What you need before you walk in
A business bank account separates your personal money from your business money. Banks require proof that your business exists and that you have the authority to open an account on its behalf. The exact documents depend on your business structure — sole proprietorship, partnership, LLC, or corporation — and the bank you choose.
Start by gathering your Employer Identification Number (EIN), which the IRS issues to most businesses. If you operate as a sole proprietor and have no employees, you may use your Social Security number instead, but an EIN keeps your personal and business finances more clearly separated. You can get an EIN free from the IRS website or by phone in minutes.
You will also need a government-issued ID, your Social Security number, and proof of your business address. Some banks ask for a business license or articles of incorporation. Have these documents ready before you call or visit a branch — it speeds up the process and shows the bank you are organized.
Key Takeaways
- You need an EIN (or your Social Security number for a sole proprietorship), a government ID, and proof of your business address before opening an account.
- Different business structures — sole proprietor, LLC, corporation — require different documents, so know your structure before you contact a bank.
- Banks verify that you have legal authority to open the account, which is why they ask for articles of incorporation, partnership agreements, or operating agreements.
- Monthly fees, minimum balances, and transaction limits vary widely between banks, so compare options before committing.
- The process usually takes one to three business days from the time you submit documents until the account is active and you can deposit money.
Documents for each business structure
A sole proprietorship is the simplest. You and your business are legally the same entity. Bring your government ID, Social Security number or EIN, and proof of your business address. Some banks ask for a business license if your state or city requires one. That is usually all you need.
An LLC (limited liability company) is a separate legal entity. Bring your articles of organization (the document you filed with your state to create the LLC), your EIN, a government ID, and proof of the business address. The bank will verify that the LLC exists and that you are authorized to act on its behalf.
A partnership requires articles of partnership or a partnership agreement showing who the partners are and their ownership stakes. Bring those documents along with each partner's ID and Social Security number or EIN. The bank may require all partners to sign the account opening paperwork, or it may allow one designated partner to sign on behalf of the partnership — this varies by bank.
A corporation (C-corp or S-corp) needs articles of incorporation, a corporate resolution authorizing the account, and the EIN. The corporate resolution is a document signed by the board of directors stating that the corporation authorizes this person to open and manage the bank account. Your accountant or attorney can provide a template, or the bank may have one you can use.
How the account opening process works
Most banks let you start online or in person. Online is faster if the bank's system recognizes your documents automatically. You upload your ID, EIN letter, and business address proof. The bank reviews them, usually within one business day, and either approves the account or asks for clarification.
In-person opening at a branch takes longer but gives you a chance to ask questions and understand the account features before you commit. Bring all your documents and your government ID. A banker will verify your information, explain the account terms, and have you sign the signature card — the document that authorizes you to withdraw money and make decisions on the account.
Once the bank approves your account, it typically takes one to three business days for the account number to be assigned and for you to access online banking. Some banks let you start using the account immediately for deposits, while others wait until the account is fully set up. Ask the banker or check your confirmation email for the timeline.
Fees and account features to compare
Business accounts cost more than personal accounts. Monthly maintenance fees range widely — some banks charge nothing if you keep a minimum balance or maintain a certain number of transactions per month, while others charge a flat fee regardless. Compare the monthly cost across three or four banks before you decide.
Check the transaction limits. Some accounts include a set number of deposits and withdrawals per month; going over costs extra. If you process many checks or make frequent transfers, a higher limit may be worth paying for. Also ask about check printing costs, wire transfer fees, and whether the bank charges to deposit checks by phone or mobile app.
Look at the minimum balance requirement. Some business accounts require you to keep a certain amount in the account at all times — often $500 to $2,500. If you fall below that, you may be charged a fee. Others have no minimum. If your cash flow is tight, a no-minimum account may be better, even if the monthly fee is slightly higher.
What happens after you open the account
The bank will issue you a debit card, checks, and online banking access. You can usually set up online banking immediately and start moving money. Checks take longer — the bank prints them and mails them to you, which typically takes five to ten business days.
Set up direct deposit if your business receives regular payments from clients or customers. You will need to provide your bank's routing number and your new account number to whoever is paying you. Direct deposit is free and usually takes one to two business days to process the first time.
Review your account statements monthly. Reconcile them against your own records to catch any errors or unauthorized charges. Most banks offer free reconciliation tools in their online banking platform. Keep records of all deposits and withdrawals for tax purposes — your accountant will need them at year-end.
When you need more than one account
Some businesses open a second account to separate different revenue streams or to hold customer deposits. For example, a contractor might keep client retainers in one account and operating expenses in another. This is legal and common, but each account has its own monthly fee, so factor that into your decision.
If you plan to open a second account at the same bank, the process is faster — the bank already has your information on file. You may only need to sign new paperwork and choose the account type. If you are opening at a different bank, you will need to provide the same documents again.
Frequently Asked Questions
Can I open a business account without an EIN?
Yes, if you are a sole proprietor with no employees, you can use your Social Security number instead. However, an EIN is free and keeps your personal and business finances more clearly separated for tax purposes. Most banks prefer an EIN because it makes record-keeping simpler.
How long does it take to open a business account?
Online applications are usually approved within one business day. In-person applications at a branch can be completed the same day, but the account may not be fully active for one to three business days. You can often start depositing money before the account is completely set up.
Do I need a business license to open a business account?
It depends on your state and city. Some require a business license for any business, while others only require one for certain industries like food service or construction. Check your local requirements. Even if you do not have a license yet, many banks will open the account if you have your EIN and articles of organization or partnership agreement.
What if I am a partnership — do all partners have to sign?
It varies by bank. Some require all partners to sign the account opening paperwork and the signature card. Others allow one designated partner to sign on behalf of the partnership. Ask the bank before you go in, and bring all partners' IDs just in case.
Can I change banks later if I do not like this one?
Yes. You can open a new account at a different bank and transfer your balance over. Notify anyone who deposits money to your account of the new account number. Close the old account once you have moved everything. There is no penalty for switching banks.