What you need before you walk into a bank
You will need to bring proof that your business exists and proof of your identity. For a sole proprietorship, that usually means your Social Security number and a government-issued ID. For an LLC, corporation, or partnership, you will need your Employer Identification Number (EIN) — a nine-digit number the IRS assigns to your business — and the formation documents filed with your state (articles of incorporation, articles of organization, or partnership agreement).
Some banks also ask for a business license or DBA (Doing Business As) certificate, though this varies by state and by bank. Call ahead to the specific branch where you plan to open the account and ask what documents they require. This saves a trip back home.
You will also need to decide how much money you are depositing to open the account. Most banks have a minimum opening deposit, which ranges from zero to several hundred dollars depending on the account type and the bank. Some waive the minimum if you set up direct deposit or maintain a certain balance.
Key Takeaways
- Bring your EIN (or Social Security number for a sole proprietorship), government-issued ID, and your business formation documents to the bank.
- Call the bank branch before you go to confirm which documents they need, since requirements vary by institution and state.
- You will choose between a basic checking account, a money market account, or a sweep account, depending on how you plan to use the money.
- The whole process usually takes 15 to 30 minutes in person, or you can start online and finish in the branch if the bank offers that option.
- After opening, you will receive checks, a debit card, and online banking access, usually within one to two weeks.
Getting your EIN if you do not have one yet
If your business is not a sole proprietorship operating under your own name, you need an EIN before you can open a business bank account. You can get one free from the IRS at irs.gov by filling out Form SS-4 online. The online application takes about 15 minutes and you receive your EIN immediately.
If you prefer to apply by mail or fax, you can download Form SS-4 from the IRS website and send it to the address listed on the form. Processing by mail takes about four weeks. You do not need to wait for the EIN to arrive in the mail — the IRS will give you the number as soon as you submit the form online, and you can use it right away.
Choosing the right account type for your business
Most small businesses open a business checking account, which lets you write checks, use a debit card, and deposit money without mixing personal and business funds. This is the simplest option and what most banks recommend for startups.
Some businesses also open a business savings account or money market account alongside checking. These earn interest on your balance, though the rate varies by bank and by how much money you keep in the account. A money market account usually requires a higher minimum balance but pays a higher interest rate.
A sweep account automatically moves money between checking and savings to earn interest on idle funds while keeping money available for daily spending. This is more common for businesses with larger balances or more complex cash flow.
What happens during the account opening appointment
When you arrive at the bank, a representative will ask you to verify your identity and your business information. They will review your documents, confirm your EIN, and ask you basic questions about your business — what you do, how long you have been operating, and how you plan to use the account. This is standard practice and takes about 10 to 15 minutes.
You will then sign the account agreement, which outlines the bank's fees, minimum balance requirements, and rules for the account. Read this carefully before signing, especially the section on monthly fees and overdraft policies. Some banks charge a monthly maintenance fee unless you maintain a certain balance or set up direct deposit.
You will choose a debit card PIN, set up online banking, and decide whether you want checks ordered. The bank will give you temporary checks or a starter checkbook on the spot, and permanent checks arrive by mail within one to two weeks.
Opening an account online versus in person
Many banks now let you start the process online and finish in the branch, or complete the entire opening online if you have a government-issued ID that can be verified digitally. Online opening is faster — you can do it in 10 minutes — but you still need to visit the branch to verify your documents in person at some banks, or to deposit your opening balance.
If you choose to open entirely online, the bank will mail you a debit card and checks. This takes longer overall (one to two weeks) but saves you a trip. If you need to use the account immediately, opening in person is faster because you walk out with temporary checks and online access the same day.
Fees and ongoing costs to watch for
Business checking accounts charge different fees than personal accounts. Common monthly fees range from zero to $25 depending on the bank and the account tier. Some banks waive the fee if you maintain a minimum balance (often $1,000 to $5,000) or if you set up direct deposit.
Watch for per-check fees, wire transfer fees, and overdraft fees. Some banks charge $0.10 to $0.50 per check deposited, and wire transfers can cost $15 to $50 each. Overdraft fees typically run $25 to $35 per occurrence. Ask the bank for a complete fee schedule before you open the account so you understand the total cost.
Compare fees across at least two or three banks in your area. A bank with no monthly fee but high per-transaction costs may cost more than a bank with a flat monthly fee if you write many checks or make frequent deposits.
What to do after your account opens
Once your account is open, set up online banking and download the bank's mobile app if you use a smartphone. Most banks let you deposit checks by taking a photo with the app, which is faster than visiting a branch.
Order business checks with your account number and routing number printed on them. Some banks print these for free; others charge $10 to $30 per box. You can also use temporary checks or a debit card for most transactions while you wait for permanent checks to arrive.
If you have employees, ask the bank about setting up payroll. Many business banks offer payroll services or can connect you with a payroll processor. If you plan to accept credit card payments from customers, ask about merchant services — the bank can set this up or refer you to a processor.
Frequently Asked Questions
Can I open a business bank account as a sole proprietor without an EIN?
Yes. If you operate under your own name and have no employees, you can use your Social Security number instead of an EIN. Bring your Social Security card or a document showing your number, your government-issued ID, and proof of your business (a business license or DBA certificate if your state requires one). Some banks prefer an EIN even for sole proprietors, so call ahead to ask.
How long does it take to get my debit card and checks?
Debit cards usually arrive within 7 to 10 business days. Permanent checks take 10 to 14 business days. The bank will give you temporary checks or a starter checkbook on the day you open the account so you can use the account immediately.
What is the difference between a business account and a personal account?
Business accounts are designed for business use and offer features like higher deposit limits, merchant services, and payroll integration. They cost more in monthly fees but provide legal separation between your personal and business finances, which protects you in case of a lawsuit. Personal accounts are cheaper but should not be used for business transactions.
Do I need to bring my business partner or co-owner to open the account?
It depends on the bank and your business structure. Some banks require all owners to be present and sign the account agreement. Others let one owner open the account and add signers later. Call the bank and ask whether all owners need to attend or if you can add them after opening.
Can I open a business account online without visiting a branch?
Some banks allow fully online opening if you have a government-issued ID that can be verified digitally. Others require you to visit a branch to verify your documents in person. Check the bank's website or call to ask whether they offer full online opening, or whether you need to come in to complete the process.