What you need before you start

A business checking account requires proof that your business exists as a legal entity separate from you personally. The documents you'll need depend on your business structure — sole proprietorship, partnership, LLC, S-corp, or C-corp each have different requirements. Most banks will ask for your Employer Identification Number (EIN), which you get from the IRS, or your Social Security Number if you're a sole proprietor without employees.

You'll also need a government-issued ID, your Social Security Number or EIN, and proof of your business address. Some banks ask for a business license, articles of incorporation, or partnership agreement. A few banks require a minimum deposit to open the account, though many have dropped this requirement. Call the bank before you go in so you know exactly what to bring.

Key Takeaways

  • You need an EIN from the IRS for most business structures, or your Social Security Number if you're a sole proprietor without employees.
  • Bring your government-issued ID, proof of business address, and the formation documents for your business structure (articles of incorporation, LLC operating agreement, or business license).
  • Different banks have different minimum deposit requirements and monthly fees, so compare accounts before you choose one.
  • The entire process usually takes 15 to 30 minutes in person, or one to three business days if you open the account online.

Getting your EIN from the IRS

If your business is structured as an LLC, partnership, S-corp, or C-corp, you need an EIN before you open a checking account. A sole proprietor without employees can use their Social Security Number instead, but many sole proprietors get an EIN anyway to keep their personal and business finances separate.

You can get an EIN for free from the IRS at irs.gov/ein. The online application takes about 15 minutes and you get your number immediately. You can also apply by phone at 1-800-829-4933 (Monday through Friday, 7 a.m. to 10 p.m. Eastern time) or by mail using Form SS-4. If you apply online or by phone, you can use your EIN right away. If you mail the form, it takes about four weeks.

Documents to bring to the bank

For a sole proprietorship, bring your government-issued ID, Social Security Number or EIN, and proof of your business address (a utility bill, lease, or mortgage statement dated within the last 60 days works). Some banks also ask for a business license.

For an LLC, bring your government-issued ID, EIN, articles of incorporation or certificate of formation (the document you filed with your state), and proof of business address. For a partnership, bring the partnership agreement along with the same ID and address documents. For an S-corp or C-corp, bring your articles of incorporation, EIN, and ID.

If you're opening the account online instead of in person, the bank will ask you to upload images of these documents. Make sure the images are clear and show all four corners of the document.

Comparing accounts and fees

Business checking accounts vary widely in cost. Some banks charge a monthly maintenance fee ($10 to $30 is common), while others waive the fee if you keep a minimum balance or maintain a certain number of monthly transactions. Some accounts charge per check, per deposit, or per wire transfer. A few banks offer free business checking with no minimums or per-transaction fees.

Before you open an account, look at how many checks you'll write per month, how many deposits you'll make, and whether you'll need wire transfers or other services. An account that's free with a $5,000 minimum balance costs you nothing if you keep that balance anyway, but costs you money if you can't. An account with a $15 monthly fee but no minimums might be cheaper if your balance fluctuates.

Check whether the bank offers online banking, mobile deposit (photographing checks with your phone), and integration with accounting software like QuickBooks. These features don't cost extra but save time and reduce errors.

Opening the account in person versus online

Opening in person at a branch takes 15 to 30 minutes. You bring your documents, the banker verifies them, you sign paperwork, and you leave with checks or a debit card. You can deposit money into the account immediately if you want.

Opening online takes one to three business days. You upload your documents, answer questions about your business, and the bank reviews everything. You'll get an email or phone call if they need more information. Once approved, you can log in and start using the account, though you may not be able to deposit checks or withdraw cash until your debit card arrives.

Some banks let you do a hybrid: start online and finish at a branch, or start at a branch and complete the paperwork online. Ask your bank which option is fastest for your situation.

What happens after you open the account

Once your account is open, the bank will give you a routing number and account number. You'll use these to set up direct deposit for customer payments, pay bills by check or ACH transfer, and connect to accounting software. Keep these numbers safe — they're on every check you write.

Your first box of checks usually arrives within one to two weeks. You can order more checks from the bank or from third-party vendors like Deluxe or Costco, which are often cheaper. Many businesses now use online bill pay instead of checks, which is faster and leaves a digital record.

Set up online banking right away so you can monitor your balance, review transactions, and catch fraud quickly. Most banks offer two-factor authentication (a code sent to your phone) to protect your account.

Common reasons banks reject applications

Banks may deny a business checking account if your business structure documents don't match the information you provided, if you have a history of fraud or unpaid debts, or if your business is in a high-risk industry (some banks avoid cannabis, cryptocurrency, or payday lending). If you're denied, ask the bank why. You can then either fix the problem and reapply, or try a different bank.

Some banks specialize in businesses that others reject. Community banks and credit unions are sometimes more flexible than large national banks. Online banks often have fewer restrictions but may not offer in-person services if you need them later.

Frequently Asked Questions

Can I open a business checking account without an EIN?

Yes, if you're a sole proprietor without employees. You can use your Social Security Number instead. However, many sole proprietors get an EIN anyway to keep personal and business finances separate and to protect their Social Security Number from being exposed on business documents.

How much money do I need to open an account?

It depends on the bank. Many banks have no minimum deposit requirement. Others require $100 to $2,500 to open the account. Some waive the minimum if you set up direct deposit or maintain a certain balance. Ask the bank before you apply.

What if my business address is my home?

That's fine. Bring a utility bill, lease, or mortgage statement showing your home address. Some banks ask for a separate business address to reduce fraud risk, but most accept a home-based business address without issue.

Can I open a business account if my business isn't registered yet?

Most banks require proof that your business is registered with your state. For an LLC or corporation, this means filing articles of incorporation or formation. For a sole proprietorship, you may only need a business license, which some states don't require. Check your state's requirements before you contact the bank.

How long does it take to get my debit card?

If you open in person, you may get a temporary card or checks on the spot. A permanent debit card usually arrives within one to two weeks. If you open online, your debit card arrives after your account is fully approved, which typically takes three to five business days.