Before the bank account can be established you will need a name for the new business. You need to decide whether the name of the business is still available within your state or if someone else is currently using that name. Start by contacting the Secretary of State's office, corporations, etc. and test out the name to see if it's being used. Once you know the name is unused, you may then be able to reserve the name when you set up the business. The first decision should be whether in fact you want an LLC or possibly an S corporation. You probably don't want to act as a sole proprietorship as this may leave your personal assets susceptible to creditor claims in the event of a problem. In most cases, the best approach is an LLC in the state in which you want to do business. At this point you reserve the name with the secretary of state's office and determine whether you need to file for a federal tax ID number. If so, you need this number just to open a bank account in the name of the new business and from this point forward, be sure you do everything in the name of the LLC (the business) including having LLC letterhead. It will then be critically important to segregate the business transactions from your personal transactions and not to mix them. So in answer to myour question, you need the name of the business, possibly a tax ID number to be obtained from the federal government thru the IRS office and then you can set up the bank account that you questioned. Good luck
You should start a completely separate bank account for your business. However, you should figure out if you want to form an LLC or corporation first. This way you could open a corporate or LLC account. You should really talk to a tax advisor about the goals of your business.
Craig W Smalley EA
Admitted to Practice Before the Internal Revenue Service
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.