Opening a business bank account isn’t optional. DCWP expects you to operate as a real business, keep clean financial records, and separate your personal money from your contracting operations. A proper business account also makes it easier to get insurance, pay subcontractors, and avoid messy audits.

This guide lays out exactly what you need, where to open an account, and which option we recommend.

What You Need Before You Apply

Every bank—traditional or online—will ask for the same core documents:

1. Your Business Formation Documents

• LLC: Articles of Organization

• Corporation: Articles of Incorporation

• Sole Proprietor: DBA certificate (if operating under a trade name)

2. EIN (Employer Identification Number)

Even sole proprietors should get one. It avoids mixing your SSN into everything.

3. Business Address

Banks require a physical address—not a P.O. Box.

4. Ownership & Personal ID

Driver’s license or passport for every person with 25%+ ownership.

5. Operating Agreement (LLC Only)

Many banks require it. If you don’t have one, create one before applying.

Our Recommendation: Mercury

If you want the fastest, cleanest, low-friction setup, go with Mercury.

Why Mercury Works for NYC Contractors

• Fast approvals

• No minimum balance

• No monthly fees

• Clean UI, easy transfers, and great integration with bookkeeping tools

• Great for small contracting companies, especially if you're just getting your HIC license

• Support for LLCs, corporations, and sole proprietors

• Doesn’t require in-person visits

Mercury gives you checking, savings, virtual cards, and simple cash management with none of the big-bank nonsense.

Bottom line: if you don’t need in-person deposits (cash), Mercury is the best all-around option.

Digital Banking Alternatives

If Mercury doesn’t fit your needs, here are other solid online options:

Relay

• Extremely contractor-friendly

• Great multi-account setup

• Useful if you have multiple jobs, subcontractors, or want cleaner budgeting

• No fees

• Works well for separating escrow-style funds, even though DCWP requires formal rules for progress payments (see DCWP requirements). oai_citation:1‡DCAInspectionChecklist_HomeImprovement.pdf

Bluevine

• Higher interest on balances

• Good line-of-credit options

• Strong for contractors doing large-volume materials purchasing

Novo

• Simple, modern interface

• Solid for smaller operations

• No physical branches (like all digital-only banks)

NYC Traditional Bank Options

If you regularly deal with cash deposits or prefer walking into a branch, choose a local bank. These are the best NYC options for contractors:

Chase Business

• Dominant NYC presence

• Easy cash deposits, tons of ATMs

• Strong fraud protection

• Popular with insurance brokers and subcontractors

• Downside: fees sneak up unless you maintain minimums

Bank of America

• Solid for daily transactions

• Strong customer service for small businesses

• Decent mobile app, big branch network

TD Bank

• Open late and on weekends

• Good if you want a human available outside 9–5

• Contractor-friendly policies

• Not as polished digitally

Citibank

• NYC-based

• Good for businesses planning to scale

• Better treasury tools, but overkill for small contractors

What NYC Contractors Should Consider When Choosing a Bank

Cash Handling

If you take deposits or occasional cash payments, choose TD or Chase. Digital banks won’t help with physical cash.

Integrations

If you want smooth sync with QuickBooks, Gusto, or other contractor tools, Relay and Mercury are your best bet.

Trust Fund Compliance

DCWP requires that progress payments be deposited in an escrow account when applicable.

You won’t find this automatically labeled at any bank—you’ll need to open a separate account to comply with DCWP’s structure.

Checks

Many homeowners still pay by check. All banks support this, but Relay, Mercury, and Novo handle digital check deposits smoothly.

Loan or Credit Access

If you want easier access to credit or a future line of credit, go traditional: Chase > BoA > TD.

Bottom Line

Modern contractors don’t need to waste time dealing with traditional bank drama unless they handle cash every day. For 90% of NYC Home Improvement Contractors, Mercury is the best overall business banking choice—fast, clean, and built for small businesses.

If you need a branch, go with Chase. Otherwise, keep it simple and go digital.