What you need before you walk in

A business bank account separates your personal money from your business money. Banks require proof that your business exists as a legal entity before they will open an account in the business name. What you bring depends on what type of business you have.

If you are a sole proprietor (you own the business by yourself with no formal structure), you will need a government-issued ID and your Social Security number. If your business is registered as an LLC, corporation, or partnership, you will need your articles of incorporation or articles of organization — the document the state gave you when you registered the business. You will also need an Employer Identification Number (EIN), which the IRS issues free at irs.gov. Getting an EIN takes about 15 minutes online and you receive the number immediately.

Bring a recent utility bill or lease in the business name if you have one, though not all banks require this. Some banks ask for a business license from your city or county. Call the bank branch you plan to visit and ask what documents they need — requirements vary between banks and sometimes between branches of the same bank.

Key Takeaways

  • You will need proof your business exists legally: a government ID and Social Security number for sole proprietors, or your articles of organization and EIN for LLCs and corporations.
  • An EIN is free from the IRS and takes 15 minutes to obtain online at irs.gov; you get the number right away.
  • Different banks require different documents, so call ahead to ask what the specific branch needs before you visit.
  • The bank will run a background check through ChexSystems or Early Warning Services, which screens for fraud and unpaid overdrafts at other banks.
  • Bring multiple forms of ID and original documents, not copies, because banks verify information directly with government agencies.

The documents you actually need to bring

Bring originals, not photocopies. Banks verify information directly with state agencies and the IRS, so they need to see the real document. Bring at least two forms of government-issued ID — a driver's license and a passport, or a driver's license and a state ID card. If you are the sole owner, bring your Social Security card or a document that shows your SSN, such as a tax return or W-2.

For an LLC or corporation, bring the articles of organization or articles of incorporation — the document you received from your state when you registered the business. Bring your EIN letter from the IRS. If you do not have it yet, you can print it from the IRS website after you obtain the number online. Bring a business license if your city or county requires one to operate. Some banks also ask for a recent business tax return or a letter from the IRS confirming your EIN.

If someone other than the owner will be signing checks or accessing the account, bring that person's government ID as well. The bank will ask for their Social Security number and will run a background check on them too.

What happens when you arrive at the bank

The banker will verify your identity and the business information you provide. They will ask what the account will be used for — payroll, customer payments, vendor payments, or a mix. They will ask how many checks you expect to write per month and how many people need access to the account. This information helps them recommend the right account type and fee structure.

The bank will run a background check through ChexSystems or Early Warning Services. These services track banking history across institutions and flag accounts closed due to fraud, unpaid overdrafts, or other problems. If you have had trouble at another bank, the bank may decline to open the account or may require a deposit to cover risk. This check takes a few minutes while you wait.

You will sign signature cards and account agreements. Read the fee schedule before you sign — it lists monthly maintenance fees, per-check fees, overdraft fees, and fees for services like wire transfers or stop payments. Ask the banker to explain any fee you do not understand. Some banks waive monthly fees if you maintain a minimum balance or set up direct deposit.

Different account types and what they cost

Most banks offer a basic business checking account and a business savings account. A checking account is for daily transactions — deposits, checks, debit card purchases, and online bill pay. A savings account earns interest on money you are not spending right away. Some banks require you to open both; others let you choose one.

Monthly fees range widely. Some banks charge nothing if you maintain a minimum balance, typically $500 to $2,500. Others charge $10 to $25 per month regardless of balance. Per-check fees range from 25 cents to $1 per check if you write many checks. Debit card transactions are usually free, but some banks charge for each one. Ask whether the bank charges for deposits made at the ATM or through mobile deposit.

Overdraft fees — charged when you spend more than you have — typically run $25 to $35 per overdraft. Some banks offer overdraft protection, which links your checking account to a savings account or line of credit so that if you overdraw, the bank transfers money automatically instead of charging a fee. This costs nothing if you never use it, but you pay interest on any amount transferred from a line of credit.

How long it takes and what you get

The account opens on the day you visit. You will receive a debit card within 5 to 10 business days. Checks take 7 to 14 business days to arrive. Some banks offer temporary checks you can use immediately while you wait for printed checks. You can start making deposits and payments the same day through online banking or mobile deposit.

The bank will give you online banking access before you leave. You can log in immediately to see your account number, routing number, and balance. You will receive a welcome packet by mail with your account agreement, fee schedule, and information about online and mobile banking. Keep this packet — you will need the routing number and account number to set up direct deposit or automatic bill payments.

What to do if the bank says no

A bank can decline to open an account if the background check reveals fraud, if you have unpaid overdrafts at another bank, or if the bank does not serve your industry. Some banks avoid certain industries like cannabis, cryptocurrency, or high-risk lending, even if those businesses are legal in your state.

If one bank declines you, try another. Different banks have different policies. Credit unions sometimes have more flexible requirements than large banks. If you have a history of overdrafts, ask the bank whether you can open an account with overdraft protection disabled — this prevents overdrafts entirely and removes the risk the bank is concerned about.

If you cannot open an account in the business name because your business is not yet registered, open a sole proprietor account in your personal name and register the business later. You can then move the account to the business name once you have your articles of organization and EIN.

Setting up payments and deposits after opening

Once the account is open, you can set up direct deposit so customers or clients can pay you electronically. You will give them your account number and routing number. The bank provides both in your welcome packet and in online banking. Direct deposit typically takes 1 to 2 business days to process.

You can set up automatic bill payments to vendors through online banking. You provide the vendor's account number and routing number, or the bank can send a check automatically on a date you choose. Automatic payments take 1 to 3 business days to clear. You can also use mobile deposit to photograph checks and deposit them without visiting a branch — most banks process mobile deposits within 1 business day.

Add other authorized users through online banking or by visiting the branch. The bank will run a background check on each person you add. You can set limits on what each person can spend or withdraw, and you can see all transactions in real time through online banking.

Frequently Asked Questions

Do I need an EIN if I am a sole proprietor?

No. As a sole proprietor, you can use your Social Security number instead. However, getting an EIN is free and takes 15 minutes, and many sole proprietors get one anyway to keep their personal and business finances more separate. Some banks require an EIN even for sole proprietors, so call ahead to ask.

Can I open a business account online without visiting a branch?

Some banks allow online opening, but most require you to visit in person to verify your identity and original documents. A few banks will accept documents by mail or video call, but this is less common. Call the bank and ask whether they offer remote opening.

What if I do not have a physical business address yet?

You can use a home address, a virtual office address, or a UPS store address. The bank needs a physical address where they can reach you by mail if needed. A PO box alone is not acceptable. If you use a virtual office or mailbox service, bring the agreement showing you have the right to use that address.

How much money do I need to deposit to open the account?

Most banks require an opening deposit of $25 to $100. Some waive the opening deposit if you set up direct deposit. Ask the banker what the minimum is for the account type you want.

What if my business name is different from my legal name?

If you are a sole proprietor operating under a business name (called a DBA or "doing business as"), you may need to register that name with your city or county. Bring the registration document to the bank. If you have not registered it yet, some banks will still open the account in your personal name and let you add the business name later.