Chime does not offer business checking accounts
Chime's checking and savings accounts are designed for personal use only. The company does not provide a separate product line for sole proprietors, partnerships, corporations, or any other business structure. If you need a business checking account, you will need to open one with a different bank or financial institution.
This matters because using a personal account for business transactions can create tax and legal complications. The IRS expects business income and expenses to flow through a separate account, and mixing personal and business money makes it harder to document what you owe at tax time. If your business faces a lawsuit, commingling funds can also weaken the legal separation between you and your company.
Key Takeaways
- Chime offers personal checking and savings accounts only, with no business account product.
- Using a personal account for business transactions can complicate tax reporting and reduce legal protection for your business.
- Banks that do offer business checking typically require an Employer Identification Number (EIN) or Social Security Number, a business license, and an initial deposit.
- Some online banks and credit unions offer business checking with lower monthly fees than traditional banks.
- If you are a sole proprietor just starting out, you may be able to use your personal account temporarily while you research business banking options.
Why banks separate personal and business accounts
Banks maintain separate product lines for personal and business accounts because the regulatory requirements differ. Business accounts require verification of your business structure—whether you are a sole proprietor, LLC, S-corp, or C-corp—and proof that you actually operate a business. Personal accounts require only an individual's identity and Social Security Number.
The IRS also treats business and personal accounts differently during audits. If your business account is separate, your tax records and bank statements align, which makes the audit process faster and reduces the chance of penalties. A mixed account creates a paper trail that is harder to defend.
What you need to open a business checking account elsewhere
Most banks require the same core documents to open a business account. You will need proof of your business structure—a business license, articles of incorporation, or an LLC formation document from your state. You will also need an Employer Identification Number (EIN), which you can obtain free from the IRS website. If you are a sole proprietor, some banks will accept your Social Security Number instead of an EIN, though an EIN keeps your personal number off business documents.
Banks also ask for a personal identification document (driver's license or passport), proof of your business address, and an initial deposit. The deposit amount varies by bank—some require $100, others $500 or more. A few online banks waive the deposit requirement entirely.
You will also need to choose your business structure before you apply. The structure determines which tax forms you file and how much personal liability protection you have. A sole proprietorship is the simplest but offers no liability protection. An LLC or S-corp requires more paperwork but shields your personal assets if the business is sued.
Online banks and credit unions that offer business checking
Several online banks offer business checking with lower fees than traditional brick-and-mortar banks. Square Cash for Business, Stripe, and PayPal all offer business accounts with no monthly fee and no minimum balance. These work well if you primarily need to receive payments and transfer money, though they may have limits on the number of transactions per month.
Axos Bank, LendingClub, and Novo offer full-featured business checking with online access, debit cards, and ACH transfers. Monthly fees range from $0 to $15 depending on the account type and balance. Credit unions in your area may also offer business checking; you can search for one near you through the CO-OP Network or Alliant Credit Union.
Traditional banks like Chase, Bank of America, and Wells Fargo offer business checking but typically charge $15 to $25 per month plus per-transaction fees. They may be worth the cost if you need in-person service, a large number of transactions, or integration with a business loan.
The difference between sole proprietor and business entity accounts
If you operate as a sole proprietor—meaning you have not formed an LLC or corporation—some banks will let you open a business account using just your Social Security Number and a business license. This is the fastest route if you are just starting out. The account is still legally separate from your personal account, which helps with tax reporting.
If you have formed an LLC or corporation, you must provide an EIN and your formation documents. The bank will verify that your business structure exists before opening the account. This takes longer but is required by law.
What happens if you use a personal Chime account for business
Chime's terms of service prohibit using personal accounts for business purposes. If the company detects business activity—regular deposits from customers, business-related transfers, or patterns that suggest commercial use—they may freeze the account or close it without warning. You could lose access to your money while Chime investigates.
Even if Chime does not catch it, the IRS may flag a personal account during a business audit. Commingling funds makes it harder to prove which transactions were business expenses and which were personal, which can result in denied deductions and penalties.
Alternatives if you cannot open a business account yet
If you are in the early stages of a business and do not yet have an EIN or business license, you have a few options. You can apply for an EIN immediately through the IRS website—it takes about 15 minutes and costs nothing. You can then use that EIN to open a business account at most banks, even if you have not yet filed business formation documents with your state.
Some states allow you to operate as a sole proprietor without filing any paperwork, using only your Social Security Number. In that case, you can open a business account at banks that accept SSN-based business accounts. Check with your state's Secretary of State office to confirm what is required in your area.
If you are not ready to commit to a business account, you can also use a separate personal account at a different bank and treat it as your business account for accounting purposes. This is not ideal—it does not provide legal separation and may still trigger account closure if the bank detects business use—but it is better than mixing business and personal money in the same account.
Frequently Asked Questions
Can I use my Chime personal account for a small side business?
Chime's terms prohibit business use of personal accounts. If the company detects regular business deposits or transfers, they may freeze or close your account. It is safer to open a separate business account, even if your business is small or part-time.
Do I need an EIN to open a business checking account?
Most banks require an EIN for business accounts, but some accept a Social Security Number if you are a sole proprietor. An EIN is free and takes 15 minutes to obtain from the IRS website. Having one keeps your personal number off business documents and is worth getting even if not strictly required.
What is the cheapest way to open a business checking account?
Online banks like Square Cash for Business, Stripe, and Novo offer business checking with no monthly fee and no minimum balance. Traditional banks typically charge $15 to $25 per month. Credit unions in your area may also offer low-cost business accounts.
Can I switch from Chime to a business account later?
Yes. You can open a business account at any time and transfer your money out of Chime. Keep your Chime account open for at least 30 days after the transfer to make sure all pending transactions clear, then close it. There is no penalty for closing a Chime account.
What if my business is just me—do I still need a business account?
Even as a solo operator, a separate business account makes tax time easier and protects you legally if your business is sued. It also looks more professional to customers and vendors. Most online business accounts have no monthly fee, so the cost is minimal.