What you need before you walk into a bank
A business bank account requires proof that your business exists as a legal entity separate from you personally. The exact documents depend on your business structure — sole proprietorship, LLC, S-corp, C-corp — and the bank you choose. Most banks will ask for your Employer Identification Number (EIN), which you get from the IRS, and a government-issued ID. Some will also want to see your business license or Articles of Organization.
If you are a sole proprietor operating under your own name, the process is simpler: you may only need your Social Security Number and a driver's license. If you have formed an LLC or corporation, you will need the EIN and the formation documents that prove the business is registered with your state. The bank uses these to verify that you have the authority to open an account on behalf of the business.
Bring originals or certified copies, not photocopies. Banks verify documents before opening the account, and they will not accept a copy unless it is certified by the issuing agency. If you do not have your EIN yet, you can apply for one online at irs.gov before you visit the bank — it takes about 15 minutes and you get a confirmation number immediately.
Key Takeaways
- You will need an Employer Identification Number (EIN) from the IRS if your business is structured as anything other than a sole proprietorship, and you can obtain one free online in minutes.
- Bring original or certified copies of your business formation documents — Articles of Organization, business license, or equivalent — along with a government-issued photo ID.
- Different banks have different requirements and fees, so calling ahead to ask what documents they need saves a wasted trip.
- The account opening process typically takes 15 to 30 minutes in person, though the account may not be fully active for one to three business days.
- Some banks offer introductory periods with no monthly fees for new business accounts, but fees vary widely and can range from $10 to $30 per month after that period ends.
Getting your EIN if you do not have one yet
An EIN is a nine-digit number the IRS assigns to your business for tax purposes. You can obtain one free of charge by going to irs.gov, finding the EIN application page, and filling out Form SS-4 online. The process takes about 15 minutes. You will be asked for your business name, address, the type of business structure, and the reason you need the EIN. At the end, the IRS gives you a confirmation number and displays your EIN on screen — you can screenshot it or write it down immediately.
If you prefer to apply by mail or phone, you can, but online is fastest. By mail, Form SS-4 takes about four weeks. By phone, you call the IRS Business and Specialty Tax Line and speak to a representative, which also takes about 15 minutes but requires you to have all your information ready before you call.
You do not need to wait for a formal EIN letter to arrive in the mail before opening your bank account. The confirmation number and the EIN itself are sufficient. Most banks will accept the screenshot or the number you write down, though some may ask you to provide the formal letter later.
Choosing a bank and what to bring
Not all banks offer business accounts, and those that do have different requirements and fee structures. Large national banks like Chase, Bank of America, and Wells Fargo offer business accounts but often have higher monthly fees and minimum balance requirements. Credit unions and smaller regional banks may have lower fees and more flexible requirements, but they may not offer the same online tools or branch network.
Before you visit, call the bank and ask what documents they need for your specific business structure. Ask also about monthly fees, minimum balance requirements, and whether they offer a fee-free introductory period. Some banks waive fees for the first three to six months if you maintain a certain balance or set up direct deposit. This information changes by bank and by location, so a five-minute phone call can save you a trip or prevent surprises later.
Bring: your government-issued photo ID, your EIN (or the confirmation number if you just obtained it online), your business formation documents (Articles of Organization, business license, or equivalent), and your Social Security Number. If you are opening the account on behalf of an LLC or corporation but are not the sole owner, bring documentation showing you have signing authority — this might be a corporate resolution or a copy of the operating agreement.
What happens during the account opening appointment
The bank representative will verify your identity and your business documents. They will ask you to sign signature cards, which authorize certain people to sign checks and conduct transactions on the account. If there are multiple owners or authorized signers, each person may need to sign in person or provide a notarized signature card. This step protects the bank and your business by creating a record of who can access the account.
You will also choose what type of business account you want. Most banks offer a basic checking account for businesses, but some offer tiered options with different features and fees. A basic account usually includes a debit card, online banking, and the ability to deposit checks. You may also be offered a savings account, merchant services (to accept credit card payments), or a line of credit, but these are optional.
The account opening itself takes 15 to 30 minutes. The bank will give you temporary checks or a debit card on the spot, though the account may not be fully active for one to three business days. You will receive login credentials for online banking, usually by email or on a printed receipt. Do not attempt to transfer money or write checks until the bank confirms the account is active.
