What you need before you open a business bank account
A business bank account separates your personal money from your business money, which protects you legally and makes tax time simpler. Most banks will open one for you in a single visit or online session, but they need specific documents first. The exact list depends on your business structure — sole proprietorship, LLC, S-corp, or partnership — and the bank you choose.
Start by gathering your Employer Identification Number (EIN), which the IRS issues free. 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 separate. You can get an EIN online at irs.gov in minutes, or by phone or mail if you prefer.
Next, collect your government-issued ID (driver's license or passport), your Social Security number or EIN, and proof of your business address. A utility bill, lease, or mortgage statement dated within the last 60 days usually works. If your business is registered with your state, bring that registration document — called a Certificate of Good Standing, Articles of Organization, or similar depending on your state and business type.
Key Takeaways
- You will need an EIN (or your Social Security number if you are a sole proprietor), a government ID, and proof of your business address before any bank will open an account.
- Sole proprietors can open an account under their own name, while LLCs and corporations usually need to register with the state first and bring that registration document.
- Banks vary widely on fees, minimum balances, and which business structures they accept, so compare at least two or three before you choose.
- The whole process typically takes one visit or one online session, though some banks mail you the debit card and checks separately.
Sole proprietor accounts versus LLC and corporate accounts
If you operate as a sole proprietor — meaning you have not registered a separate business entity with your state — you can open a business account under your own name using just your Social Security number. You still need your ID and proof of address. This is the fastest route and requires no paperwork beyond what you already have.
If you have formed an LLC, S-corp, C-corp, or partnership, the bank will ask to see your state registration document before opening the account. This is usually called Articles of Organization (for LLCs), Articles of Incorporation (for corporations), or a Partnership Agreement. The bank needs this to confirm that the business entity legally exists and that you have authority to open an account on its behalf.
Some banks also ask for a Resolution or Certificate of Authority — a document signed by the business owner or board stating who is authorized to manage the account. Not all banks require this, so ask when you call or visit. If they do and you do not have one, you can create a simple one yourself or ask your accountant or lawyer to draft it.
Where to open the account: banks versus credit unions
Traditional banks, online banks, and credit unions all offer business accounts, and the choice affects your fees, minimum balance requirements, and access to services. Large national banks like Chase, Bank of America, and Wells Fargo have many branches and offer a full range of business services, but often charge monthly fees ($10 to $25 is common) and require minimum balances of $500 to $2,500.
Online banks like Mercury, Brex, and Novo typically charge no monthly fees and have no minimum balance, but they do not have physical branches. If you need to deposit cash or checks frequently, this matters. Some online banks partner with ATM networks or other banks to let you deposit checks through their apps.
Credit unions often charge lower fees than traditional banks and may offer better rates on business loans later, but membership requirements vary. You may need to live or work in a certain area, work in a certain industry, or be part of a specific organization. Ask your local credit union whether you are may be able to access before you visit.
Documents to bring or upload
| Document | Sole Proprietor | LLC or Corporation | Where to get it |
|---|---|---|---|
| Government ID | Yes | Yes | Driver's license or passport |
| Social Security number or EIN | Yes (either works) | Yes (EIN required) | irs.gov for EIN; you already have your SSN |
| Proof of business address | Yes | Yes | Utility bill, lease, or mortgage statement (within 60 days) |
| State registration document | No | Yes | Your state's Secretary of State office website |
| Resolution or Certificate of Authority | Usually no | Sometimes | You create it or ask your accountant |
Opening the account in person or online
Most banks let you open a business account either way. In person, you walk into a branch with your documents, meet with an account representative, and they verify everything on the spot. You usually leave with a temporary debit card or card number, though the physical card and checks arrive by mail in 5 to 10 business days.
Online, you upload photos of your documents, answer questions about your business, and the bank reviews everything remotely. This takes longer — typically 2 to 5 business days — because the bank cannot verify your ID in real time. Some banks ask you to verify your identity by video call or by answering security questions. Once approved, your debit card and checks ship separately.
Either way, have your documents ready and organized before you start. If you are opening online, take clear photos of both sides of your ID and your proof of address. If the photo is blurry or cut off, the bank will ask you to resubmit, which delays approval.
Fees and features to compare
Business accounts vary widely in cost and what they include. Monthly maintenance fees range from $0 to $25 or more. Some banks waive the fee if you keep a minimum balance or maintain a certain number of transactions per month. Check deposit limits, wire transfer fees, and whether the bank charges for ACH transfers (electronic payments to other accounts).
Ask whether the account includes a business debit card, checks, and online banking with bill pay. Some banks charge extra for checks or limit the number you can order free each year. If you plan to accept credit card payments from customers, ask whether the bank offers merchant services and what the rates are — this can vary significantly.
If you think you might need a business loan or line of credit later, ask whether the bank offers those and what the terms are. Building a relationship with your bank now can make borrowing easier when you need it.
After your account opens: next steps
Once your account is active, set up online banking and enable two-factor authentication for security. Download the bank's mobile app if it has one, so you can check your balance and deposit checks remotely. Many business accounts let you photograph a check and deposit it through the app within minutes.
If you have employees, ask your bank about payroll services. Some banks offer payroll processing directly, while others partner with third-party providers like ADP or Gusto. Payroll through your bank can be simpler because the money moves directly from your business account.
Set up a system to track your business expenses from day one. Keep receipts and categorize spending by type — supplies, equipment, mileage, meals — so tax time is easier. Many business owners use accounting software like QuickBooks or Wave (which is free) to connect their bank account and track spending automatically.
Frequently Asked Questions
Can I open a business account with just a Social Security number?
Yes, if you are a sole proprietor and have not registered a separate business entity with your state. You will still need your government ID and proof of your business address. If you have formed an LLC or corporation, you need an EIN instead.
How long does it take to open a business account?
In person, usually 30 minutes to an hour, and you can use the account the same day. Online, it typically takes 2 to 5 business days for the bank to review your documents and approve the account. Your debit card and checks arrive by mail separately, usually within 5 to 10 business days.
Do I need a separate business address, or can I use my home address?
You can use your home address. The bank just needs proof that you actually use that address — a utility bill, lease, or mortgage statement dated within the last 60 days. If you rent a mailbox or use a virtual office address, bring the agreement or receipt showing you have access to that address.
What if my bank asks for a Certificate of Authority and I do not have one?
You can create one yourself using a template (search "Certificate of Authority template" for your state), or ask your accountant or lawyer to draft one. It is a simple document stating who is authorized to open and manage the account. Some banks accept a notarized version; others do not require notarization.
Can I use a business account for personal expenses?
Legally, you can, but it defeats the purpose of having a separate account. Mixing personal and business money makes taxes harder to file and can create legal problems if your business is sued. Keep the accounts separate so your personal assets stay protected.