How do I open a business bank account, and do I need one?

If you're earning self-employment income you should open one, even as a sole proprietor — it keeps your finances clean and makes tax time far easier. To open a business checking account you typically need an EIN (free from the IRS, recommended even for sole proprietors to avoid using your SSN), your business name or DBA registration if you use one, and personal ID. LLCs and corporations also bring formation documents. Shop on monthly fees, minimum balance requirements, transaction limits, and whether the bank integrates with your bookkeeping software. Online business banks often waive fees and minimums, while a local bank can help if you need cash deposits or a relationship for future lending. Route every dollar of business income and expense through this account. Pair it with a separate business credit card to complete the separation.