Yes, you can open a business bank account — here's what banks actually require
You can open a business bank account at most banks and credit unions, but the bank will ask for specific documents before they let you. The exact requirements depend on your business structure — a sole proprietorship needs different paperwork than an LLC or corporation — and which bank you choose. Some banks will open an account the same day; others take a week or longer to verify your information.
The process is straightforward if you have the right documents ready. You'll need to prove your business exists, show your legal right to open the account, and provide personal identification. Banks also run background checks and verify your tax ID number before finalizing the account.
Key Takeaways
- Sole proprietors can open a business account with just a Social Security number and ID, though some banks ask for a DBA filing or business license.
- LLCs and corporations must provide their formation documents (Articles of Organization or Articles of Incorporation) and an Employer Identification Number (EIN) from the IRS.
- You will need a government-issued ID, your Social Security number or EIN, and proof of your business address to complete the account opening.
- Banks typically verify your information within one to seven business days, though some offer same-day approval for straightforward applications.
- Different banks have different minimum balance requirements and monthly fees, so comparing options before you apply saves money over time.
What documents you need based on your business structure
Sole proprietors have the simplest path. You can open an account using your Social Security number and a government-issued ID. Many banks will accept this alone. However, some banks — particularly larger ones — ask for a DBA (Doing Business As) certificate or a business license to confirm the business name is registered with your state or local government. If your bank asks for one and you don't have it, you can usually obtain a DBA filing through your county clerk's office or state business portal for a small fee, often under $50.
LLCs and corporations need more documentation. Bring your Articles of Organization (for an LLC) or Articles of Incorporation (for a corporation) — the legal document filed with your state when you formed the business. You also need an Employer Identification Number (EIN), which the IRS assigns to your business. You can get an EIN for free at irs.gov by filling out Form SS-4 online; the IRS issues it immediately. Some banks will let you open an account with an EIN application in progress, but most want the actual EIN before they finalize the account.
Partnerships require Articles of Partnership or a partnership agreement, plus an EIN. If your partnership is registered with your state, bring that registration document as well.
Personal identification and address verification
Every bank will ask for a government-issued photo ID — a driver's license, passport, or state ID card. They use this to verify your identity and run a background check. Bring the original document; banks do not accept photocopies for this step.
You'll also need to prove your business address. This can be a lease, a utility bill in the business name, a property deed, or a mail receipt showing the business address. If you work from home, a utility bill or lease in your personal name at that address usually works. Some banks accept a recent business license or registration document that lists the address.
Have your Social Security number or EIN ready. The bank uses this to check your credit history and verify you're not on any government exclusion lists. If you're opening the account as a sole proprietor, you'll use your Social Security number; for LLCs and corporations, the bank will use the business EIN.
How long the process takes and what happens next
The timeline varies by bank. Some community banks and credit unions can open your account the same day if you walk in with all your documents. Larger national banks typically take three to seven business days to verify your information and activate the account. A few banks take up to two weeks if they need to order a debit card or conduct additional verification.
After you submit your documents, the bank will run a background check and verify your EIN with the IRS (if applicable). They'll also check you against the OFAC (Office of Foreign Assets Control) list, which screens for sanctions and criminal activity. This verification usually happens within 48 hours, though the bank may contact you if they need clarification on any information.
Once approved, the bank will issue you a debit card, checks, and online banking access. Some banks mail these items, which can add a few days to the timeline. Ask the bank whether you can access the account online before the physical card arrives — most allow this.
Minimum balances and monthly fees
Business bank accounts are not free. Most banks charge a monthly maintenance fee ranging from $10 to $30, though some waive the fee if you maintain a minimum balance — typically $500 to $2,500 — or set up direct deposit. A few banks and credit unions offer no-fee business checking, but these are less common and may have other limitations like fewer transactions per month.
Compare fees across banks before you open an account. A bank that charges $20 per month costs $240 per year; over five years, that's $1,200. If you can find an account with no monthly fee or a waived fee based on balance, the savings add up. Ask about fees for common services: wire transfers, ACH transfers, returned checks, and overdrafts. These can range from $5 to $35 per transaction.
What to bring to the bank
| For All Businesses | For Sole Proprietors Only | For LLCs and Corporations |
|---|---|---|
| Government-issued photo ID (original) | DBA certificate or business license (if the bank asks) | Articles of Organization or Incorporation |
| Social Security number or EIN | EIN from the IRS | |
| Proof of business address (lease, utility bill, or property deed) | Proof of business address | |
| Business name (if different from your personal name) |
If the bank denies your account
Banks can deny a business account for several reasons: a poor personal credit history, a history of overdrafts or fraud, being on the OFAC list, or incomplete or inconsistent documentation. If a bank denies you, ask them in writing why. They are required to tell you the specific reason.
If the issue is your credit history or past banking problems, try a credit union instead of a national bank. Credit unions often have more flexible policies and may overlook older negative marks. If the issue is documentation, fix it and try again at a different bank. If you're on the OFAC list by mistake, you can dispute it through the Treasury Department's website.
Some banks specialize in second-chance business accounts for people with past banking issues. These accounts may have higher fees or lower transaction limits, but they're a real option if mainstream banks turn you down.
Frequently Asked Questions
Do I need an EIN if I'm a sole proprietor?
No. As a sole proprietor, you can use your Social Security number to open a business account. However, getting an EIN is free and keeps your personal and business finances more separate for tax purposes. Many sole proprietors get an EIN anyway, even though it's not required.
Can I open a business account online without going to the bank?
Some banks let you start the process online, but most require you to verify your identity in person or through a video call before finalizing the account. A few online-only banks and fintech companies offer fully remote account opening, though they may have fewer features than traditional banks.
What if I don't have a business address yet?
You can use your home address as your business address when you open the account. If you later move the business to a commercial space, you can update the address with the bank. Some banks also accept a UPS mailbox or virtual office address, though you should confirm this with the bank first.
How much money do I need to open the account?
Most banks require an opening deposit of $25 to $100, though some have no minimum. This money goes into your account and counts toward any minimum balance requirement. Check with your bank about their specific opening deposit before you go in.
Can someone else open the account on behalf of my business?
Generally, no. The bank needs to verify the identity of the person who will control the account. If you're the owner, you need to be present. Some banks allow a business manager or accountant to help with paperwork, but the owner must still verify their identity in person or by video.