What you need before you walk in
You will need to bring proof that your business exists and proof of your identity. For a sole proprietorship, that means your Social Security number and a government-issued ID. For an LLC, corporation, or partnership, you need an Employer Identification Number (EIN) from the IRS — you can get one free online at irs.gov in about 15 minutes, and it arrives immediately.
You will also need a document showing your business name and structure. If you are a sole proprietor using your own name, a driver's license is enough. If you registered a business name with your state, bring that registration. If you formed an LLC or corporation, bring the articles of incorporation or organization — the document you filed with your state secretary of state.
Some banks ask for a business address that is not your home, though many now accept a residential address for sole proprietorships. Call ahead and ask what the bank requires before you go in. Bring your personal tax return from the past year if you are a sole proprietor; some banks request it, though it is not always mandatory.
Key Takeaways
- You need a government ID, proof your business exists (EIN for LLCs and corporations, or a business registration for sole proprietors), and your Social Security number.
- An EIN takes 15 minutes to get free from the IRS and arrives immediately; you do not have to wait for a paper copy to open an account.
- Most banks let you open an account in person or online, though in-person visits sometimes move faster if the bank has questions about your business.
- Monthly fees, minimum balances, and transaction limits vary widely by bank, so compare options before you choose.
- The whole process usually takes one to three business days from the time you submit your paperwork until the account is active.
Getting an EIN if your business is not a sole proprietorship
Go to irs.gov and search for "apply for an EIN online." You will answer questions about your business name, structure, location, and what you do. The form takes about 10 minutes. When you finish, the IRS gives you your EIN on screen immediately — write it down or take a screenshot.
You do not need to wait for a paper confirmation letter. Banks will accept the EIN you received online. If you want a paper letter later, you can request one from the IRS, but it is not required to open an account. Keep your screenshot or written note of the EIN because you will need it when you meet with the bank.
Opening the account in person versus online
Most banks offer both options. Opening online is faster if you have all your documents ready — you upload them, answer questions, and the account opens within one to three business days. You never speak to a person, which means there is no back-and-forth if the bank has questions about your business structure or income.
Opening in person takes longer on the day you visit — plan for 30 to 45 minutes — but the banker can answer questions on the spot and resolve issues immediately. If your business structure is unusual, if you have had banking problems in the past, or if you are unsure what documents to bring, in-person is often smoother. Call the bank first and ask if you need an appointment; most do.
What the bank will ask about
The bank needs to know your business name, structure (sole proprietor, LLC, S-corp, C-corp, partnership), what you do, and how much money you expect to move through the account each month. They will ask for your personal Social Security number and run a background check — this is standard and does not hurt your credit.
For sole proprietors, they may ask about your personal income or whether you have other income sources. For LLCs and corporations, they may ask about the owners and whether anyone else will have signing authority on the account. Be honest about what you expect the account to be used for. Banks are required to flag accounts that look like they might be used for illegal activity, but normal business use — even if it is high-volume — is not a problem.
Comparing fees and account types
Business checking accounts charge monthly fees that range from zero to $30 or more, depending on the bank and account type. Some banks waive the fee if you keep a minimum balance (often $1,000 to $5,000) or if you set up direct deposit. Some charge per transaction after a certain number of checks or transfers each month. A few banks offer free business checking with no minimums or transaction limits.
Before you open an account, visit the websites of at least three banks and compare their fee structures. Look at whether they charge for wire transfers, ACH transfers, or check deposits. Ask whether they offer a debit card and whether there is a fee for it. Some banks also offer merchant services (the ability to take credit card payments) built into the account, while others charge separately or do not offer it at all.
What happens after you submit your paperwork
If you opened online, the bank will review your documents within one to three business days. They may email or call if they need clarification on anything. Once they approve, you will receive an email with your account number and login information. You can start using the account immediately for transfers and bill pay, though checks and debit cards take a few more days to arrive.
If you opened in person, the banker will usually tell you on the spot whether you are approved. Your account opens that day, and you can start using it for transfers and bill pay right away. Checks and a debit card will be mailed to you within five to seven business days. Some banks offer temporary debit card numbers you can use online while you wait for the physical card.
Setting up payroll and tax payments
Once your account is open, you can set up automatic payments for taxes and payroll. If you have employees, you will need to set up payroll through your bank or a payroll service. If you are a sole proprietor or partner, you will make quarterly estimated tax payments to the IRS using the Electronic Federal Tax Payment System (EFTPS), which connects to your bank account.
Your bank will give you routing and account numbers you need for these payments. Write them down and keep them somewhere safe. You will also use these numbers if you set up automatic bill pay or if you want customers to pay you by ACH transfer.
Frequently Asked Questions
Can I open a business account if I do not have an EIN yet?
Yes, if you are a sole proprietor, you can use your Social Security number instead. However, if you have an LLC, corporation, or partnership, you need an EIN before you open the account. Getting one takes 15 minutes online at irs.gov, so it is worth doing first.
Do I need a separate business address or can I use my home?
Most banks now accept a home address for sole proprietorships and small LLCs. Call the bank before you go in to confirm. If you want a business address for privacy or professional reasons, you can rent a mailbox at a UPS Store or similar service — many banks accept these as business addresses.
What if the bank denies my application?
Banks can deny an account if you have unpaid overdrafts or fraud on your record, or if they cannot verify your identity. Ask the bank why you were denied — they are required to tell you. You can try another bank, or you can work with the bank to resolve the issue (like paying off an old overdraft) and reapply later.
How long does it take to receive checks and a debit card?
Checks usually arrive within five to seven business days. Debit cards take the same time, though some banks offer temporary card numbers you can use online immediately. If you need checks faster, ask the bank about rush printing — some offer it for a fee.
Can someone else sign checks or make withdrawals from my business account?
Yes, you can add authorized signers when you open the account or later. The bank will need their name, Social Security number, and ID. You decide whether each person can sign checks, make transfers, or both. You remain liable for anything they do on the account, so choose carefully.