How to Open a Business Bank Account for Your Personal Errands & Concierge Service

The Quick Answer

For most personal errand runners, shoppers, or senior companions starting out, an online business bank account like Mercury, Relay, or Novo is often the best choice. They have no monthly fees, quick setup, and integrate well with payment apps (like Square or Venmo Business) and expense trackers you might use. Choose a traditional bank if you regularly receive cash payments from clients (especially senior clients), need to make cash deposits for client reimbursements, or require in-person support for wire transfers or cashier's checks for large client purchases.

Online Business Banks vs Traditional Banks

Online banks (Mercury, Relay, Novo): These are ideal for errand services that get paid mostly through digital methods. They typically have $0/month fees and are FDIC insured through partner banks. You can open an account in minutes online, and there are no minimum balance requirements. Their best feature is strong software integration with accounting tools (QuickBooks Self-Employed, Wave) and payment processors. The downside: no in-person branch access and you cannot deposit physical cash.

Traditional banks (Chase, Bank of America, Wells Fargo): These banks often have monthly fees ($15-$30), though they can sometimes be waived with a minimum balance. They are directly FDIC insured and offer in-person branches nationwide. This is crucial if you frequently receive cash from clients or need to deposit cash reimbursements from client purchases. Some offer merchant services and SBA loan relationships for future growth. Their software tends to be less modern, and opening an account can involve more paperwork and waiting.

Documents You Need to Open a Business Bank Account

The documents you need depend on how your personal errand or concierge service is set up:

Sole Proprietorship: If you're running your service as yourself without a formal business entity, you'll need your personal government-issued ID, your Social Security Number (SSN), or an Employer Identification Number (EIN) if you have one. If you operate under a business name different from your own (e.g., 'Your City Errands'), you might also need your DBA (Doing Business As) registration certificate.

LLC (Limited Liability Company): For LLCs, you'll need your Articles of Organization (the state-approved document confirming your LLC formation), your EIN confirmation letter from the IRS, your operating agreement, a government-issued ID for all members or authorized signers, and your business address.

Have digital copies of all these documents ready before you start your application. Most online banks can complete the process in one online session, often within 10-15 minutes if you have everything prepared.

When to Use an Online Business Bank

An online business bank is a great fit for your personal errand or concierge service if: * You primarily get paid digitally through apps like Square, Venmo Business, Zelle, or PayPal. * You want zero monthly fees and no minimum balance to keep costs low in the early stages. * You value strong integrations with accounting software (QuickBooks Self-Employed, Xero, Wave) to easily track mileage, client purchases, and business expenses like gas, cleaning supplies, or marketing tools. * You want to separate cash flow into multiple accounts for budgeting – for example, one account for operational expenses and another for setting aside estimated taxes or saving for a new cargo organizer or delivery vehicle. Mercury, Relay, and Novo are all free and built for this.

When to Use a Traditional Bank

Consider a traditional bank for your personal errand or concierge service if: * You frequently receive cash payments from clients, especially senior clients who prefer cash or checks. * You handle client cash for grocery shopping, dry cleaning, or prescription pickups and need a reliable way to deposit the change or reimbursement quickly. * You want a local branch relationship for specific needs, such as needing a notary service or quickly getting a cashier's check for a client's large purchase (e.g., furniture delivery) or sending a wire transfer with in-person support. * You anticipate needing a business loan down the line and want to build a banking relationship early on.

The Verdict

For most personal errand and concierge service owners, start with an online business bank account. It costs nothing to open and often allows you to do it today with your EIN and formation documents (or SSN if you're a sole prop). This account can serve as your primary operating account for digital payments and expense tracking. You can always add a traditional bank account later if your business needs change – for example, if you start taking on more clients who pay in cash. Many successful personal errand service owners run both: an online account for day-to-day digital transactions and a local credit union account for easy cash deposits and local services.

How to Get Started

First, gather your essential documents: your government-issued ID, your EIN letter (if you have one), and your LLC Articles of Organization (if applicable). If you're a sole proprietor, your SSN and DBA certificate (if used) are key. Next, go to the website of an online bank like Mercury, Relay, or Novo and complete their online application. Most accounts are approved and open within 1-3 business days. Once open, transfer a small amount from your personal account to activate it. From day one, route all business income (every errand fee) and all business expenses (gas, supplies, liability insurance, software subscriptions) through this dedicated business account. This strict separation simplifies tax preparation and protects your personal assets.

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