What you need before you walk in

A business bank account requires proof that your business exists as a legal entity separate from you personally. The documents you bring depend on what type of business you own. If you are a sole proprietor, you will need your Social Security number, a government-issued ID, and proof of your business address (a utility bill or lease works). If you operate under a business name different from your legal name, bring a DBA (Doing Business As) certificate from your county clerk's office.

For an LLC or corporation, bring your Articles of Organization or Articles of Incorporation — the document you filed with your state to create the business. You will also need an Employer Identification Number (EIN), which you can obtain free from the IRS website at irs.gov. The bank will ask for this number even if you are a sole proprietor with no employees; you can use your Social Security number instead, but an EIN keeps your personal and business finances more clearly separated.

Bring a second form of ID if you have one, and be prepared to answer questions about the nature of your business, how much money you expect to deposit monthly, and who will have signing authority on the account. Some banks ask for a business plan or tax returns if your business is already operating, though this is less common for new accounts.

Key Takeaways

  • Sole proprietors need a government ID and Social Security number; LLCs and corporations need their formation documents and an EIN from the IRS.
  • You can obtain an EIN free and instantly online at irs.gov, or by phone or mail if you prefer.
  • Different banks charge different monthly fees, require different minimum balances, and offer different numbers of free transactions — compare these before you choose.
  • The account opening process typically takes 15 to 30 minutes in person, or 10 to 20 minutes online if the bank offers remote account opening.

Where to open the account

You have three main routes: a traditional bank branch, an online bank, or a credit union. Traditional banks (Chase, Bank of America, Wells Fargo, your local community bank) offer in-person service and physical locations where you can deposit cash and checks. Online banks (Novo, Mercury, Brex) have lower fees and faster account setup but require you to deposit checks by photo or transfer funds electronically. Credit unions often have lower fees than large banks but membership requirements vary — some are open to anyone in a geographic area, others require you to work in a specific industry or belong to an organization.

The choice depends on how you receive money and how much you value in-person service. If you receive cash payments or many checks from customers, a branch location matters. If you are paid by invoice and transfer funds electronically, an online bank often costs less and opens faster. Compare the monthly fee, minimum balance requirement, number of free transactions per month, and whether the bank charges per check deposited or per wire transfer sent.

The step-by-step process

If you are opening in person: bring all documents listed above, arrive during business hours, and ask to speak with a business accounts representative. They will verify your identity, confirm your business structure, and ask you to sign signature cards (the bank keeps these to verify who can withdraw money). You will choose a business checking account, and optionally a savings account. The account opens immediately, and you receive a temporary debit card on the spot or by mail within 5 to 7 business days. Checks arrive separately, usually within 7 to 10 business days.

If you are opening online: visit the bank's website, select "business checking," and enter your business information. You will upload photos of your documents (ID, EIN letter, DBA certificate if applicable). Some banks verify your identity through a video call with a representative; others use automated verification. The account opens within one to three business days. You receive login credentials immediately and can begin transferring money right away, though you may not be able to deposit checks until your debit card arrives.

After the account opens, set up online banking and bill pay if the bank offers it. Link your personal account or other business accounts if you need to transfer money between them. Ask the bank whether they offer accounting software integration — many business accounts connect directly to QuickBooks, FreshBooks, or Wave, which saves time when you reconcile your books.

Monthly fees and what they cover

Business checking accounts charge monthly fees that range from zero to $25 or more, depending on the bank and account type. Some banks waive the fee if you maintain a minimum balance (often $1,000 to $5,000) or if you set up direct deposit. Others charge a flat fee regardless. The fee typically includes a set number of transactions — often 50 to 100 per month — and charges you per transaction beyond that limit.

Ask the bank what counts as a transaction. Usually it means checks written, deposits made, or electronic transfers sent. Some banks count each check deposited as a transaction; others count one deposit of multiple checks as one transaction. This matters if you receive many small payments. Online banks often have no monthly fee and unlimited transactions, which can save hundreds of dollars per year if your business has high transaction volume.

Setting up authorized users and signing authority

When you open the account, you designate who can sign checks and withdraw money. As the owner, you are the primary signer. You can add employees, a business partner, or a bookkeeper as authorized users. Each person who signs checks must complete a signature card at the bank. If you add someone later, you typically do this online or by visiting a branch with that person present.

Decide whether you want single-signature authority (one person can withdraw any amount) or dual-signature authority (two people must sign checks over a certain amount). Dual signature is common for nonprofits and partnerships to prevent fraud, but it slows down payments. Most small businesses use single-signature authority for the owner and one trusted employee.

Separating personal and business finances

The main reason to open a business account is to keep your business money separate from your personal money. This separation protects you legally — if your business is sued, creditors cannot easily reach your personal assets if your finances are clearly divided. It also makes tax time simpler: your accountant can pull one bank statement instead of sorting through personal and business transactions mixed together.

From day one, deposit all business income into the business account and pay all business expenses from it. Do not use the account for personal purchases, and do not use your personal account for business purchases. If you need to take money out for yourself, do so as a formal withdrawal or owner draw, which your accountant will record separately. This discipline takes a few minutes per transaction but saves hours during tax preparation.

What happens if you do not have an EIN yet

You can open a business account using your Social Security number instead of an EIN, and many banks will do this. However, getting an EIN first is simpler in the long run. You can obtain one free at irs.gov by filling out Form SS-4 online — it takes about 10 minutes and you receive the number immediately. You can also apply by phone (1-800-829-4933) or by mail, though those routes take longer.

Some banks prefer an EIN because it signals that you have formally registered your business. If you are a sole proprietor and plan to stay small, using your Social Security number is fine. If you think you might hire employees later or want to keep your personal and business finances completely separate from the start, get the EIN before you open the account.

Frequently Asked Questions

Can I open a business account online if I am a sole proprietor?

Yes. Most online banks and many traditional banks allow sole proprietors to open accounts entirely online. You will need a government ID, Social Security number or EIN, and proof of your business address. The process typically takes one to three business days.

Do I need a business license to open a business account?

No. A business license is not required by banks. You do need proof that your business exists — for a sole proprietor, that can be as simple as your ID and Social Security number. For an LLC or corporation, you need your formation documents filed with your state.

What is the difference between a business checking account and a regular checking account?

Business accounts are designed for business use, include features like invoicing tools or accounting software integration, and may offer higher transaction limits. They typically cost more per month but provide better tools for managing business cash flow. Personal accounts are not meant for business use and may violate the bank's terms if you use them that way.

How long does it take to receive checks after I open the account?

Temporary checks or starter checks are usually available immediately or within a few days. Personalized checks with your business name and address take 7 to 14 business days to arrive by mail. Some banks offer expedited check printing for an extra fee.

Can I change banks later if I am not happy with this one?

Yes. You can close the account and move to another bank at any time. Before you close, make sure all outstanding checks have cleared and all automatic payments have been redirected to your new account. Notify customers and vendors of your new account number if they have it on file.