Pro tip: Your side hustle needs a bank account too!

Whether you are starting a million-dollar business venture or hoping to make $500 on your side hustle this year you should have a business bank account. According to the IRS, if your side hustle made a net profit of $400 or more in 2022, you have to pay taxes on it. It’s easier to prove you need to pay taxes or not pay taxes if you keep the funds separate.

So, what is a business bank account? It’s a checking, savings, credit card or other financial account that is used only for business transactions.

What is needed when opening a business account? Typically, the bank will ask for the following items. (To ensure you have everything you need view our business bank account guide.)

• LLC: Articles of Organization / Corp: Articles of Incorporation (bring original copy to the bank)
• SS-4 form with your tax ID (EIN Number) (bring original copy to the bank)
• Address on the account (where to send mail)
• Phone number for business
• List of business owners and ownership percentage breakdown (total 100%)
• Account signers full name, social security number, date of birth, driver license number including issue date and expiration date, home address, phone number, email, title

What about my side hustle? There are two ways to create a bank account for your side hustle. The first is to follow the same guidelines as stated above for a business account. The second option is to open a personal checking account DBA. DBA stands for ‘doing business as.’ This allows for checks to be made out directly to your business for deposit. Typically, the bank will ask for the following items:

• Address on the account (where to send mail)
• Phone number for business
• List of business owners and ownership percentage breakdown (total 100%)
• Account signers full name, social security number, date of birth, driver license number including issue date and expiration date, home address, phone number, email, title

Opening a separate account for your business is one step towards tracking your financial success. If you have any questions about the items needed to open an account at Northwestern Bank or have gathered the listed documents; stop into any of our branches to see if a Northwestern Bank account is the right fit for your business.   

Have a question we can help with? Meet our business banking team here and reach out with your questions.

Ready to finance your business? Click here to start the process with a Northwestern Bank lender.

Check out more articles for your business here: View our blog

Questions to ask when choosing your bank?

Business 101: How to kick off a viable business idea

Looking to learn from other local entrepreneurs? Check out the podcast Banker with a Beer where local entrepreneurs, non-profits, and city officials share their insights on financial matters through a frosted lens. Listen on Apple, Spotify or northwesternbank.com/bankerwithabeer/

Banking Podcast | Banker With A Beer | Northwestern Bank