Managing finances efficiently is one of the most critical aspects of running a small business. For small teams, setting up a shared business account can streamline expense tracking, simplify financial management, and improve transparency across the team. Whether you’re launching a startup, running a creative agency, or managing a remote team, a shared business account offers structure and accountability that personal accounts lack. This guide will walk you through each step in setting up a shared business account properly, including preparation, documentation, provider selection, and usage best practices.
Understanding the Purpose of a Shared Business Account
Before opening a shared account, it’s important to understand its role in your team’s financial ecosystem. A shared business account is typically held under the name of your company or organization and is accessible by more than one authorized person—usually founders, managers, or finance team members. This shared structure helps ensure that all business-related transactions, such as paying vendors, receiving client payments, and reimbursing team expenses, are centralized and well-documented.
Unlike a personal bank account, a business account also helps establish financial credibility. Many institutions offer added features such as expense categorization, invoicing tools, and integration with accounting software. These features become essential as your team and operations grow.
Step 1: Choose the Right Business Structure
The first step in opening a shared business account is determining your business’s legal structure. Your options typically include sole proprietorship, partnership, limited liability company (LLC), or corporation. Each structure has different implications for how a bank views your organization and what documents will be required to open an account.
For small teams, a partnership or LLC is usually the most common setup. An LLC, for instance, provides legal separation between the business and the individuals running it, offering some level of personal liability protection. Banks generally require formal registration with a government body to verify the business’s legitimacy before approving a shared account.
Step 2: Register Your Business and Get an EIN
Once you’ve chosen your business structure, you’ll need to register your business name with the appropriate state or national authority. In most countries, this involves filing for a “Doing Business As” (DBA) name or registering your company name with the local commerce bureau.
In the U.S., obtaining an Employer Identification Number (EIN) from the IRS is mandatory for partnerships, LLCs, and corporations. An EIN functions like a Social Security Number for your business and is required by most banks when opening a business account. It’s a straightforward process that can usually be done online in less than 15 minutes.
Step 3: Choose the Right Banking Partner
Not all banks offer the same level of service for small teams. Some banks have higher monthly fees or minimum balance requirements that may not be ideal for new businesses. You’ll want to compare traditional banks, online banks, and fintech platforms to see which one aligns best with your team’s needs.
Here are a few criteria to evaluate:
- User access control: Can multiple team members be added with different permission levels?
- Fees and transaction limits: Are there monthly maintenance fees or charges per transaction?
- Online banking features: Does the platform offer mobile access, real-time alerts, and expense tracking?
- Integration capabilities: Can it sync with accounting tools like QuickBooks, Xero, or Wave?
Online banks such as Mercury, Brex, and Relay are designed specifically for modern small businesses and offer features tailored to team collaboration and remote access. Traditional banks may offer in-person support but might lag in digital tools.
Step 4: Gather Required Documentation
Before visiting the bank or applying online, gather all required documentation. While exact requirements vary depending on the financial institution and your business structure, most banks will ask for the following:
- Business formation documents (e.g., Articles of Incorporation or Operating Agreement)
- EIN confirmation letter from the IRS
- Government-issued IDs for all individuals who will have access to the account
- Business license or permits, if applicable
- Partnership agreement, if you’re running a general or limited partnership
- Corporate resolution or meeting minutes granting authority to open an account (for corporations)
Preparing these documents ahead of time ensures a smoother and faster application process.
Step 5: Apply for the Shared Account
With documentation in hand, it’s time to apply for the shared business account. Depending on the bank, this can be done either online or in person. If applying online, ensure the platform offers a secure portal for document uploads and e-signatures.
During the application process, you’ll be asked to designate the primary account holder and add authorized users. This is where you determine who on your team can access funds, initiate transfers, or view account statements. Many banks allow you to set different access levels—such as view-only, transaction-only, or full access—for each user, which helps manage security and responsibility.
You may also have the option to order multiple debit cards for team members and set individual spending limits.
Step 6: Set Up Internal Controls and Policies
Opening the account is only part of the process; managing it wisely is equally important. You should establish internal controls and protocols to ensure that shared access doesn’t lead to financial mismanagement or confusion.
Define who is allowed to:
- Approve payments or expenses
- Issue reimbursements
- Transfer funds between accounts
- Access monthly statements and financial reports
Also, consider implementing a two-person approval process for large transactions. For added transparency, ensure your accounting software records every user activity tied to the shared account.
Training your team on these guidelines is crucial, especially if new hires or junior staff members will have limited access. This step fosters accountability and minimizes the risk of errors or fraud.
Step 7: Monitor and Maintain the Account
After your shared account is active and in use, ongoing monitoring is necessary. Schedule monthly or quarterly reviews of transactions to ensure everything aligns with your budget and business goals. Assign one team member—or an external bookkeeper—to reconcile the account regularly and flag discrepancies.
You should also review your banking relationship annually. Are you using all the features you’re paying for? Are fees increasing? Does another provider now offer better value or functionality? Keeping this in check ensures your shared account continues to serve your small team effectively as the business evolves.
Conclusion
Setting up a shared business account for your small team is a crucial step toward building a financially organized and transparent operation. It begins with choosing the right legal structure, registering your business properly, and selecting a bank that aligns with your team’s needs. With the right documentation and internal policies, your shared account becomes more than just a place to hold money—it becomes a financial hub for your growing team.
By following the steps outlined in this guide, you can ensure that your shared business account supports not just daily transactions, but also long-term financial health, better collaboration, and operational success.