<aside> What’s this about? Your organization needs a business bank account in order to send and receive payments, and to qualify for various applications and registries. Your choice of bank will, however, depend on your requirements.

What do I need to do? Determine your requirements for a banking partner e.g. how important are international payments, associated conversion rates, and foreign exchange (FX) fees? Once your criteria are clear, set up a business account with a suitable bank.

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Why you need a business bank account

A business bank account is a separate account that is used exclusively for “business” transactions.

You need a business bank account in order to:

• Separate personal and business finances: This will help you track your organization’s income and expenses more accurately and simplify tax reporting.
• Enable automation: Many accounting software providers allow for bank accounts to interface with their product, bringing bank activity into the accounting software automatically and thus easing the burden on you.
• Provide legal protection: A business bank account can help protect your personal assets in case of legal issues or bankruptcy. It shows that your organization is a separate legal entity from yourself and can help shield your personal finances from business liabilities (and vice versa).
• Establish credibility: It shows that you are serious about your organization and that you are committed to keeping accurate financial records.
• Increase purchasing power: Business banking usually comes with the option for a line of credit for the company. This can be used in the event of an emergency, or if your organization needs new equipment. And credit card accounts can help your nonprofit make large startup purchases and help establish a credit history for your organization.

Choosing a provider

Your choice of bank will depend on your requirements.

Do you need a high-interest savings account? How important are international payments and the associated conversion rates and FX fees? Do you need to accept cheques?

Think carefully about how important each of these are to your organization right now, and how important they may be in the future.

Shop around and compare different banks' fees and services. Look for a bank that offers the features you need, such as online banking, mobile banking or overdraft protection. You may also want to consider working with a bank that specializes in small business banking.

For a list of recommended US banks, see our database.

• International transfers
• Ease of use and transparency
• Bulk payments
• Savings and interest
• Integrations
• Physical branches
• Payments to specific countries

Application process

You can open a business bank account once you Obtain your EIN.

You’ll typically need the following details to apply:

• Organization information
• Governing documents
• Personal details of trustees

There may be additional requirements, such as an initial deposit, banking history information, or personal financial information.

Traditional high street banks often have weeks-long processing times for setting up an account. Consider initially registering an account with a virtual bank like Wise, which is suitable for entities in almost any location.

We recommend setting up two bank accounts — especially if your primary bank is Wise. It’s rare, though not unheard of, to have a Wise account frozen or closed. Wise isn’t insured (under FDIC in the US or FCSC in the UK), so it's best to hold a minimum operating amount in Wise (which allows for ease of transacting), but hold reserve amounts in an insured bank.

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