What you need before you walk in

A business checking 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.

If you are a sole proprietor operating under your own name, you typically need a government-issued ID and your Social Security number. If you operate under a trade name (doing business as, or DBA), you need the DBA registration from your county or state, plus your ID and Social Security number. For an LLC, partnership, or corporation, you need the formation documents filed with your state — usually the Articles of Organization or Articles of Incorporation — plus an Employer Identification Number (EIN) from the IRS.

Most banks also ask for a business license or permit from your city or county, though some waive this if you have your formation documents. Call the bank's business banking line before you go in and ask exactly what they need for your structure; requirements vary by institution and by state.

Key Takeaways

  • You must bring proof of your business structure — a DBA registration for a sole proprietorship, or formation documents (Articles of Organization or Incorporation) for an LLC or corporation.
  • An EIN from the IRS is required for most business structures except sole proprietorships operating under the owner's name.
  • Different banks have different minimum balance requirements and monthly fees; comparing three to five banks before opening saves money over time.
  • The account opening process typically takes 15 to 30 minutes in person, or one to three business days if you open online.

Getting an EIN if you do not have one yet

An Employer Identification Number is a nine-digit identifier the IRS assigns to your business. You need one if you have employees, operate as an LLC or corporation, or plan to file business taxes separately from your personal return. Sole proprietors without employees can use their Social Security number instead, but many banks prefer an EIN anyway.

You can get 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. Once you have the number, the IRS will mail you a confirmation letter, but the number itself is valid as soon as you receive it online.

Comparing what different banks charge

Business checking accounts vary widely in monthly fees, minimum balance requirements, and what services are included. Some banks charge $10 to $25 per month with no minimum balance. Others charge nothing monthly but require you to maintain $2,500 to $10,000 in the account. A few waive fees if you meet conditions like direct deposit or a minimum number of debit card transactions per month.

Before opening an account, check the fee schedule for at least three banks — your current personal bank, a second large bank, and a credit union or online bank. Ask specifically about: monthly maintenance fees, per-check fees if you write many checks, wire transfer fees, overdraft fees, and whether the minimum balance is a daily balance or an average balance. The cheapest option for a business that writes 50 checks a month is different from one that writes five, so know your own habits first.

Many banks offer the first few months free or waive fees for the first year. Ask whether that offer applies to you and what happens when the promotional period ends.

Opening the account in person versus online

Opening in person at a branch takes 15 to 30 minutes. You bring your documents, the banker verifies them, you sign the account agreement, and you leave with a debit card and temporary checks. This route is fastest if you need to start writing checks immediately.

Opening online takes one to three business days. You upload photos of your documents, answer questions about your business, and sign electronically. The bank verifies your information and mails you a debit card and checks. You can usually start using the account (for transfers and bill pay) before the physical card arrives, but you cannot write checks until you receive them.

If your bank is local and you want to ask questions face-to-face, go in person. If you prefer not to visit a branch or your bank has no nearby location, online opening works just as well — just plan for the three-day wait if you need checks right away.

What happens after you open the account

Once the account is open, you can set up direct deposit, automatic bill pay, and transfers from your personal account. Most banks provide online banking and a mobile app where you can check your balance, deposit checks by phone camera, and download statements.

If you have employees, you will need to set up payroll, which usually means either using your bank's payroll service or a third-party payroll provider like ADP or Gusto. Your bank can walk you through the options. If you do not have employees yet, you can skip this step.

Keep your business and personal finances separate from day one — deposit all business income into this account and pay all business expenses from it. This separation makes tax time simpler and protects you if your business structure is an LLC or corporation.

What to do if a bank denies you

Banks sometimes deny business accounts because of a poor personal credit history, a history of overdrafts or fraud, or because they do not offer accounts for your type of business. If you are denied, ask the bank in writing why — they are required to tell you under the Fair Credit Reporting Act.

If the reason is your credit history, you can try a credit union or an online bank, which often have less strict requirements. If the reason is your business type (for example, some banks will not open accounts for cannabis businesses or certain financial services), you will need to find a bank that does serve that industry. A business banker at a different bank can tell you whether they work with your type of business before you apply.

Frequently Asked Questions

Do I need a business license before I open a checking account?

Not always. Most banks accept formation documents (like an LLC Articles of Organization) without a business license. Some banks do ask for a license or permit from your city or county. Call the bank's business line before you go in and ask what they need for your specific business structure.

Can I use my personal Social Security number instead of getting an EIN?

Yes, if you are a sole proprietor with no employees. However, many banks prefer an EIN because it keeps your business finances separate from your personal ones. Getting an EIN is free and takes 15 minutes online, so most business owners do it anyway.

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

If you open in person, you usually get temporary checks the same day and permanent checks within five to seven business days. If you open online, permanent checks arrive in five to ten business days. Some banks let you order checks from a third-party printer faster and cheaper than the bank's own checks.

What if I need to write checks before my account is fully set up?

Ask the bank for temporary checks when you open the account. If you open online, you can request expedited checks for a fee, or you can use bill pay or transfers to pay bills while you wait for physical checks to arrive.

Can I have multiple business checking accounts?

Yes. Some business owners keep separate accounts for different business lines or to isolate cash flow. Each account has its own fees and minimum balance, so compare the total cost before opening more than one.