What you need before you open a business bank account
A business bank account separates your personal and business money, which protects you legally and makes tax time simpler. Most banks will ask for the same core documents regardless of your business structure, but the exact list depends on whether you are a sole proprietor, partnership, LLC, S-corp, or C-corp.
You will need a form of identification (driver's license or passport), your Social Security number or Employer Identification Number (EIN), and proof of your business address. If your business is registered with your state, bring the registration documents. For sole proprietors operating under a personal name, this process is fastest. For any other structure, the bank will want to see formation documents filed with your state.
Some banks also ask for an initial deposit before opening the account. This amount varies by bank and account type — it might be $0, $25, $100, or more. Call ahead or check the bank's website to confirm what they require before you visit.
Key Takeaways
- Bring your ID, Social Security number or EIN, and proof of your business address to any bank meeting.
- Sole proprietors can often open an account with just personal identification, while LLCs and corporations need state formation documents.
- An EIN is free from the IRS and takes about 15 minutes to request online if you do not already have one.
- Different banks charge different monthly fees, require different minimum balances, and offer different numbers of free transactions — compare at least three before deciding.
- You can open a business account in person, by mail, or online depending on the bank, though in-person is fastest if you have questions.
Get an EIN if you do not have one
An Employer Identification Number (EIN) is a nine-digit number the IRS uses to identify your business for tax purposes. If you are a sole proprietor, you can use your Social Security number instead. If you are an LLC, S-corp, C-corp, or partnership, you need an EIN.
You can request an EIN free of charge on the IRS website at irs.gov. Go to the "Apply for an EIN" section and choose "Apply online." The process takes about 15 minutes, and you receive your number immediately. You can also apply by phone (1-800-829-4933), fax, or mail, but online is fastest.
Write down your EIN and keep it in a safe place. You will need it when you open the account, and you will use it for payroll, tax filings, and any business loans or credit applications later.
Gather your business formation documents
If your business is registered with your state — as an LLC, corporation, or partnership — the bank will ask to see proof. This is usually your Articles of Organization (for an LLC), Articles of Incorporation (for a corporation), or partnership agreement. You should have received these documents when you filed with your state's Secretary of State office.
If you have not yet registered your business with your state and plan to do so, complete that step before opening the account. Registration takes a few days to a few weeks depending on your state. If you are operating as a sole proprietor under your own name, you do not need to register anything — your personal ID is enough.
Some banks also ask for a Certificate of Good Standing from your state, which proves your business is in good legal standing. You can request this from your state's Secretary of State office, usually for a small fee ($5 to $25). It is not always required, but having it on hand speeds up the process.
Choose a bank and account type
Banks offer different business account types with different costs and features. A basic business checking account is the most common choice. Some banks also offer business savings accounts, money market accounts, or sweep accounts that move money between checking and savings automatically.
Compare at least three banks on these points: monthly maintenance fees (which range from $0 to $30 or more), minimum balance requirements, number of free checks per month, number of free deposits or withdrawals, and whether they charge per transaction. Online banks often have lower fees than brick-and-mortar banks, but you cannot deposit cash in person. Credit unions sometimes offer lower fees for members.
Ask whether the bank offers online banking, mobile deposits (the ability to photograph a check and deposit it through an app), and ACH transfers (electronic transfers to and from other accounts). These features are standard at most banks now, but it is worth confirming. Also ask about overdraft protection and what the overdraft fee is if you go negative.
Gather your identification and address proof
Bring a government-issued photo ID (driver's license, passport, or state ID card) and proof of your business address. Proof of address can be a utility bill, lease, mortgage statement, or business license — it should be dated within the last 60 to 90 days and show your business name and address.
If your business address is the same as your home address, a personal utility bill in your name works. If you rent a mailbox or use a virtual office address, bring the agreement or receipt from that service showing your name and the address.
If you are opening the account for an LLC or corporation, bring the person who is authorized to sign on the account (usually the owner or a designated manager). That person will need their own ID as well. Some banks require all owners to be present; others allow one authorized person to open the account on behalf of the business.
Open the account in person, by mail, or online
Most banks offer all three options. In-person is fastest if you have questions — you walk in with your documents, answer questions, sign papers, and leave with a debit card and account number the same day. The banker can also help you set up online banking and mobile deposits right away.
Online opening is convenient if you already bank with the institution or prefer not to visit a branch. You upload photos of your documents, answer questions through a form, and sign electronically. This usually takes 24 to 48 hours. You receive your account number by email and can set up online banking immediately, though your debit card arrives by mail a few days later.
By mail is the slowest option. You send copies of your documents and a completed application form to the bank's business account department. Processing takes one to two weeks. This route is useful only if you cannot visit in person and prefer not to open online.
Set up online banking and link your accounts
Once your account is open, log into online banking through the bank's website or app. Create a username and password, set up security questions, and enable two-factor authentication (a code sent to your phone when you log in from a new device). This protects your account from unauthorized access.
If you have a personal bank account at the same institution, you can link the two accounts so you can transfer money between them. If you bank elsewhere, you can set up ACH transfers to move money between your business account and your personal account, or to pay vendors and contractors. Most banks allow you to schedule recurring transfers for payroll or regular bills.
Set up mobile deposit if the bank offers it. This lets you photograph checks and deposit them without visiting a branch, which saves time if you receive checks from customers or clients. Download the bank's mobile app and follow the setup steps in the app itself.
Frequently Asked Questions
Do I need a business license before opening a business bank account?
Not always. A sole proprietor can open an account without a license in most states. If you have an LLC or corporation, you need state registration documents, but not necessarily a local business license. Check with your bank about what they require — some ask for a license, others do not.
Can I use my Social Security number instead of an EIN?
Yes, if you are a sole proprietor. You can use your Social Security number on the account and for tax purposes. If you are an LLC, S-corp, C-corp, or partnership, you must have an EIN.
How long does it take to open a business bank account?
In person, you can walk out with an account number the same day. Online, it usually takes 24 to 48 hours. By mail, expect one to two weeks. Some banks may take longer if they need to verify your documents or if your business structure is complex.
What if I do not have a separate business address?
You can use your home address as your business address. Bring a utility bill or other proof showing your name and home address. If you use a mailbox service or virtual office, bring the agreement from that service instead.
Can I open a business account online if I bank with a different bank?
Yes. Most banks allow you to open a business account online even if you have never banked with them. You will upload photos of your documents and sign electronically. Processing takes 24 to 48 hours, and your debit card arrives by mail.