Documents and information you'll need before you walk in

Most banks want the same core set of documents: your business license or articles of incorporation, a federal Employer Identification Number (EIN) from the IRS, a government-issued photo ID, and proof of your current address. If you're a sole proprietor, some banks will let you use your Social Security number instead of an EIN, though having an EIN keeps your personal and business finances separate and is worth getting anyway — it's free from the IRS.

Beyond those basics, what you bring depends on your business structure. A sole proprietorship needs less paperwork than an LLC or corporation. An LLC requires your articles of organization (filed with your state). A corporation needs articles of incorporation and sometimes bylaws. A partnership needs the partnership agreement. If you're operating under a name that isn't your legal name, you'll need a "doing business as" (DBA) certificate from your county or state.

Bring your most recent tax return if you have one, and a business plan or description of what your company does — some banks ask this to verify you're not a high-risk industry. Have the names and Social Security numbers of all owners who hold more than 20 percent of the business; banks verify these against sanctions lists.

Key Takeaways

  • You need a government-issued photo ID, proof of address, your business license or articles of incorporation, and an EIN (or your Social Security number if you're a sole proprietor).
  • LLCs and corporations require additional documents like articles of organization or incorporation; sole proprietors need the least paperwork.
  • Banks verify owners against federal sanctions lists, so bring the names and Social Security numbers of anyone with more than 20 percent ownership.
  • Different banks have different minimum deposit requirements and fee structures, so compare accounts before opening — some waive monthly fees if you maintain a certain balance.
  • The whole process usually takes 15 to 30 minutes in person, or a few days if you apply online.

Getting your EIN if you don't have one yet

An EIN is a nine-digit number the IRS assigns to your business. You can get one free by filling out Form SS-4 on the IRS website, by phone, by fax, or by mail. The online route is fastest — you get your number immediately after you submit. By phone (1-800-829-4933), you get it the same day. By mail, it takes about four weeks.

You don't need to have filed taxes or incorporated yet to get an EIN. The IRS just needs your business name, the address where you'll operate, the type of business structure you have, and your personal information. If you're a sole proprietor using your Social Security number temporarily, you can still get an EIN later and switch over.

What banks check before they open your account

Banks run a background check on you and any owners through ChexSystems, a banking history database. They're looking for a history of overdrafts, fraud, or accounts closed for cause. If you've been flagged in ChexSystems, some banks will still open an account for you, but others won't. You can request your own ChexSystems report for free at chexsystems.com to see what's there before you apply.

Banks also verify your business structure by checking with your state's secretary of state office or the IRS. This is why you need the actual documents — they're confirming your business is real and registered. If your documents don't match what's on file with the state, the bank will ask you to clarify or bring updated paperwork.

Comparing account types and fees

Business checking accounts vary widely in what they cost and what they include. Some banks charge a monthly maintenance fee (typically $10 to $30) unless you maintain a minimum balance or set up direct deposit. Others charge per transaction — a fee for each check you write, each deposit you make, or each wire transfer. A few offer free checking with no strings attached, though these are less common.

Before you open an account, ask the bank about overdraft fees, wire transfer fees, and whether they charge to deposit checks by phone or mobile app. If you plan to deposit a lot of checks, ask whether they offer mobile check deposit and whether there's a limit on how many you can deposit per month. Some banks also offer a business savings account alongside checking; the savings account usually earns interest but has withdrawal limits.

Opening the account in person versus online

Opening in person at a branch takes 15 to 30 minutes. The banker will verify your documents on the spot, answer questions about fees, and you'll walk out with a debit card and account number. You can start using the account the same day.

Opening online is faster in some ways — you can do it at midnight — but slower in others. You upload photos of your documents, and the bank verifies them over the next few days. Some banks mail you a debit card; others let you use your account number immediately. The whole process usually takes three to five business days before your account is fully active. If the bank has questions about your documents, the process can stretch longer.

What happens after you open the account

Once your account is open, the bank will give you a routing number and account number. You'll use these to set up direct deposit, pay bills online, and receive payments from customers. Many banks offer a business portal where you can see your balance, download statements, and set up alerts if your balance drops below a certain amount.

If you're a sole proprietor, the bank may ask you to sign a personal may provide, meaning you're personally liable if the business account goes negative. This is standard. If you're an LLC or corporation, the bank usually won't ask for a personal may provide, though some smaller banks do.

Frequently Asked Questions

Can I open a business bank account without incorporating first?

Yes. Sole proprietors can open a business account with just a DBA certificate and an EIN (or Social Security number). You don't need to form an LLC or corporation first. However, having a separate business account as a sole proprietor is still a good idea because it keeps your personal and business finances clear for tax purposes.

What if I don't have a physical business address yet?

Most banks will let you use a home address, a virtual office address, or a UPS mailbox as your business address. Some banks have restrictions on mailboxes, so call ahead and ask. If you're using a home address, have a utility bill or lease in your name to prove you live there.

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

It depends on the bank and your industry. Some banks require a business license; others don't. If you don't have one yet, call the bank and ask what they'll accept instead — many will take your articles of incorporation or a DBA certificate. Your state or county business office can tell you whether your specific business type needs a license.

How much money do I need to deposit to open the account?

Minimum opening deposits vary by bank and account type. Some banks have no minimum; others require $100 to $500. A few business accounts require $1,000 or more. Ask the bank about their minimum before you apply, and ask whether the minimum is a one-time deposit or a balance you have to maintain every month.

What if the bank rejects my application?

Banks rarely reject outright, but they may ask for more information or documents. If they do decline, ask why — it may be a ChexSystems issue you can fix, or a document that didn't match their records. You can then apply at a different bank. Some banks specialize in accounts for businesses with complicated histories, so you have options.