Documents and information you'll need before you walk in

Most banks want the same core set of documents before they'll open a business account. You'll need your Employer Identification Number (EIN) — a nine-digit number the IRS assigns to your business. If you're a sole proprietor, you can use your Social Security number instead, but an EIN keeps your personal and business finances separate on paper. You can get an EIN free from the IRS website or by phone; it takes minutes.

Bring a government-issued photo ID (driver's license or passport) and proof of your business address. A utility bill, lease agreement, or mortgage statement dated within the last 60 days works. If you operate from home, a recent bill with your home address is fine. Some banks also ask for your business formation documents — articles of incorporation for an LLC or corporation, or a DBA (doing business as) certificate if you're operating under a name different from your legal name.

Have your Social Security number ready, even if you're using an EIN. Banks run background checks and verify your identity against Social Security records. If your business is a partnership or corporation, bring the names and Social Security numbers of all owners with 20% or more stake in the company.

Key Takeaways

  • You need an EIN (or your Social Security number if you're a sole proprietor), a government photo ID, and proof of your business address.
  • If your business is registered as an LLC or corporation, bring your formation documents; if you use a DBA, bring that certificate.
  • Banks will ask for the names and Social Security numbers of all owners with 20% or more of the business.
  • Different account types (checking, savings, money market) have different minimum balances and fee structures — compare before you choose.
  • Opening typically takes 15 to 30 minutes in person or one to three business days online, depending on the bank.

What banks ask about your business itself

The bank will ask what your business does, how long you've been operating, and roughly how much money moves through the account each month. Be honest. Banks use this to assess risk and decide which account tier fits you. A freelancer moving $2,000 a month gets different terms than a retail store moving $50,000 a month.

They'll also ask whether you have other business accounts elsewhere. This isn't a disqualifier — it's standard. If you're switching banks or consolidating accounts, say so. Some banks offer incentives to move your primary account to them, so mention if you're considering it.

Choosing between account types and minimums

Most banks offer a basic business checking account, a business savings account, or both. Checking accounts are for daily transactions — deposits, payments, payroll. Savings accounts earn interest but usually limit how many withdrawals you can make per month. Some banks bundle them together at a discount.

Minimum balance requirements vary widely. Some banks have no minimum; others require $500, $1,000, or more to avoid monthly fees. If you fall below the minimum, you typically pay $10 to $25 per month. Ask the bank what happens if you dip below temporarily — some waive the fee once a month or if you maintain the minimum on average over the statement period.

Check the fee structure for the specific services you'll use: wire transfers, ACH transfers, check printing, stop payments, and overdraft protection. A bank with no minimum balance but high per-transaction fees might cost more than one with a $1,000 minimum and included transfers.

In-person versus online account opening

Opening in a branch takes 15 to 30 minutes. The banker verifies your documents on the spot, answers questions, and you walk out with a debit card and account number. You can start depositing money immediately. This works well if you want to ask about services specific to your business or if you prefer face-to-face setup.

Online opening through the bank's website or app takes one to three business days. You upload photos of your documents, answer questions, and sign electronically. The bank verifies everything remotely. You get your account number right away and can set up transfers, but your debit card arrives by mail a few days later. Online opening is faster if you're not in a hurry for the physical card.

Some banks offer both options. If you're unsure whether a bank will open an account for your type of business, call ahead — some have restrictions on industries like cannabis, cryptocurrency, or high-risk sectors.

After the account opens: what comes next

Once your account is open, you'll receive checks (if you ordered them), a debit card, and online banking login credentials. Set up online banking and bill pay right away so you can manage the account remotely. Most banks let you do this the same day your account opens.

If you have employees, you'll need to set up payroll. Many banks offer payroll services, or you can use a third-party provider like ADP or Gusto and link it to your bank account. You'll need your EIN and your state's unemployment insurance account number, which you get from your state's labor department.

Consider setting up a separate savings account for taxes or operating reserves. Many business owners move a percentage of each deposit into savings automatically to avoid spending money earmarked for taxes or emergencies.

What to compare between banks

Don't pick the first bank you call. Compare at least three on these points: monthly fees, minimum balance, per-transaction fees for the services you'll actually use, interest rate on savings (if you're opening one), and whether they offer merchant services if you'll take card payments.

Ask whether the bank offers a business credit card, a line of credit, or a merchant account. Some banks bundle these at a discount for account holders. If you think you'll need to borrow money later, ask about their small business loan terms — rates and approval speed vary.

Check online reviews for the bank's customer service, especially for business accounts. Business banking support is often different from personal banking support, and response times matter when you have payroll due.

Common mistakes to avoid

Don't mix personal and business money in a personal account. It complicates taxes, makes accounting harder, and can expose your personal assets if your business is sued. A business account costs little to nothing and protects you.

Don't assume all banks accept all business types. Call before you go in. Some banks won't open accounts for sole proprietors; others have restrictions on certain industries. Knowing this ahead saves a wasted trip.

Don't ignore the fee schedule. A bank with no monthly fee but $3 per wire transfer will cost you more than one charging $15 a month if you wire money twice a week. Do the math based on how you'll actually use the account.

Frequently Asked Questions

Can I open a business account as a sole proprietor without an EIN?

Yes. Sole proprietors can use their Social Security number instead of an EIN. However, getting an EIN is free and keeps your personal and business finances separate in the bank's records, which is cleaner for accounting and taxes. The IRS website lets you get one instantly.

How long does it take to get an EIN if I don't have one yet?

The IRS issues EINs immediately online at irs.gov/ein. You can also apply by phone or mail, but phone and mail take longer. If you apply online, you have your number within minutes and can open a bank account the same day.

What if my business is brand new and I have no revenue yet?

Banks will still open an account for you. They ask about expected monthly volume, not actual history. Be honest about your projections. A new business with no revenue yet is not unusual, and banks account for it when setting your account type and minimum balance.

Do I need a separate business account if I'm a sole proprietor?

You're not legally required to, but it's strongly recommended. A separate account makes tax time easier, keeps your personal and business finances clear, and protects your personal assets if your business faces a lawsuit. The cost is minimal or free at most banks.

Can I open a business account online if I'm out of state?

Yes, many banks open accounts online for customers in any state. Some regional banks only serve certain states. Check the bank's website or call to confirm they serve your state before you start the online application.