What you need before you walk in
A business bank account requires proof that your business exists as a legal entity separate from you personally. The documents you bring depend on your business structure — sole proprietorship, partnership, LLC, S-corp, or C-corp each have different requirements.
For a sole proprietorship, you typically need a government-issued ID, your Social Security number, and proof of your business name (a DBA certificate if you registered one, or a business license). For an LLC or corporation, you need your Articles of Organization or Articles of Incorporation, an Employer Identification Number (EIN) from the IRS, and your ID. A partnership requires a partnership agreement, each partner's ID and Social Security number, and an EIN.
Banks also ask for an initial deposit amount, which varies by institution — some require $100, others $500 or more. A few online banks have no minimum. You will also need to decide whether you want a checking account, savings account, or both, and whether you need merchant services (the ability to accept card payments).
Key Takeaways
- Your business structure (sole proprietorship, LLC, corporation) determines which documents the bank will ask for, but all require government-issued ID and proof your business is registered.
- An EIN from the IRS is required for LLCs and corporations; sole proprietors can use their Social Security number instead, though some banks prefer an EIN.
- Different banks have different minimum deposit requirements, ranging from zero to $500 or more, so comparing options before you visit saves time.
- The entire process typically takes one to two weeks from application to account opening, though some online banks complete it in days.
Getting an EIN if you need one
If your business is an LLC, S-corp, C-corp, or partnership, you need an Employer Identification Number from the IRS before you open the account. A sole proprietor can use their Social Security number, but many banks prefer an EIN anyway because it keeps your personal and business finances more clearly separated.
You can obtain an EIN free from the IRS at irs.gov/ein. The online application takes about 15 minutes and you receive your number immediately. You can also apply by mail (Form SS-4) or phone, though those routes take longer. Print or save your confirmation letter — banks often ask to see it.
Choosing between in-person and online banks
In-person banks (Chase, Bank of America, Wells Fargo, your local credit union) let you walk in with your documents, speak to someone face-to-face, and often open the account the same day. They typically charge monthly fees ($10 to $25) unless you maintain a minimum balance or set up direct deposit. They offer in-branch support if you have questions later.
Online banks (Mercury, Brex, Wise, Square Cash) have lower or no monthly fees and no minimum deposit requirements. You upload documents and complete the process entirely online, usually within 24 to 48 hours. The trade-off is no physical branch to visit and customer support only by phone or chat. Online banks are often better for startups with tight cash flow; in-person banks are better if you need to deposit checks frequently or prefer talking to a person.
Documents to bring or upload
Have these items ready before you contact a bank:
- Your government-issued photo ID (driver's license or passport)
- Your Social Security number or EIN
- Articles of Organization (for LLCs) or Articles of Incorporation (for corporations), or a DBA certificate (for sole proprietors)
- A business license from your city or county, if you have one
- An IRS EIN confirmation letter, if your business is not a sole proprietorship
- A recent utility bill or lease in your business name, if the bank asks for proof of your business address
Some banks also ask for a voided check or deposit slip to confirm your account details. If you are opening the account online, you will photograph or scan these documents and upload them through the bank's website or app.
What happens after you open the account
Once approved, the bank issues you a routing number and account number. You can begin receiving deposits (from clients, investors, or transfers from your personal account) immediately, though the bank may hold funds for a few business days depending on the source. You can order checks, which typically arrive within one to two weeks.
If you need to accept card payments from customers, ask the bank about merchant services or point-of-sale systems at the time you open the account. Some banks offer this directly; others refer you to a third party. Setting up merchant services usually takes a few additional days and may require a separate agreement.
Common reasons banks decline or delay
Banks may ask for additional information if your business documents do not match your ID, if your address is unclear, or if your business name is very similar to an existing account at that bank. They also run a background check, and some may decline if you have a history of overdrafts or fraud at other banks.
If a bank declines you, ask why — the reason determines your next step. If it is a documentation issue, you can reapply once you have corrected it. If it is a background issue, try a credit union or an online bank that has different underwriting standards. Some banks specialize in accounts for businesses with limited credit history or prior banking problems.
Comparing fees and features across banks
| Bank Type | Monthly Fee | Minimum Deposit | Time to Open | Best For |
|---|---|---|---|---|
| In-person bank (Chase, Bank of America, local credit union) | $10–$25 (waived with minimum balance or direct deposit) | $100–$500 | Same day to 1 week | Frequent check deposits, in-person support |
| Online bank (Mercury, Brex, Wise) | $0–$10 | $0–$100 | 24–48 hours | Low fees, fast setup, digital-first business |
| Credit union | $5–$15 | $25–$500 | 1–2 weeks | Lower fees, community focus, member support |
Frequently Asked Questions
Can I use my personal bank account for my business?
Legally, no — commingling personal and business funds weakens the liability protection your business structure provides and makes taxes harder to file. The IRS expects business income and expenses in a separate account. A business account also makes accounting and tax preparation simpler and looks more professional to clients and lenders.
Do I need an EIN if I am a sole proprietor?
No, you can use your Social Security number instead. However, many banks prefer an EIN because it keeps your personal credit separate from your business credit. An EIN is free and takes 15 minutes to obtain online, so most sole proprietors get one anyway.
How long does it take to open a business bank account?
In-person banks typically open accounts the same day or within one week. Online banks usually complete the process within 24 to 48 hours. The time depends on how quickly you provide documents and how long the bank's background check takes.
What if my business address is my home?
Most banks accept a home address as your business address. You may need to provide a utility bill or lease in your name to prove you live there. Some banks ask for a separate mailing address if it differs from your business address.
Can I open a business account without an EIN if I have an LLC?
Most banks require an EIN for LLCs, partnerships, and corporations. A few may accept your Social Security number temporarily, but they will ask you to provide an EIN within 30 days. It is faster to obtain the EIN first and bring it with you.