After the account opens: setting up online banking and deposits
Once the account is active, log into online banking using the credentials the bank provided. Change your password to something only you know. Set up any recurring payments or transfers you need — for example, if you have a business loan, you may want to set up automatic payments. Most business accounts allow you to pay bills, transfer money between accounts, and deposit checks using a mobile app.
If you want to receive payments from customers, ask the bank about their deposit options. Remote check deposit (photographing checks with your phone) is standard at most banks. Some banks also offer ACH transfers, which allow customers to send money directly from their bank account to yours. Merchant services, which let you accept credit and debit cards, usually cost a small percentage of each transaction and may require a separate setup process.
Keep your business account separate from your personal account. This separation protects you legally — it shows the IRS and creditors that your business is a distinct entity — and makes tax time much simpler. Deposit all business income into the business account and pay all business expenses from it.
Common reasons banks deny business accounts
Banks may decline to open an account if your business formation documents are incomplete or if there are discrepancies between the documents and the information you provide. For example, if your Articles of Organization list a different business address than the one on your driver's license, the bank may ask for clarification or additional documentation. If the bank suspects the account will be used for illegal activity, they will refuse to open it.
Some banks also use ChexSystems, a banking history report similar to a credit report, to screen applicants. If you have had accounts closed due to fraud, unpaid overdrafts, or other issues, ChexSystems may flag you and the bank may deny the account. If this happens, ask the bank which issues are preventing approval and whether you can address them. Some banks specialize in accounts for people with banking history problems.
If a bank denies you, try another bank. Requirements and policies vary. A credit union or a smaller regional bank may have different standards and may be willing to open an account where a large national bank would not.
Fees and what to watch for
Business account fees vary widely. Some banks charge $10 to $15 per month; others charge $25 to $30. Many offer a fee-free period for new accounts — typically three to six months — if you meet certain conditions, such as maintaining a minimum balance or setting up direct deposit. After the introductory period ends, the monthly fee kicks in unless you meet the conditions to waive it.
Beyond the monthly fee, watch for per-transaction fees. Some banks charge for each check you deposit, each ACH transfer you make, or each wire transfer you send. If your business involves many small transactions, these fees can add up quickly. Ask the bank for a complete fee schedule before you open the account, and compare it to other banks. A bank with a higher monthly fee but no per-transaction fees may be cheaper than one with a low monthly fee but high transaction costs.
Overdraft fees are another common charge. If your account balance goes negative, the bank charges a fee — usually $25 to $35 per overdraft. Some banks allow you to link your business account to a personal account or a line of credit so that overdrafts are covered automatically, which may save you the fee.
Frequently Asked Questions
Can I open a business account if I am a sole proprietor and have not formed an LLC?
Yes. As a sole proprietor, you can open a business account using your Social Security Number instead of an EIN, though many banks will still ask for an EIN. You will need a government-issued photo ID and proof of your business address, such as a utility bill or lease. Some banks may ask for a business license if your state requires one.
Do I need to have a business license before I open a bank account?
It depends on your state and your business type. Some states require a business license before you can legally operate; others do not. Call your city or county clerk's office to find out whether you need one. Many banks will ask for a license if your state requires it, but some will open an account based on your formation documents alone. Ask the bank before you visit.
How long does it take for the account to be fully active?
The account is usually active within one to three business days. You may receive temporary checks or a debit card on the day you open it, but do not use them until the bank confirms the account is fully set up. You will typically receive an email or phone call when the account is ready to use.
What if I need to add another person as a signer on the account?
Contact the bank and ask about their process for adding authorized signers. Usually, the new signer must visit the bank in person with a government-issued photo ID and sign a signature card. Some banks allow you to add signers online, but most require an in-person visit. There may be a small fee for adding a signer, though many banks waive it.
Can I open a business account online without visiting a bank?
Some banks offer online account opening for business accounts, but most still require at least one in-person visit to verify your identity and documents. A few banks, particularly online-only banks, may complete the entire process remotely using video verification and digital document upload, but these are less common. Call the bank to ask whether they offer fully remote opening for your business type.