You need a business license, tax ID, and proof of ownership to open a business bank account
Most banks will ask for three things before they open an account: proof that your business exists as a legal entity, proof of your tax identification number, and proof that you own or control the business. The exact documents vary slightly by bank and by what type of business you run, but the pattern is the same across all of them. Banks need to verify you are who you say you are and that the business is real.
The documents themselves are not hard to get if you have already registered your business. If you have not registered yet, you will need to do that first — before you can open the account. Registration happens at your state or local level, not at the bank.
Key Takeaways
- You will need a federal Employer Identification Number (EIN) from the IRS, even if you are a sole proprietor with no employees.
- Bring proof of business registration — a certificate of formation, articles of incorporation, or a DBA filing, depending on your business structure.
- Bring a government-issued photo ID for each owner or authorized signer, plus proof of your address such as a utility bill or lease.
- Some banks ask for a business plan or proof of business activity; others do not, so call ahead to ask what your specific bank requires.
- The whole process usually takes one to two weeks from the time you submit documents to the time the account is active.
The tax ID and business registration documents
Your Employer Identification Number (EIN) is a nine-digit number issued by the IRS. You can get one free by applying online at irs.gov, by phone, or by mail. The online application takes about 15 minutes and you receive your number immediately. You do not need to have employees to get an EIN — sole proprietors, partnerships, and corporations all need one.
Bring the IRS letter that confirms your EIN. If you applied online, you can print the confirmation page. If you applied by phone or mail, the IRS will send you a letter in the mail within two weeks. Banks accept either one.
You also need proof that your business is registered with your state or local government. What that document is called depends on your business structure. If you formed a corporation or LLC, it is called a Certificate of Formation or Articles of Incorporation — you received this when you filed with your Secretary of State. If you are operating under a name different from your personal name, you need a DBA filing (Doing Business As) from your county clerk. If you are a sole proprietor operating under your own name, you may not need a separate registration, but some banks ask for one anyway.
All of these documents are public records. If you have lost yours, you can request a copy from the same office that issued it — your state Secretary of State for incorporation documents, or your county clerk for DBA filings.
Personal identification and address proof for owners
The bank needs to verify that the person opening the account is actually the owner or authorized representative of the business. Bring a government-issued photo ID — a driver's license, passport, or state ID card. If there are multiple owners or signers on the account, each person needs to bring their own ID.
You also need to prove your address. The bank will accept a recent utility bill, lease agreement, mortgage statement, or government mail with your name and address on it. It should be dated within the last 60 to 90 days. A utility bill is the easiest option because most banks accept it without question.
If you are opening the account on behalf of the business but are not the owner — for example, if you are a manager or accountant — the bank will ask for a document showing you have authority to do so. This is usually a board resolution, a power of attorney, or a letter from the owner authorizing you to open the account. Ask the bank what form they prefer before you go in.
What banks ask about your business itself
Some banks ask for proof that your business is actually operating. This might be a business license from your city or county, a recent invoice or receipt showing business activity, or a lease for your business location. Not all banks require this — many will open an account based on registration documents alone — so call your bank first and ask what they need.
A few banks ask to see a business plan or a description of what the business does. This is less common and usually only happens if you are opening a business account at a bank where you do not already have a personal account. A simple one-page description of your business and how you plan to use the account is usually enough.
If your business involves money services — like payroll processing, currency exchange, or lending — the bank may ask additional questions or require additional documentation. These are federal compliance requirements, not the bank being difficult.
Documents you bring versus documents the bank obtains
You bring the documents listed above to the bank in person or submit them online, depending on how the bank handles account opening. The bank then verifies some of them on its own. For example, the bank will check your EIN against IRS records and may verify your business registration with your Secretary of State.
The bank will also run a background check on you and any other owners or signers. This is a standard part of opening any business account. The bank is checking for fraud history, unpaid judgments, or other financial red flags. This check does not affect your credit score.
You do not need to bring bank statements, tax returns, or proof of income unless the bank specifically asks. Many banks ask for these later, after the account is open, if you want to borrow money or set up merchant services.
How to prepare before you go to the bank
Make a checklist of what your specific bank needs. Call the bank's business banking line or visit their website and look for "business account requirements" or "what to bring." Different banks have slightly different rules, and it is faster to ask once than to make two trips.
Gather your documents in one place: your EIN letter, your Certificate of Formation or DBA filing, your government ID, and your address proof. Make copies of everything. You will give the originals or certified copies to the bank, and you want to keep copies for your records.
If you are opening the account online, you will upload scans or photos of these documents. Make sure the images are clear and show the entire document. If text is blurry or cut off, the bank will ask you to resubmit.
If you are opening in person, bring the originals. The bank may ask to make copies or may ask you to bring certified copies — ask when you call to confirm what they need.
What happens after you submit your documents
The bank will review your documents and run its background checks. This usually takes three to five business days. If everything checks out, the bank will contact you to confirm the account details and ask how you want to fund it — by check, wire transfer, or cash deposit.
Once you fund the account, it is active and you can start using it. You will receive your debit card, checks, and online banking login information within one to two weeks. Some banks offer temporary debit card numbers or digital wallet access while you wait for the physical card.
If the bank needs more information or has questions about your documents, they will contact you. This is usually because something did not match — for example, the address on your ID does not match the address on your utility bill — or because they need clarification on your business structure. Respond as quickly as you can so the process does not stall.
Frequently Asked Questions
Can I open a business account if my business is not registered yet?
No. You need to register your business with your state or local government first. Registration takes a few days to a few weeks depending on your state and whether you file online or by mail. Once you have your registration documents, you can open the bank account.
Do I need a business license to open a business bank account?
Not always. A business license and a business registration are different things. You need registration (a Certificate of Formation, DBA filing, or equivalent). A business license from your city or county is required to operate in many industries, but not all banks require you to have it before opening the account. Call your bank to ask.
What if I am a sole proprietor and do not have an LLC or corporation?
You still need an EIN from the IRS. You may or may not need a DBA filing depending on whether you operate under your own name or a business name. If you use your own name, some banks will open the account with just your EIN and ID. If you use a different name, you need a DBA filing. Call your bank to confirm what they need.
Can someone else open the account for me if I cannot go to the bank?
Yes, but the bank will need a power of attorney or a board resolution authorizing that person to open the account on your behalf. The authorized person will also need to bring their own government ID and address proof. Ask the bank what document they prefer before you send someone in your place.
How long does it take from submitting documents to having an active account?
Usually one to two weeks. Document review takes three to five business days, funding takes one to two days, and you receive your card and checks within one to two weeks. If the bank asks for additional information, it may take longer. Online account opening is sometimes faster than in-person opening.