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 your business structure — sole proprietorship, partnership, LLC, S-corp, or C-corp each have different requirements.

For a sole proprietorship, most banks need your Social Security number, a government-issued ID, and proof of your business name (a DBA certificate from your county clerk, or a business license). For an LLC or corporation, you will need your Employer Identification Number (EIN) from the IRS, articles of incorporation or organization, and an ID for each owner or authorized signer. Some banks also ask for a business license, a lease or utility bill showing your business address, and a recent business tax return if you have been operating for more than a year.

Call the bank before you go. Different banks have different document lists, and some require you to schedule an appointment rather than walk in. A few minutes on the phone saves a wasted trip.

Key Takeaways

  • You will need an EIN from the IRS for any business structure except a sole proprietorship, and you can request one free online at irs.gov in minutes.
  • Bring government-issued ID, proof of your business address, and your Social Security number or EIN depending on your business structure.
  • Different banks require different documents, so call ahead to confirm what yours needs before you visit.
  • Many banks offer introductory periods with no monthly fees, but fees and minimum balances vary widely, so compare a few options before you choose.
  • The account usually opens the same day, though it may take a few business days for your debit card and checks to arrive.

Getting your EIN if you do not have one

An Employer Identification Number is a nine-digit code the IRS uses to identify your business for tax purposes. If you are a sole proprietor with no employees, you can use your Social Security number instead, but most banks prefer an EIN because it keeps your personal and business finances separate on their records.

You can request an EIN free from the IRS at irs.gov/ein. The online application takes about 15 minutes and you receive your number immediately. You can also apply by phone (1-800-829-4933) or by mail, though those routes take longer. You do not need to have filed taxes or opened a business account yet — the IRS will issue an EIN as soon as you apply.

Once you have your EIN, write it down and keep it with your other business documents. You will need it not just for the bank account but for hiring employees, filing taxes, and applying for business licenses or permits.

Choosing between banks and account types

Business checking accounts are the most common choice because they let you deposit customer payments, pay bills by check or transfer, and keep records separate from your personal money. Business savings accounts work the same way as personal savings accounts — they earn interest but have limits on how many withdrawals you can make per month. Many owners open both: a checking account for daily operations and a savings account to set aside money for taxes or emergencies.

Large national banks like Chase, Bank of America, and Wells Fargo offer business accounts but often charge monthly fees ($15 to $25 is typical) and require minimum balances. Online banks like Mercury, Brex, and Novo charge lower or no monthly fees but may not offer in-person service or physical branches. Credit unions sometimes offer business accounts to members at lower cost than national banks, though membership requirements vary.

Compare at least three options. Look at the monthly fee, any minimum balance requirement, the cost per check, wire transfer fees, and whether the bank offers the services you actually need — for example, if you take credit card payments, some banks bundle that processing into their account while others charge separately.

Documents to bring on the day

Bring originals or certified copies, not photocopies. The bank will usually photocopy them for their file, but they need to see the originals to verify they are real.

For a sole proprietorship: your driver's license or passport, your Social Security number or EIN, and your DBA certificate or business license. If you do not have a DBA, some banks will let you use your legal name as the business name.

For an LLC or corporation: your driver's license or passport, your articles of incorporation or organization (the document you filed with your state to create the business), your EIN, and a business license if your state or city requires one. If there are multiple owners, bring ID for each person who will be an authorized signer on the account.

Bring proof of your business address: a lease, a utility bill, a mortgage statement, or a property tax bill. A PO box does not count. If you work from home, a utility bill or property tax bill in your name at that address works fine.

What happens during the appointment

The banker will verify your documents, ask you questions about your business (what you do, how long you have been operating, how much money you expect to deposit each month), and run a background check. They will also ask you to sign signature cards — documents that tell the bank which people are allowed to sign checks or authorize transfers from the account.

If you are opening the account in person, it usually opens the same day. The bank will give you temporary checks or a temporary debit card so you can use the account immediately. Your permanent debit card and checks arrive by mail in a few business days to a week.

If you open the account online, the process is faster — sometimes just 15 minutes — but you will have to wait for your debit card and checks to arrive by mail before you can use the account for most transactions. Some online banks let you use a temporary virtual card number while you wait.

Setting up online banking and transfers

Once your account is open, set up online banking so you can check your balance, deposit checks by phone camera, and transfer money without visiting a branch. The bank will give you a username and password, or you can set them up yourself on their website or app.

If you have a personal account at the same bank, you can usually link your business account to it for transfers. If your business account is at a different bank, you can set up transfers through the ACH system (Automated Clearing House), which is free but takes one to three business days. Wire transfers are faster — usually same-day — but cost $15 to $30 per transfer.

Many business owners also set up automatic transfers to a separate savings account on a fixed schedule (for example, 10 percent of deposits every Friday). This makes it easier to set aside money for taxes without having to remember to do it manually.

Common mistakes to avoid

Do not mix personal and business money in the same account. If you are sued or audited, commingling funds can make it harder to prove which expenses were business expenses, and it can expose your personal assets to business liability. A separate business account costs almost nothing and protects you.

Do not assume the cheapest account is the best one. A bank with no monthly fee but a $3 charge per check might cost you more than a bank with a $20 monthly fee if you write many checks. Calculate your actual costs based on how you plan to use the account.

Do not ignore the fine print about minimum balances. Some banks waive the monthly fee if you keep a certain amount in the account (often $1,000 to $5,000), but if your balance drops below that, they charge you. If you cannot reliably keep that balance, choose a bank with no minimum.

Frequently Asked Questions

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

Yes. Most banks will let you use your Social Security number instead of an EIN for a sole proprietorship. However, an EIN is free and takes 15 minutes to get online, and it keeps your personal and business finances more clearly separated on the bank's records. Many sole proprietors get an EIN anyway for this reason.

How long does it take to open a business account?

In person, usually the same day. Online, it can be as fast as 15 minutes, though your debit card and checks will take a few business days to arrive by mail. Some banks also require a one- to two-day verification period before the account is fully active.

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

Most banks do not require tax returns for a new business. Bring your articles of incorporation or organization, your EIN, and your ID. The banker may ask how much money you expect to deposit and what your business does, but they will not turn you down for being new.

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

It depends on your bank and your state. Some banks require a business license, others do not. Call the bank before you go. If your state or city requires a license for your type of business, you should get one anyway — it is usually inexpensive and takes a few days to a few weeks.

Can I have multiple authorized signers on the business account?

Yes. You can add as many authorized signers as you want. Each person will need to sign signature cards and provide ID. This is useful if you have employees or partners who need to pay bills or deposit checks on behalf of the business.