What you need before you walk into a bank
A business bank account requires proof that your business exists as a legal entity separate from you personally. The documents the bank will ask for depend on your business structure — sole proprietorship, LLC, partnership, or corporation — and they vary by bank and state.
At minimum, bring a government-issued photo ID (your driver's license or passport), your Social Security number or Employer Identification Number (EIN), and proof of your business address. If you formed an LLC or corporation, bring your Articles of Organization or Articles of Incorporation — the document you filed with your state. If you operate as a sole proprietor or partnership, bring a business license from your city or county, or a Doing Business As (DBA) certificate if you registered one.
Some banks also ask for a business plan summary, recent tax returns, or a letter from your accountant. Call the bank branch you plan to visit and ask what they specifically need for your business structure. This saves a trip back home for a missing document.
Key Takeaways
- You will need a government ID, your Social Security number or EIN, and proof your business is registered with your state or local government.
- The exact documents required depend on whether you are a sole proprietor, LLC, partnership, or corporation, so call ahead to confirm what your chosen bank needs.
- Most banks offer both in-person and online account opening, though some require at least one visit to verify your identity in person.
- Monthly fees, minimum balances, and transaction limits vary widely between banks, so compare options before you commit.
- The account usually opens within one to five business days, and you will receive routing and account numbers to set up payroll or accept payments.
Documents by business structure
A sole proprietorship is the simplest structure. You operate under your personal name or a registered DBA. Bring your driver's license, Social Security number, and either your DBA certificate (if you registered one) or a business license. Some banks accept just the ID and SSN if you can show them a business license online or provide a utility bill at your business address.
An LLC requires your Articles of Organization, which you filed with your state's Secretary of State office. Bring a certified copy or a recent copy from your state's business database. You will also need an EIN from the IRS (you can get one free at irs.gov), though some banks will help you apply if you do not have one yet. Bring your personal ID and the LLC's registered agent information.
A partnership needs the partnership agreement (even if informal and handwritten), proof that the business is registered with your state, and IDs for all partners who will have signing authority on the account. You will also need an EIN.
A corporation requires your Articles of Incorporation, corporate bylaws, and a board resolution authorizing the account opening. Bring an EIN and IDs for the officers and directors who will have access. Some banks ask for a certificate of good standing from your state's Secretary of State office.
In-person versus online account opening
Most national banks and many regional banks offer online account opening for business accounts. You upload photos of your documents, verify your identity through video call or by answering security questions, and the account opens within one to three business days. Online opening is faster and requires no branch visit, but some banks limit the account types available online or require you to visit in person later to receive a debit card or discuss credit products.
In-person opening at a branch takes longer on the day — usually 30 to 60 minutes — but the banker can answer questions about account features, fees, and services on the spot. You walk out with temporary checks and your account number the same day. This route works well if you have questions about which account type fits your business or if you want to discuss a business line of credit at the same time.
Some banks require at least one in-person visit to verify your identity, even if you start the process online. Ask the bank whether you can complete everything remotely or whether you will need to visit a branch.
Comparing account types and fees
Business checking accounts are the standard. They come with a debit card, online banking, and the ability to deposit checks and receive ACH transfers. Monthly fees range from zero to $25 or more, depending on the bank and whether you meet a minimum balance or monthly deposit threshold. Some banks waive the fee if you maintain a certain balance (often $1,000 to $10,000) or receive a minimum amount in deposits each month.
Business savings accounts earn interest but have limited withdrawal rights. They are useful if you want to set aside money for taxes or emergencies while earning a small return. Interest rates vary by bank and economic conditions.
Money market accounts combine checking and savings features, usually with higher interest rates than savings accounts but lower than CDs. They often require a higher minimum balance.
Before you open an account, compare the monthly fee, minimum balance requirement, transaction limits, overdraft fees, and whether the bank charges for wire transfers or ACH transfers. Many banks publish this information online. If you plan to deposit checks frequently, ask whether the bank offers mobile check deposit or whether you must visit a branch.
What happens after you open the account
Once your account is open, you will receive your routing number and account number within one to five business days. You need these to set up direct deposit for payroll, receive payments from customers via ACH, or authorize automatic bill payments. The bank will mail you a debit card and temporary checks, or you can order checks online.
Set up online banking immediately so you can monitor deposits and withdrawals. Most banks offer free bill pay through their online platform, which lets you schedule payments to vendors or contractors without writing checks.
If you plan to accept credit card payments from customers, ask the bank about merchant services. They can connect you with a payment processor, though you do not have to use the bank's processor — you can shop around for lower rates.
Choosing between banks
National banks like Chase, Bank of America, and Wells Fargo have thousands of branches and ATMs, which is useful if you travel or have multiple locations. They also offer robust online banking and mobile apps. Monthly fees tend to be higher, and customer service can be slower during busy times.
Regional banks and credit unions often have lower fees and more personalized service, but fewer branches and ATMs. If you do most of your banking online, this may not matter. Credit unions sometimes offer better rates on business loans and lines of credit.
Online-only banks have the lowest fees and often no minimum balance requirements, but no physical branch to visit if you need to deposit cash or speak to someone in person. They work well for businesses that operate entirely online or rarely need in-person banking.
Visit the websites of three to five banks that serve your area and compare their business checking fees, minimum balances, and features. Many banks offer a comparison tool or a summary sheet you can download.
Common mistakes to avoid
Do not open a personal account for your business. Mixing personal and business money makes tax time harder, can complicate loan applications, and may expose your personal assets if your business is sued. A business account keeps the finances separate and is a requirement for most business structures anyway.
Do not assume all signers on the account need to be owners. You can add employees or contractors as authorized users with limited permissions. Discuss with your accountant or lawyer who should have full signing authority and who should only be able to view balances or deposit checks.
Do not ignore the fee schedule. A $15 monthly fee sounds small until you realize you are paying $180 a year. If you can meet the minimum balance or deposit threshold to waive the fee, do so. If not, switch to a bank with no monthly fee.
Do not wait to reconcile your account. Set aside time each week to match your bank deposits and withdrawals against your business records. This catches errors early and makes tax preparation faster.
Frequently Asked Questions
Can I open a business account if my business is not registered yet?
Most banks require proof that your business is registered with your state or local government. If you have not registered yet, do that first — it usually takes a few days to a few weeks depending on your state. Some banks may accept a business license application or a letter from your accountant confirming your business exists, but this is rare. Call the bank to ask.
Do I need an EIN if I am a sole proprietor?
No. As a sole proprietor, you can use your Social Security number on the business account. However, getting an EIN is free and keeps your personal and business finances more separate, which is useful for taxes and privacy. You can get an EIN at irs.gov in minutes.
How long does it take to open a business account?
Online opening usually takes one to three business days. In-person opening at a branch can be completed the same day, though the account may not be fully active until the next business day. You will receive your routing and account numbers within one to five business days.
What if I do not have a physical business address?
You can use your home address, a virtual office address, or a mailbox service address. The bank needs a physical address for their records, not proof that you have a commercial lease. If you use a mailbox service, bring the receipt or agreement showing the address is registered to your business.
Can I change banks later if I do not like the fees?
Yes. You can close the account and open a new one at another bank. Before you close, make sure all automatic payments and direct deposits are set up at the new bank. The old bank will hold the account open for a short period to process any remaining transactions, but close it formally to avoid surprise fees.