Technically, a sole proprietor isn’t required to have another bank account. They can do everything under their personal bank account because there is nothing distinguishing themselves from their business. But it’s considered generally good practice for a sole proprietor to have a business bank account, if only to ensure that they are managing their books correctly.
Because the bank account is still going to be in the company’s name, the individual should have all their relevant business information. That includes their articles of incorporation, business filing documents, and so forth. If the individual is running as a schedule C sole proprietorship without all this information, they should instead bring all their personal information.
A sole proprietorship bank account will operate like a business bank account, and will usually be opened by speaking with a business agent. They can also be opened online in the right scenarios. If the bank allows these accounts to be opened online, the individual will usually have to send in their forms and documentation to the bank through email or upload.
Aside from opening a bank account to keep finances separate, it’s also a good practice to get a Tax ID (EIN) Number.
An EIN can make it easier for the sole proprietor to do things like hire employees and file a Keogh plan. Obtain an EIN for sole proprietorship by clicking the button below.