Discover Bank does not offer business checking accounts
Discover Bank serves only personal banking customers. They do not have a business checking product, business savings account, or any account type designed for sole proprietors, partnerships, corporations, or other business entities. If you need a business checking account, you will need to open one at a different bank.
Discover's product line is limited to personal checking, personal savings, money market accounts, and certificates of deposit. All accounts require a personal Social Security number to open, and all are structured for individual use. This is a deliberate choice by Discover—they have chosen to focus on retail banking rather than expand into small business services.
Key Takeaways
- Discover Bank offers no business checking, business savings, or any account type for business use.
- All Discover accounts require a personal Social Security number and are designed for individuals only.
- If you operate a business and need a checking account, you will need to open one at a bank that offers business products.
- Some online banks and traditional banks offer business checking with low fees and no minimum balance requirements.
What Discover Bank does offer instead
Discover's personal checking account has no monthly maintenance fee, no minimum balance requirement, and no overdraft fees. It includes a debit card, online bill pay, mobile deposits, and access to a network of ATMs. The account earns a small amount of interest on the balance, which is unusual for checking accounts.
If you are self-employed and use a personal account to manage business finances, Discover's checking account will work for that purpose—but it will not give you the legal or accounting separation that a true business account provides. A business account typically comes with a tax ID number rather than a Social Security number, which matters for tax reporting and liability protection.
Where to open a business checking account instead
Online banks like Square Cash, Stripe, and Mercury offer business checking accounts with no monthly fees and low or no minimum balances. Traditional banks like Chase, Bank of America, and Wells Fargo offer business checking, though they often charge monthly fees ($10 to $25) unless you maintain a minimum balance or set up direct deposit.
Credit unions in your area may also offer business checking accounts, sometimes with lower fees than national banks. You can search for credit unions near you through the CO-OP Network or Alliant Credit Union's shared branching directory. Most business checking accounts require an EIN (Employer Identification Number) from the IRS, a business license, and a signed copy of your business formation documents (articles of incorporation, partnership agreement, or sole proprietorship registration).
The difference between personal and business checking
A business checking account separates your personal finances from your business finances, which is important for tax reporting and liability protection. The IRS expects businesses to have a separate account, and mixing personal and business money in one account can complicate your taxes and potentially expose your personal assets if the business is sued.
Business checking accounts also come with features designed for business use: the ability to deposit checks made out to your business name, the option to add authorized signers or employees, higher transaction limits, and sometimes merchant services or payment processing. Personal accounts like Discover's do not offer these features.
What you need to open a business checking account
Most banks require the following to open a business checking account: a business license or registration document, an EIN (Employer Identification Number) from the IRS, a government-issued ID for the owner or authorized signer, and proof of address (a utility bill or lease dated within the last 60 days). Some banks also require a copy of your business formation documents—articles of incorporation for a corporation, a partnership agreement for a partnership, or a DBA (Doing Business As) certificate for a sole proprietorship.
If you do not yet have an EIN, you can request one from the IRS online at irs.gov/ein. The process takes about 15 minutes, and you receive your number immediately. If you are a sole proprietor, you can use your Social Security number as your EIN, though most banks prefer you to have a separate EIN for business accounts.
Fees and minimums to compare
Business checking account fees vary widely. Some online banks charge no monthly fee and no minimum balance. Traditional banks often charge $10 to $25 per month unless you maintain a minimum balance (usually $1,000 to $5,000) or set up direct deposit. Some banks waive fees if you also use their merchant services or credit card processing.
When comparing accounts, look at the monthly maintenance fee, per-check fees (if any), wire transfer fees, overdraft fees, and whether the bank charges for ACH transfers or bill pay. Many online banks have eliminated these fees entirely, so a traditional bank's fee structure may not be competitive.
Frequently Asked Questions
Can I use my Discover personal checking account for my business?
Technically yes, but it is not recommended. Discover's terms of service allow personal accounts to be used for sole proprietorships, but you lose the legal and accounting separation that a business account provides. For tax purposes and liability protection, a separate business account is better.
Do I need an EIN to open a business checking account?
Most banks require an EIN, though some allow sole proprietors to use their Social Security number. If you are a corporation, partnership, or LLC, you must have an EIN. You can request one from the IRS at irs.gov/ein in about 15 minutes.
What is the cheapest business checking account?
Online banks like Mercury, Square Cash, and Stripe offer business checking with no monthly fees and no minimum balance. Traditional banks typically charge $10 to $25 per month unless you meet balance or deposit requirements. The cheapest option depends on how many transactions you make and whether you need in-person branch access.
Can I add employees to a business checking account?
Yes, most business checking accounts allow you to add authorized signers or employees. Discover's personal accounts do not have this feature. When you open a business account, ask the bank about their policy on additional signers and whether they charge a fee for each one.
How long does it take to open a business checking account?
Online banks can open an account in minutes to a few hours. Traditional banks usually take one to three business days. You will need your business license, EIN, government ID, and proof of address ready before you start the process.