Connecting Your Business Bank Account at Collective

For streamlined bookkeeping through Collective, you'll need to connect a business bank account. Keeping your business and personal transactions separate is a fundamental part of running your business smoothly. Whether you operate as a single-member LLC or an LLC with an S Corp election, maintaining this separation helps protect your legal liability and ensures your financials are tax-ready.

Why This Matters

Maintaining a dedicated business bank account is essential for establishing a clean financial baseline. When business and personal funds are mixed—often called "co-mingling"—it creates messy accounting and can potentially jeopardize the liability protection your entity is designed to provide. In most cases, having a separate account allows Collective to deliver the clear, organized, and tax-ready financials you need to focus on your craft.

Your Banking Options with Collective

Collective supports several ways to get your business banking connected to your dashboard:

• Open a new Relay account: Relay is a business banking platform that Collective has partnered with. You can open an account directly within your activation flow.
• Connect an existing business account: If you already have a business bank account, you can securely link it to Collective using Plaid.
• Open an account with another provider: You can open an account with any bank of your choice (such as Mercury, Chase, or Bank of America) and then return to Collective to connect it.

Opening a New Relay Account

If you don't have a business bank account yet, opening one with Relay through Collective is an easy and practical way to get started. Relay is built for "Businesses-of-One," and our partnership helps make the process straightforward.

How It Works: The application is integrated into your Collective setup to save you time.

1. Select Relay: When you reach the "Open your business bank account" step, select Open with Relay and then Apply for account.
2. Review Pre-filled Details: To simplify the process, the application is pre-filled with information you've already provided to Collective, such as your name and business address.
3. Complete the Form: Fill in any missing details. Note: Your EIN is pre-filled and locked because Collective submits your official EIN confirmation letter directly to Relay to ensure accuracy.
4. Submit: Most members receive an approval decision within minutes.
5. Get Approved: Once approved, you will receive an email in the email you provided from Relay to create your secure login. After setting up your credentials on Relay's site, return to the Collective app to link the account via Plaid.

If Your Application Needs Additional Review

In some cases, Relay may require additional information to verify your identity or business. If this happens:

• Your application status will update to In Progress in your dashboard.
• You may be asked to upload documents, such as a photo ID or business formation papers.
• Review typically concludes within 2 - 3 days.

If Relay is unable to approve your application, you can still continue your Collective membership by connecting a different business bank account from another provider.

Guide to Linking Your Relay Account via Plaid

Once your Relay business bank account is approved, the final step is to securely connect it to Collective. We use Plaid to create a secure, ongoing connection between Relay and your Collective dashboard. This allows your transactions to sync automatically so our team can provide clear, tax-ready financials year-round.

Why This Matters

For both LLC and S Corp members, keeping business activity in a dedicated account is essential for maintaining a clean financial baseline. Linking via Plaid ensures your bookkeeping is automated and accurate, preventing the need for manual spreadsheets or manual data entry.

How to Connect Relay Using Plaid

Connecting your account is straightforward and typically takes only a few minutes.

1. Start in Collective: If you’re in the activation flow, navigate to the Connect / Create Bank Account step that you used to sign up with Relay.  Now that your Relay account is open, this step will guide you to connect your Relay bank account.  Alternatively, navigate to the Bank accounts section in your Settings and connect a new bank account.
2. Select "Connect Account": Choose the option to connect an existing account.
3. Search for Relay: In the secure Plaid window, type "Relay Financial" into the search bar and select it.
4. Secure Authentication: Enter the email and password you created on the Relay website after your account was approved.
   • Note: Collective never sees or stores these credentials; the login is handled entirely by Plaid's encrypted system.
5. Verify Your Identity: If prompted, enter the security code sent to your phone or email as part of Relay’s multi-factor authentication.
6. Authorize Access: Select the specific Relay accounts (e.g., your main checking or savings accounts) you want to sync with Collective.
7. Finalize: Once you confirm, your transaction history will begin to import into your dashboard.

Connecting an Existing Relay Account

If you already have a Relay account for your business, you can link it directly to Collective without opening a new one.  

1. On the bank connection screen, select Open with another bank.
2. Search for Relay using Plaid, our secure partner service that links your account without sharing your login credentials with us.  
3. Log in to your existing Relay account when prompted.
4. Select the specific business account(s) you would like to connect and confirm.

Your Relay account will be linked to your Collective dashboard immediately.  

Connecting a Different Bank Account

If you use another banking provider, you can still easily connect your accounts through our secure Plaid integration.  

• On the bank connection screen, select Open with another bank and search for your financial institution by name.
• Log in using your bank's credentials, select the accounts you want to sync, and confirm.
• If you cannot find your bank, try searching for its full official name. Ensure you are using your business-specific login, as many banks have separate portals for personal and business accounts.

If you continue to have trouble, our support team is available to help you navigate the process.  

Opening a New Account Outside of Collective

For many businesses, opening a bank account independently is a preferred first step. If you choose to open an account on your own, please ensure the provider is supported by Plaid to guarantee a smooth integration with Collective. Once your account is active, you can follow the steps above to link it to your dashboard.

Frequently Asked Questions

Why does Collective partner with Relay? Relay is designed for solopreneurs and offers a fast application with no monthly fees or minimum balance requirements for their starter plan. Because our systems are connected, we can pre-fill much of your application to get your back office running faster.

Is my money secure? Relay is a financial technology company, not a bank. Banking services are provided through their partner, Thread Bank (Member FDIC), where deposits are insured up to $3M.

Why can't I edit my EIN on the Relay application?

Collective submits your EIN confirmation letter directly to Relay as part of your application. The EIN field is locked to ensure the number on your application matches the official IRS documentation. If your EIN appears incorrect, contact Collective support before submitting.

What documents might Relay request?

In some cases, Relay may ask for additional verification such as a government-issued photo ID, proof of business address, or business formation documents. If documents are needed, you'll see an upload prompt in your Collective dashboard.

Can I use my Relay account for things outside of Collective?

Yes. Your Relay account is a fully functional business bank account. You can use it for all your business banking needs — receiving payments, paying expenses, transferring funds, and more.

Can I connect multiple bank accounts?

Yes. After you complete your initial setup, you can connect additional bank accounts from your Collective dashboard at any time.

Is connecting my bank account secure? Yes. Collective uses Plaid to securely link your accounts. We do not see or store your bank login credentials.

Is it safe? Yes. Plaid uses Advanced Encryption Standard (AES-256) and is trusted by thousands of financial institutions to keep your data secure.

How often do transactions sync? Most connections refresh every 4 to 12 hours, ensuring your dashboard metrics are always current.

What if the connection drops? Occasionally, you may need to "Re-link" if you update your Relay password or if security protocols change.  This is out of Collective’s control and is based on the security protocol established by Relay.  You'll see a simple prompt in your Collective dashboard to restore the sync.

What if I’m on the LLC Tier vs. S Corp Tier? Regardless of your tier, you operate as an LLC at the state level and must maintain separate business banking to stay in good standing. While S Corp members will eventually use their business account to fund owner payroll, LLC tier members use their account to track the Schedule C business activity that Collective manages for them.

Need Help?

Questions? Send a message to the team through the Collective messaging center in your Dashboard.

Disclaimer: This information is provided for informational purposes only and should not be construed as legal, financial, or tax advice.