What you need before you walk in

A business bank account is a separate account in your business's name, not your personal name. Banks use it to keep your business money apart from your household money—which matters for taxes, liability, and just knowing where you stand. To open one, you'll need to prove your business exists and that you have the authority to manage its money.

The documents you bring depend on what kind of business you run. A sole proprietorship needs different paperwork than an LLC or corporation. The bank will ask for proof of identity, proof of your business, and sometimes a tax ID number. Bring more than you think you'll need—banks often ask for documents you didn't expect.

Most banks let you start the process online or in person. Online is faster if the bank offers it, but some banks still require you to show up with originals. Call ahead and ask what route is available and what documents they want to see.

Key Takeaways

  • You will need a government-issued ID, proof that your business exists (articles of incorporation, DBA filing, or business license), and usually a tax ID number or Social Security number.
  • Sole proprietorships, LLCs, and corporations each require different documents, so confirm with the bank which ones apply to your business structure.
  • Many banks now let you open a business account online, but some still require an in-person visit with original documents.
  • The bank will ask about the account's purpose, expected monthly deposits, and who else will have access to the account.

Documents for a sole proprietorship

If you operate as a sole proprietor—meaning you're the only owner and haven't filed paperwork to create a separate legal entity—you'll need your personal government-issued ID and your Social Security number. The bank will use your Social Security number as your tax ID.

Bring proof that you're actually running a business. This can be a business license from your city or county, a DBA (Doing Business As) certificate if you registered one, a business website, or invoices you've sent to customers. The bank wants to see that this isn't just a personal account with a business name on it.

Some banks ask for a business plan or a letter explaining what the business does. This isn't a formal document—a paragraph or two describing your services and how you'll use the account is usually enough.

Documents for an LLC or corporation

If you've filed articles of incorporation or articles of organization with your state, bring a certified copy. This is the official document that created your LLC or corporation. You can get a certified copy from your state's Secretary of State office, usually for a small fee, or sometimes download it from their website.

Bring your Employer Identification Number (EIN), which the IRS issued when you registered your business. If you haven't received it yet, you can apply for one online at the IRS website—it takes about 15 minutes and you get a number immediately. Some banks will let you open the account with your Social Security number temporarily and switch to the EIN later, but asking first saves a trip back.

Bring a government-issued ID for the person who will sign checks and manage the account. The bank may also ask for a resolution or authorization letter stating that you have the power to open the account on behalf of the business. If your LLC or corporation has multiple owners, the bank might ask for documentation showing who can make banking decisions.

What the bank will ask you in person or online

The bank will ask what your business does, how much money you expect to deposit each month, and who else will have access to the account. They're not being nosy—they use this information to flag unusual activity later and to set up the right account type for your needs.

They'll ask whether you want checks, a debit card, or both. They'll explain their fee structure: some business accounts charge a monthly fee, some waive it if you keep a minimum balance, and some charge per transaction. Ask about overdraft fees, wire transfer fees, and what happens if your account goes negative.

They'll ask if you want online banking and mobile deposits. Most banks offer these free, but confirm. They'll also ask if anyone else needs to sign on the account—a partner, an employee, an accountant. Each person who signs will need to provide ID and sometimes sign additional paperwork.

How long it takes and what happens next

If you open the account in person with all your documents, you can usually walk out with a debit card and checks ordered the same day. Online applications typically take one to three business days for approval, and checks arrive by mail in five to ten business days.

The bank will give you a routing number and account number immediately. You can use these to set up direct deposits or automatic payments right away, even before your checks arrive. Write down these numbers or take a photo—you'll need them.

Ask the bank for a letter confirming your account is open and in your business's name. Some vendors, landlords, or government agencies ask for this as proof that your business account exists. It's easier to get it now than to call back later.

Choosing between banks

Different banks offer different features. Some specialize in small business and offer free checks, low minimum balances, and customer service that understands your situation. Others charge monthly fees but offer more advanced tools like payroll processing or accounting software integration.

Local banks and credit unions often have lower fees and more flexible requirements than national chains. They may not require a minimum balance or may waive fees if you meet simple conditions. National banks have more branches and ATMs, which matters if you travel or have multiple locations.

Ask about the monthly fee, the minimum balance required to waive it, overdraft fees, wire transfer fees, and whether they offer free online banking and mobile deposits. Compare at least two banks before deciding. The difference in fees can add up to hundreds of dollars a year.

What to do if the bank says no

Banks sometimes decline to open a business account if your personal credit is poor, if you have a history of overdrafts, or if your business structure is unclear. If this happens, ask the bank specifically why. The reason matters because it determines your next step.

If the issue is your personal credit, you can try a different bank—some are more lenient. If the issue is your business structure, you may need to file the paperwork you haven't filed yet (like an LLC formation) or get a business license. If the issue is unclear, ask to speak to a manager and bring more documentation.

Some banks offer "second chance" business accounts for people with banking problems in their past. These usually have higher fees, but they're real accounts that build your banking history. After a year or two of clean activity, you can move to a standard account elsewhere.

Frequently Asked Questions

Can I use my personal bank account for my business?

Legally, yes—but it creates problems. Mixing personal and business money makes taxes harder, makes it harder to prove your business is separate from you (which protects you if someone sues), and makes bookkeeping a mess. A business account costs little and solves all three problems.

Do I need an EIN if I'm a sole proprietor?

No. Sole proprietors can use their Social Security number as their tax ID. You only need an EIN if you have employees, operate as an LLC or corporation, or want to keep your Social Security number private from vendors and customers.

What if I don't have a business license yet?

Some banks will open the account anyway if you have articles of incorporation or an EIN. Others require a business license. Call the bank and ask what they'll accept. If they won't budge, getting a business license from your city or county usually takes a few days and costs under $100.

Can someone else open the account for me?

Not usually. The person who signs the account paperwork must be present with a government-issued ID. If you're out of the country or unable to visit, some banks let you authorize someone with power of attorney, but this is rare and requires extra paperwork.

What's the difference between a business checking and a business savings account?

A checking account is for money you use regularly—paying bills, receiving deposits, writing checks. A savings account earns interest but usually limits how many times you can withdraw per month. Most businesses open a checking account. Some also open a savings account to set aside money for taxes or emergencies.