📅 2026 Update: Changes Impacting Business Checking Accounts

Since the original article was published, several important changes have taken place that affect business checking accounts. These updates include new requirements for accounting methods and CPA licensure in certain states. The earlier article continues further down the page, providing additional context on business checking accounts and related topics.

📊 Changes in Accounting Methods

For tax year 2026, C corporations, partnerships with a C corporation as a partner, and tax shelters with average annual gross receipts exceeding $32 million must use the accrual method for federal tax purposes. This change means businesses will record income when earned and expenses when incurred, regardless of cash movements.

🏢 CPA Licensure in Minnesota

Starting January 1, 2026, Minnesota is providing multiple pathways to obtain CPA licensure. This flexibility could help business owners more easily find qualified accountants for their financial needs.

💰 Business Formation Costs

Filing fees for forming a business entity, like an LLC or corporation, vary by state and generally range from $50 to $300. Understanding these costs is essential when starting a business and setting up a checking account.

📄 Necessary Forms for Employers

Most businesses need an Employer Identification Number (EIN) to identify themselves for tax purposes. Employers should also ensure all employees complete Form I-9 and Form W-4 for employment verification and tax withholding.

📌 Key Points to Remember

  • C corporations and partnerships with high gross receipts must use the accrual method starting in 2026.
  • Minnesota offers new pathways for CPA licensure effective January 2026.
  • Business formation filing fees range from $50 to $300 depending on the state.
  • An EIN is essential for tax identification, along with other forms for employers.

💡 Tips for Managing Your Business Checking Account

Reviewing your specific situation with an attorney can help you navigate your business finances effectively.

🏦 Keep Your Business and Personal Finances Separate

Having a dedicated business checking account helps keep your personal and business finances distinct. This separation is crucial for accurate bookkeeping and simplifies tax reporting.

📋 Understand Your Business Structure

Choosing the right business structure, whether an LLC or corporation, impacts your taxes and liabilities. Research how your structure affects your banking needs and responsibilities.

🔄 Monitor Your Cash Flow Regularly

Regularly tracking your cash flow will help you manage your business checking account effectively. This practice allows you to avoid overdrafts and maintain a healthy balance.

📆 Stay Informed About Filing Deadlines

Be aware of important deadlines, such as the Form 8822-B reporting deadline. Changes in your responsible party must be reported within 60 days to avoid penalties.

🛠️ Utilize Free Resources for Support

The Small Business Administration (SBA) offers free counseling and resources. These can help you understand the best practices for managing your business checking account.

🏆 Business Services Ranked by User Reviews (2026)

This section lists services related to business formation and management, which are essential for handling your business checking account effectively. The ratings come from Trustpilot data collected in October and reviews vary in detail and sentiment. Ratings can change as user experiences evolve; unhappy customers tend to leave more feedback.

🥇 1. Bizee

Bizee has been rated 4.8. It is known for its comprehensive business formation services, registered agent services, and compliance services. However, some users mention occasional issues with the user interface, which may affect ease of use.

🥈 2. ZenBusiness

ZenBusiness holds a Trustpilot score of 4.8. It is recognized for its business formation services, registered agent services, and compliance services. Some users report delays in processing times, impacting their experience.

🥉 3. LegalZoom

LegalZoom has a score of 4.6. This service offers business formation services, estate planning, and intellectual property registration. Some users have reported delays in customer support response times, which could be a drawback for urgent needs.

4️⃣ Rocket Lawyer

Rocket Lawyer averages 4.5. It is known for online legal services, document preparation, and legal advice. A few users find the subscription model less cost-effective for those who only need services occasionally.

5️⃣ LawDepot

LawDepot scores 4.0. It specializes in legal document creation, including business formation documents. Some users have reported issues with document customization options, which might limit usability for specific needs.

🆓 Free Government and Nonprofit Help

The Small Business Administration (SBA) offers free business counseling and resources. The IRS also provides materials to help new business owners understand their tax obligations, which is vital for managing a business checking account.

🔎 What to Compare When Choosing Services

  • 🏛️ Service offerings: Ensure they match your business needs.
  • 🕒 Processing times: Consider how quickly they can assist you.
  • 📈 Customer reviews: Pay attention to feedback for insights into user experiences.
  • 💰 Cost structure: Evaluate if the fees align with your budget.

❓ Frequently Asked Questions

❓ What is the accrual accounting method?

The accrual accounting method records income when it is earned and expenses when they are incurred, regardless of when cash is exchanged. This method is required for certain businesses starting in 2026.

📄 How do I obtain an EIN?

Most businesses can apply for an Employer Identification Number (EIN) online through the IRS website. This number is essential for tax identification purposes.

🗂️ What forms do employers need for new employees?

Employers must have new employees complete Form I-9 for employment eligibility verification and Form W-4 for tax withholding. These forms help ensure compliance with federal regulations.

📅 What are the filing fees to form a business?

Filing fees for forming a business entity like an LLC or corporation generally range between $50 and $300, depending on the state where the business is registered.

🔍 How can I keep track of my business finances?

Regularly monitoring your business checking account and cash flow can help you maintain a clear view of your finances. This practice is essential for making informed business decisions.

🚨 What happens if I miss a reporting deadline?

Missing a reporting deadline, such as for Form 8822-B, may result in penalties or complications with your business status. It is crucial to stay aware of all important deadlines.

⚖️ Recent Cases Impacting Business Checking Accounts

Recent court rulings have clarified various aspects of business finance and banking practices. These rulings can affect how businesses manage their checking accounts and comply with regulations.

To learn more about the latest rulings, you can browse more rulings on the news page.

End of October 2026 Update





Using a Business Checking Account



Setting up a business checking account is an important step in starting a small business. While there may be some business owners who will be tempted just use an existing personal checking account, doing this is typically a bad idea for many reasons. It is much easier to just have a separate business checking account, especially during tax season. Any legitimate business should have a business checking account.  

Business Checking Account

This includes home-based businesses, sole proprietors, and even tiny micro businesses can benefit greatly from having a business checking account.  Conveniently, it is relatively simple to open a business checking account.



Steps to Opening up a Business Checking Account

Gather the appropriate documentation needed by the financial institution that will set up the business checking account. The following will be required:

• Articles of Incorporation for C-corporations or S-corporations

• Articles of Organization  for LLCs

• Business License if required

• Funds to for the opening account balance deposit

• Social Security Number and an Employer Identification Number

• Two forms of identification with one of them having photo identification and other having a name and signature

After obtaining the necessary documentation, visit a local credit union or bank in a convenient area to set up the business checking account. Doing so in person can help start a relationship with the bank which can be important if later in the future the business needs to grow or expand. A better relationship means a better chance of getting more lines of credit or a small business loan. 

Completing an application for a business checking account is fairly simple and only requires basic information such as a name, personal address, business name and address, social security number, and an employer identification number. 

Next, it is important to make an initial deposit into the business checking account either by cash, money order, or check. It’s possible to find banks with very low prices for an initial deposit, for example as little as $100, but many will need larger initial deposits that can be around $500.

After the account is created, the bank’s representative will suggest ordering checks, but it may not be necessary to do through the bank since bank rates for purchasing checks are typically very high. It is best to first get the initial checks and then order more from a discount provider. Ordering them will require different pieces of information on the bank branch, the business, and account information.

The last step is to just start using the business checking account for payments and deposits for the business. It is important to keep in mind that if there will be another signer to the account, that person should be present when setting up the account and should have all the proper personal information as well.