A hard bias (HB) structure for longitudinally biasing a free layer in a MR sensor is disclosed that is based on HB easy axis growth perpendicular to an underlying seed layer which is formed above a substrate and along two sidewalls of the sensor. In one embodiment, a conformal soft magnetic layer that may be a top shield contacts the HB layer to provide direct exchange coupling that compensates HB surface charges. Optionally, a thin capping layer on the HB layer enables magneto-static shield-HB coupling. After HB initialization, HB regions along the sensor sidewalls have magnetizations that are perpendicular to the sidewalls as a result of surface charges near the seed layer. Sidewalls may be extended into the substrate (bottom shield) to give enhanced protection against side reading. The top surface of the seed layer may be amorphous or crystalline to promote HB easy axis perpendicular growth.