What you need before you walk into a bank
A business bank account separates your personal money from your business money, which protects you legally and makes taxes much simpler. Before you contact a bank, you'll need to have decided what legal structure your business has — sole proprietorship, LLC, S-corp, C-corp, or partnership — because the bank will ask for proof of that structure.
The documents a bank will ask for depend on your business type. If you're a sole proprietor, you'll typically need your Social Security number, a government-issued ID, and proof of your business name (which might be a DBA certificate from your county, or just your own name if you're operating under it). If you have an LLC or corporation, you'll need your Employer Identification Number (EIN) from the IRS, your Articles of Organization or Articles of Incorporation, and an ownership document that shows who owns the business.
You'll also need to bring a current address, a phone number, and sometimes proof of address — a utility bill or lease in your name usually works. Some banks ask for a business plan or proof of income, especially if you're opening the account before you've made your first sale. Others don't. Call ahead and ask what your specific bank requires.
Key Takeaways
- You must know your business's legal structure (sole proprietor, LLC, corporation, or partnership) before opening an account, because the bank will ask for proof.
- Sole proprietors need an ID and Social Security number; LLCs and corporations need an EIN from the IRS and formation documents from your state.
- Different banks have different document requirements, so calling ahead saves you a trip back home for a missing paper.
- You can open an account online with many banks, but some require an in-person visit, especially if you're new to that bank.
- Monthly fees, minimum balances, and transaction limits vary widely, so comparing a few banks before you choose one can save you money over time.
Getting your EIN if you have an LLC or corporation
If your business is an LLC, S-corp, C-corp, or partnership, the IRS requires you to have an Employer Identification Number (EIN), even if you have no employees. You can get one free from the IRS website at irs.gov, and it takes about 15 minutes. You'll answer questions about your business type, location, and what you do, and the IRS will issue your EIN immediately on screen — you can print it or save it as a PDF.
If you're a sole proprietor operating under your own name, you can use your Social Security number instead of an EIN. If you're a sole proprietor with a business name (a DBA or "doing business as"), you still use your Social Security number for the bank account, though you may need to register the DBA name with your county or state first — requirements vary by location.
The IRS also allows you to request an EIN by mail or phone, but the online method is fastest. Once you have your EIN, write it down and keep it somewhere safe — you'll use it for your bank account, your taxes, and any business licenses you need.
Choosing between online and in-person account opening
Many banks now let you open a business account entirely online. You'll upload photos of your documents, answer questions about your business, and fund the account from another bank account you own. The process usually takes a few hours to a few days. Online opening works well if you have all your documents ready and your bank offers it.
Some banks, especially smaller regional banks and credit unions, require you to come in person. They want to see your documents, verify your identity, and sometimes discuss your banking needs. If you're new to the bank, they may require a visit even if you're opening a personal account online. Call the bank's business line and ask whether you can open online or whether you need an appointment.
A few banks offer a hybrid: you start online and finish in person. This can actually be helpful because it gives you time to gather any documents you're missing before your appointment.
What happens after you open the account
Once your account is approved, the bank will give you a routing number and account number. You'll use these to set up direct deposit for customers who pay you, to pay bills online, and to connect the account to accounting software if you use it. The bank will also issue you a debit card and checks if you want them, though many businesses now skip checks entirely.
Your first statement will arrive 30 to 60 days after you open the account, depending on the bank's cycle. Before then, you can log into your online banking portal and see every transaction. Most banks let you set up bill pay, transfers, and alerts through their website or mobile app.
If you need a business credit card or a line of credit later, having an established business bank account with a history of deposits and withdrawals makes those requests easier. The bank can see your cash flow and make faster decisions.
Comparing fees and minimum balances across banks
Business bank accounts are not all the same price. Some banks charge $10 to $25 per month; others charge nothing if you keep a minimum balance or maintain a certain number of transactions per month. Some charge per check, per transfer, or per deposit. A few charge nothing at all, with no strings attached.
Before you open an account, look at the fee schedule on the bank's website or ask a banker to walk you through it. Write down the monthly fee, any minimum balance requirement, the number of free transactions per month, and what each extra transaction costs. If you plan to make 50 deposits a month, a bank that charges per deposit will cost you more than one with unlimited deposits.
Online banks and credit unions often have lower fees than large national banks, but they may not offer in-person service or as many ATMs. National banks have more branches and ATMs, but higher fees. The right choice depends on how you plan to use the account.
Documents checklist by business type
| Business Type | Documents You'll Need |
|---|---|
| Sole Proprietor (Your Name) | Government ID, Social Security number, proof of address |
| Sole Proprietor (DBA) | Government ID, Social Security number, DBA certificate from county, proof of address |
| LLC | Government ID, EIN, Articles of Organization, proof of address, ownership document |
| S-Corp or C-Corp | Government ID, EIN, Articles of Incorporation, proof of address, ownership document |
| Partnership | Government ID, EIN, Partnership Agreement, proof of address, all partners' IDs |
What to do if the bank asks for more information
Some banks, especially larger ones, ask follow-up questions after you submit your initial application. They may want to know more about your business, your expected monthly deposits, or who the owners are. This is normal and not a sign that you've done something wrong. Answer the questions honestly and as completely as you can.
If the bank denies your account, they must tell you why. Common reasons include a mismatch between the name on your ID and the business name, a problem with your credit history (for some banks), or an issue with the documents you provided. If you're denied, ask the bank what you can fix and whether you can reapply. You can also try a different bank — different banks have different standards.
If you've been denied by multiple banks, a credit union may be more willing to work with you. Credit unions are member-owned and often have more flexible policies than banks.
Frequently Asked Questions
Do I need an EIN if I'm a sole proprietor?
No, not unless you have employees or want to. You can use your Social Security number instead. However, getting an EIN is free and takes 15 minutes, and some business owners prefer it for privacy — your Social Security number stays off business documents and bank records.
Can I open a business account if my business isn't registered yet?
It depends on the bank. Some will open an account for a sole proprietor with just an ID and Social Security number, even if you haven't filed any paperwork. Others want to see proof that your business is registered. Call the bank and ask what they need before you go in.
How long does it take to open an account?
Online accounts usually take a few hours to a few days. In-person accounts can be done the same day if you have all your documents. Some banks take longer if they need to verify information or if you're applying for additional services like a credit card at the same time.
What's the difference between a business checking account and a business savings account?
A checking account is for daily transactions — deposits, payments, and transfers. A savings account earns interest but usually limits how many withdrawals you can make per month. Most businesses open a checking account; some also open a savings account to set aside money for taxes or emergencies.
Can I use my personal bank account for my business?
Legally, you can, but it's risky. Mixing personal and business money makes taxes harder, can confuse the IRS, and may cost you legal protection if your business is sued. A separate business account costs little and protects you both legally and financially.