Becoming an independent contractor: Get a business checking…

First published in 2017; updated November 2026.

This guide is written for independent contractors in the US.

Once your business is set up (sole proprietor, LLC or corporation), the next step will be in finding a place to put any income related to the business.

For that, you will need to create a business checking account.

This can be done at your current banking establishment or another of your choice. Most banks have accounts that differentiate between personal and business. Those differences vary from interest accumulated to a minimum balance required in the account. Make sure you do your research on this. You may find your current bank doesn’t have the right business account for your needs, and that is okay.

Once you have found your bank of choice, you need to make sure you have the following items:

Your EIN (or your SSN if you are a sole proprietor)
Your formation documents, if you formed an LLC or corporation
You may also need a piece of snail mail to verify your address.

Some banks may require more and some may require less depending on the type of account and even your relationship with the bank.

Once you have your business bank account set up, you can start depositing funds into it. Use the account and routing numbers on your new business account for any contracting work you do.

This is general information, not tax, legal or financial advice. Talk with your bank or a tax professional about your own situation.

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