What you need before you walk into a bank
You will need an Employer Identification Number (EIN) from the IRS before most banks will open a business account. If you are a sole proprietor, you can use your Social Security number instead, but an EIN keeps your personal and business finances separate and is free to get. You can apply for an EIN online at irs.gov in about 15 minutes, and you receive it immediately.
Bring a government-issued photo ID, your EIN documentation (or the confirmation email if you just applied online), and proof of your business address. The address can be your home, a commercial space, or a virtual office — banks accept all three. You will also need to bring your business formation documents if you have them: articles of incorporation for an LLC or corporation, a partnership agreement, or a DBA (doing business as) certificate if you registered one with your state.
Some banks ask for a business plan or tax returns if your business is already operating. If you are brand new, they usually skip this. Have your expected monthly deposit volume ready to discuss — banks use this to recommend account types and set deposit limits.
Key Takeaways
- You need an EIN from the IRS (free, takes 15 minutes online) or your Social Security number if you are a sole proprietor.
- Bring a photo ID, your EIN confirmation, proof of business address, and any formation documents like articles of incorporation or a DBA certificate.
- Different banks have different minimum balances and monthly fees — compare three to five banks before opening, because switching later is expensive.
- The account opens the same day you visit in person, though it may take one to three business days for the account number and routing number to appear in your online portal.
Where to open the account: banks versus credit unions
Traditional banks (Chase, Bank of America, Wells Fargo, regional banks) offer the widest range of business services and the most locations. They usually have lower minimum balance requirements than they did five years ago — many now start at $0 to $500 — but they charge monthly maintenance fees that range from $10 to $30 unless you meet deposit thresholds. Online banks like Mercury, Brex, and Novo have no monthly fees and no minimum balance, but they do not offer in-person service or business loans.
Credit unions often have lower fees and better customer service for small businesses, but you have to be a member first. Membership usually requires living or working in a specific area or belonging to a certain profession. If you may have access to, credit unions typically charge $0 to $15 per month and have no minimum balance.
The choice depends on what you need: if you plan to deposit checks frequently or need a business credit card, a traditional bank or credit union with local branches makes sense. If you run a digital business and rarely handle paper checks, an online bank saves you money on fees.
Documents the bank will ask you to sign
You will sign a business account agreement, which is the contract between you and the bank. Read the section on fees, overdraft policies, and what happens if your account sits inactive. You will also sign a signature card that authorizes you to withdraw money and sign checks. If someone else will have access to the account, they sign a separate authorization form.
Some banks ask you to sign a beneficial ownership certification — this is a federal requirement that confirms who actually owns the business. It takes 30 seconds and is not a legal document, just a form the bank files with regulators.
If you are opening the account as an LLC or corporation, the bank may ask for a corporate resolution or certificate of good standing from your state. These prove the business legally exists and that you have the authority to open the account. You can get a certificate of good standing from your state's Secretary of State office for $5 to $25, and it arrives by mail in one to two weeks or instantly online in some states.
How long the account takes to open and when you can use it
The account opens the same day you visit the bank or complete the online application. You walk out with a temporary debit card or a card number you can use immediately. However, your official account number and routing number may not appear in your online banking portal for one to three business days.
This matters if you need to set up automatic payments or direct deposit right away. Ask the banker for your account and routing numbers before you leave — they can write them down for you even if the system has not updated yet. If you are opening online, call the bank's business line the next day and ask them to provide the numbers over the phone.
Checks usually take five to seven business days to arrive after you order them. Some banks offer temporary check printing through their online portal so you can start writing checks immediately, though this costs $5 to $10 per batch.
Fees and minimum balances across different account types
Most banks waive the monthly fee if you keep a certain balance or receive a certain amount in deposits each month. Ask the banker what the threshold is for your account type — it is often $2,500 to $5,000 in average daily balance, or $5,000 to $10,000 in monthly deposits. If you cannot meet it consistently, choose an account with a lower fee or switch to an online bank.
| Account Type | Typical Monthly Fee | Minimum Balance | Best For |
|---|---|---|---|
| Basic Checking | $10–$20 | $0–$500 | Sole proprietors and startups |
| Premium Checking | $20–$35 | $2,500–$10,000 | Businesses with higher monthly volume |
| Money Market | $15–$25 | $2,500–$25,000 | Businesses that want to earn interest on reserves |
| Online Bank Checking | $0 | $0 | Digital businesses with no check deposits |
The fees listed above vary by bank and change over time, so call or visit the bank's website to confirm current rates before you decide. Some banks also charge per-check fees, wire transfer fees, or overdraft fees that are not included in the monthly maintenance charge. Factor these into your decision if you plan to write many checks or send frequent wire transfers.
What happens after you open the account
Set up online banking and mobile app access the day you open the account. This takes five minutes and lets you check your balance, transfer money, and deposit checks by phone camera. Write down your username and password in a secure place — do not rely on your browser to remember it.
Order business checks if you need them, but do not order a huge quantity. Start with 200 checks so you can test them and make sure the bank printed your account number correctly. Reorder in smaller batches as you use them.
If you have employees or contractors, set up payroll and tax withholding through your bank or a payroll service like Gusto or ADP. Your bank can walk you through the process, or you can use a third-party service that integrates with your account. Do this before you pay anyone so you do not miss tax deadlines.
Review your account statement every month, even if it is just a quick scan. Look for unauthorized charges, duplicate deposits, or fees you did not expect. Banks sometimes charge fees that are not clearly explained, and catching them early makes it easier to dispute or switch accounts.
Frequently Asked Questions
Can I open a business account with just my Social Security number?
Yes, if you are a sole proprietor with no employees. You do not need an EIN. However, getting an EIN is free and takes 15 minutes, and it keeps your personal credit separate from your business finances. Most sole proprietors get one anyway for this reason.
What if I do not have a physical business address yet?
You can use your home address, a UPS store address, or a virtual office address. Banks accept all three. If you use a UPS store or virtual office, bring the receipt or agreement showing you have access to that address.
Do I need a business license to open a business bank account?
No. You need an EIN or Social Security number, a photo ID, and proof of address. A business license helps but is not required. Some banks ask for it if you are in a regulated industry like insurance or lending, but most do not.
How long does it take to get my first debit card?
You usually get a temporary card or card number the day you open the account. A physical debit card arrives by mail in five to seven business days. Some banks offer expedited shipping for $10 to $15 if you need it faster.
What is the difference between a business account and a personal account?
A business account is designed for business transactions and keeps your business finances separate from personal ones. Personal accounts are for individual spending. Using a personal account for business can complicate taxes and may void liability protection if you have an LLC or corporation.