) fee, daily ACH fee, and monthly minimum transaction fee.
• Payment processors are an alternative. However, according to the SBA, they still need to be linked to a business checking account to receive payments.
• Deposit insurance (FDIC): at every FDIC-insured bank, your deposits are automatically insured for at least $250,000. The insurance covers deposits only at FDIC-insured banks.
• Check that the bank is legitimate and FDIC-insured using the FDIC's BankFind tool. The FDIC warns about fake bank websites, applications, and messages.

• According to the IRS, you can use the EIN for tax deposits and electronic payments as soon as you receive it.
• EFTPS (Electronic Federal Tax Payment System) can be used to make federal tax deposits. Information about expedited enrollment for new businesses is in Publication 4275.
• Use the IRS online tax calendar for the payment schedule.

1. Form I-9: verify the identity and employment authorization of everyone you hire in the United States, including citizens. Both the employee and employer complete the form.
   • The current version is dated 01/20/25.
   • The version dated 08/01/23 may be used until the expiration date of 05/31/2027 shown on it.
2. SSN: obtain each employee's name and SSN; they are entered on Form W-2. The rule also applies to resident and nonresident alien employees.
   • An ITIN is not accepted instead of an SSN. An ITIN is a nine-digit number beginning with "9" and does not show employment authorization.
3. Form W-4: obtain a signed W-4 from every employee when they start work. Income tax withholding is calculated according to this form. If an employee does not provide a W-4, withholding is made as if the employee were single.
4. New-hire reporting: report new and rehired employees to the state where they work within 20 days after they start work. Some states require a shorter period.
5. Payroll taxes: file Form 941 quarterly for income tax withholding, Social Security, and Medicare taxes, and Form 940 annually for federal unemployment tax. At year-end, send the employee a W-2 and the Social Security Administration a W-3.
6. Insurance: according to the SBA, every business with employees should have workers' compensation insurance, unemployment insurance, and disability insurance. Some states require additional insurance; rules vary by state.
7. Payments to independent contractors: these payments are reported on Form 1099-NEC. Forms can be submitted electronically through the IRS's IRIS system.
8. E-Verify: this is the federal verification system used by employers. See e-verify.gov for registration and rules.
9. For tax obligations, see 15.3 Tax returns and 15.4 State income tax.

• According to the SBA, an LLC or corporation structure protects your personal assets, but this protection has limits. Insurance fills this gap.
• Common insurance types listed by the SBA:
  • general liability insurance (for every business)
  • product liability insurance (manufacturers, wholesalers, retailers)
  • professional liability insurance (service providers)
  • commercial property insurance
  • additional policy for a home-based business
  • business owner's policy
• When purchasing insurance: assess the risks, find a licensed agent, and compare several quotes.
• Licenses and permits expire. Renew them before they expire.

• Keeping company money in a personal account.
• Depositing money without checking whether the bank is FDIC-insured.
• Accepting an ITIN instead of an employee's SSN.
• Filling out Form I-9 incompletely or not filling it out at all.
• Failing to report a new hire to the state within 20 days.
• Having problems at a Florida bank because the names of LLC managers were not entered in the state record.
• Confusing the bank's beneficial-owner form with FinCEN's BOI report and purchasing a paid “BOI service.”

• I do not live in the United States. Can I open the company account with my passport? Federal rules allow non-U.S. persons to be identified by their passport number and the country that issued the passport. Whether the account can be opened remotely is the bank's own policy. Ask the bank directly.
• Is an ITIN required to open an account? The federal identification rule does not require an ITIN; a passport may also be accepted. Banks may request additional documents. For ITIN information, see 15.2 Taxpayer identification number: SSN or ITIN.
• The bank is asking me for information about the company's owners. Is this a BOI report to FinCEN? No. The bank's identification of owners holding 25% or more and the person controlling the company when opening an account is a separate rule (CDD). BOI reporting to FinCEN is no longer required for companies formed in the United States as of 2026.
• How much of my money is insured? At every FDIC-insured bank, deposits are automatically insured up to at least $250,000.
• Can I pay myself a salary from the company? Receiving a salary means working in the United States and requires employment authorization. Check your status first (see 14.1).

• SBA – Open a business bank account
• FDIC – BankFind (bank verification)
• EFTPS – Federal tax payment system
• Publication 4275, New business enrollment in EFTPS (PDF)
• Form I-9 (PDF)
• E-Verify – Employers
• Form W-4 (PDF)
• Publication 15 (Circular E), Employer's Tax Guide (PDF)
• Form 941 (PDF)
• Form 940 (PDF)
• ACF – New-hire reporting
• SBA – State revenue department lookup
• IRS – Tax calendar