What you need before you start

Most banks let you open a business account online without visiting a branch, but they will ask for specific documents before you finish. You cannot complete the process with just an idea — the bank needs proof that your business exists in some form.

Have these items ready: your Social Security number or Individual Taxpayer Identification Number (ITIN), a government-issued photo ID, your business name, your business structure (sole proprietorship, LLC, S-corp, C-corp, partnership), and your Employer Identification Number (EIN) if you have one. If you do not have an EIN yet, some banks will let you open the account using your Social Security number temporarily, then add the EIN later. Others require the EIN before you proceed.

You will also need a business address — a physical street address, not a mailbox. If you work from home, you can use your home address. Some banks ask for a business phone number; if you do not have a dedicated line, your personal number usually works during the startup phase.

Key Takeaways

  • You need your Social Security number, photo ID, business name, business structure, and either an EIN or willingness to use your SSN temporarily.
  • The online application takes 15 to 30 minutes, but verification can take one to three business days before your account is active.
  • Some banks verify your identity instantly through digital tools; others mail a verification code or call you.
  • You can fund the account immediately after approval, usually by transferring money from a personal bank account or depositing a check.
  • Banks differ on minimum opening deposits and monthly fees, so compare options before you commit.

Steps to complete the online application

Start by choosing a bank that offers online business account opening. Most national banks (Chase, Bank of America, Wells Fargo, Citibank) and many online banks (Mercury, Brex, Novo, Lemonade) let you open entirely online. Regional banks vary — some offer it, some require a branch visit.

Go to the bank's website and look for "Open a Business Account" or "Business Banking." You will enter your business name, structure, and address. The form will ask whether your business is new or established; answer honestly, as this affects what documents the bank requests next. Then enter your personal information: name, date of birth, Social Security number, and address.

Upload or photograph your government ID — a driver's license or passport. The bank's system will read it automatically or a person will review it. If you have an EIN, enter it. If not, leave that field blank and note that you will provide it later. Some banks ask you to confirm your business structure by uploading articles of incorporation, an LLC operating agreement, or a DBA certificate; others skip this step for sole proprietorships.

Review the account terms, including monthly fees, minimum balance requirements, and transaction limits. Then submit. The bank will send you a confirmation email with next steps.

How identity verification works and how long it takes

After you submit, the bank verifies your identity. The method depends on the bank and what information you provided. Some banks use instant digital verification — they check your Social Security number and ID against databases in real time, and your account opens within minutes. Others use a slower method: they mail a verification code to your business address, or they call you to confirm details.

If the bank mails a code, expect it to arrive in three to seven business days. You enter the code on the bank's website to complete verification. If they call, answer and confirm your information when they reach you — missing the call can delay things by days.

A few banks ask you to make two small deposits (usually under $1 each) to a personal account they provide temporarily, then confirm the amounts. This takes one to two weeks and is less common now, but some regional banks still use it.

Once verification is complete, your account is active. You can log in, set up transfers, and deposit checks immediately. Debit cards usually arrive in five to ten business days.

Funding your new account

You can fund the account as soon as it is active, even if your debit card has not arrived. The fastest method is an electronic transfer from your personal bank account at the same bank or a different one. If both accounts are at the same bank, the transfer is instant. If they are at different banks, it takes one to three business days.

You can also deposit a check by photographing it through the bank's mobile app (mobile deposit) or mailing it to the address the bank provides. Mobile deposit usually clears within one business day; mailed checks take five to seven business days.

Some banks offer a temporary debit card number you can use online before the physical card arrives, so you can start paying vendors immediately if needed.

What happens if verification stalls or fails

If the bank cannot verify your identity online, they will contact you — usually by phone or email — to ask for more information. Common reasons include a mismatch between your ID and the name you entered, an address that does not match their records, or a Social Security number that does not verify. This does not mean you cannot open the account; it means the process moves to a person who reviews your documents manually.

If you get stuck, call the bank's business banking phone line. Have your ID and Social Security number ready. The representative can often resolve the issue in one call by confirming details or requesting a specific document. If the bank denies your application, they will tell you why in writing — usually because of a credit issue, a mismatch in identity information, or a problem with your business structure documentation.

If you were denied, you can reapply at a different bank. Not all banks use the same verification systems, so one bank's denial does not mean another will reject you.

Comparing banks and account types

Business accounts vary by bank and by account type within the same bank. A basic checking account for a sole proprietorship usually has no minimum opening deposit and no monthly fee. An LLC or corporation account may require a minimum balance ($500 to $2,500 is common) or charge a monthly fee ($10 to $30) if you do not maintain that balance.

Online banks like Mercury and Novo typically have no monthly fees and no minimums. Traditional banks like Chase and Bank of America charge monthly fees ($15 to $25) unless you maintain a minimum balance or set up direct deposit. Credit unions often have lower fees but may require membership in the credit union first.

Consider what you actually need: basic checking and transfers, or do you need merchant services (credit card processing), payroll tools, or lending? Some banks bundle these; others charge extra. If you only need a place to deposit checks and pay bills, a basic online account is usually cheapest. If you plan to process credit cards or run payroll, compare banks that offer those services built in.

After your account opens: next steps

Once your account is active, set up your business address with the bank if you have not already. Then add your EIN if you opened using your Social Security number — most banks let you do this through their website or by calling.

Set up bill pay if you plan to pay vendors or rent by check. Most banks offer this free. Link your business account to accounting software (QuickBooks, FreshBooks, Wave) if you use it — this saves time on reconciliation.

Order checks if you need them, though many businesses now pay electronically. If you do order checks, the bank will mail them to your business address; this takes one to two weeks.

If you have employees or plan to hire them, ask the bank about payroll services. Some banks offer this free or at a low cost; others refer you to a third-party provider.

Frequently Asked Questions

Can I open a business account if my business is not registered yet?

Yes, most banks let you open an account for a sole proprietorship using just your Social Security number and business name, even if you have not filed paperwork. For an LLC or corporation, you typically need to show that it is registered with your state — this means having articles of incorporation or an LLC operating agreement. If you have not registered yet, you can register first (usually online through your state's Secretary of State website in one to three days) and then open the bank account.

What if I do not have an EIN yet?

You can open the account using your Social Security number and add the EIN later. Apply for an EIN free through the IRS website (irs.gov) — you get it instantly if you apply online. Once you have it, call the bank or log into your account and update it. This takes five minutes.

Do I need a separate business account if I am a sole proprietor?

Legally, no — you can use your personal account. But the IRS and your accountant strongly recommend a separate account because it makes tax time easier and shows the IRS you treat your business as separate from your personal finances. A separate account also protects you if your business is ever sued.

How much do I need to deposit to open the account?

Most online banks require no opening deposit. Traditional banks often require $100 to $500 to open, though some waive this if you set up direct deposit. Check the bank's website for the specific account you want — the requirement is usually listed near the "Open Account" button.

Can I open a business account if I have bad credit?

Yes. Banks do not usually check your personal credit to open a business checking account. They check your Social Security number against banking history (ChexSystems) to see if you have had accounts closed for fraud or unpaid overdrafts. If you have a clean banking history, you can open an account regardless of credit score. If ChexSystems shows a problem, some banks will still open the account; others will deny it. If denied, try an online bank or credit union, which often have looser requirements.