Business Checking Accounts That Don’t Use ChexSystems

Banks will have their own policies so you’ll have to evaluate on a case-by-case basis. But most banks are required to verify your business as well as the persons associated with the business by obtaining certain documents.

Depending on how you structure your business entity, a bank may run a ChexSystems report to see how you’ve managed past checking and savings accounts. For instance, a sole proprietor will likely be required to provide an SSN (Social Security Number) that can be used to run a ChexSystems report.

However, LLCs and Corporations that have an EIN (Employer Identification Number) may not have a ChexSystems report pulled.

Based on your business type, you may need one or more of the following documents issued by a Government agency:

Sole Proprietor. If the business name does not include the legal first and last name of the owner, you will need additional documentation. For example: If the owner’s legal name is Lisa Phillips, and the business name is Phillips Furniture, you will need additional documentation.

However, if the business name is Lisa Phillips Furniture you will not. The additional documentation needed would be one of the following documents:

• Fictitious Name Certificate or DBA (doing business as)
• Certificate of Assumed Name
• Business License
• Registration of Trade Name

Limited Liability Company (LLCs) You will need one of the following business documents:

• Articles of Organization
• Certificate of Organization
• Certificate of Formation

Corporation You will need one of the following business documents:

• Articles of Incorporation
• Certificate of Good Standing

General Partnership You will need one of the following business documents:

• Partnership Agreement
• Fictitious Name Certificate or Statement
• Certificate of Assumed Name
• Business License

Basic Information on the business owner for all types of business structure

• Personal address
• Mobile phone number
• Email address
• Date of birth
• Social security number

ChexSystems is primarily used to report on consumer banking transactions. But just like a personal guarantee may be required to open a business credit card, your personal banking history can impact your business checking account.

Having negative items on ChexSystems is similar to the albatross of bad credit. It attaches itself and screams to banks “Risky – Do Not Approve!”

Banks use your personal checking account management habits as an indicator of how you might manage a business checking account.

Separating your personal and business finances is one of the first necessary actions you should take when starting a business.

A business checking account makes it easier to qualify for business financing like a merchant cash advance, business loan, microloan, and business credit.