Documents and information you'll bring to the bank
Most banks need the same core set of documents before they'll open a business account. Bring your Employer Identification Number (EIN) — the nine-digit tax ID the IRS assigns to your business. If you don't have one yet, you can get it free from the IRS website or by phone before you go to the bank. You'll also need a government-issued photo ID, usually your driver's license or passport.
Next, bring proof of your business structure. If you're a sole proprietor, that's often just your ID plus the EIN. If you're an LLC, partnership, or corporation, bring your Articles of Organization, Articles of Incorporation, or partnership agreement — whichever document your state issued when you registered the business. You can get a certified copy from your state's Secretary of State office if you don't have the original.
Some banks also ask for a Employer Identification Number (EIN) confirmation letter from the IRS, which proves the number is real and active. You can print this free from your IRS online account or request it by mail. A few banks will skip this if you show them the IRS assignment letter you received when you applied for the EIN.
Key Takeaways
- You need a government photo ID, your EIN, and proof of your business structure (Articles of Organization, Articles of Incorporation, or partnership agreement) to open most business accounts.
- Sole proprietors sometimes need only an ID and EIN, but LLCs, partnerships, and corporations must bring the formation documents your state issued.
- Banks vary in what they require — some ask for an IRS EIN confirmation letter, others don't, so call ahead to ask what to bring.
- If your business is brand new and you haven't registered it yet, you'll need to do that with your state before the bank will open an account.
- Some banks require a minimum opening deposit, which ranges from zero to several hundred dollars depending on the bank and account type.
Information about your business the bank will ask for
The bank will ask you to describe what your business does, how long it's been operating, and roughly how much money you expect to move through the account each month. They're not trying to pry — they're required by federal law to understand the nature of your business for anti-money-laundering compliance. Answer honestly and specifically. "Consulting" is less useful to them than "bookkeeping services for small retail shops."
You'll also need to tell them who owns the business and who has signing authority. If it's just you, that's straightforward. If there are multiple owners or managers, the bank will want to know who can sign checks and make transfers. Some banks require all owners to be present; others let one person open the account on behalf of the business if they bring a resolution or power of attorney document signed by the other owners.
Minimum deposits and account fees
Whether you need money in the account before you open it depends on the bank and the account type. Many banks have no minimum opening deposit — you can open the account with zero dollars. Others require $100 to $500 to activate the account. A few business accounts aimed at larger companies ask for $2,500 or more, but those are not common for new small businesses.
Ask about monthly fees, per-check fees, and transaction limits before you commit. Some banks charge $10 to $30 per month for a basic business checking account. Others waive the fee if you keep a minimum balance or set up direct deposit. Online banks often have lower or no monthly fees but may charge you if you need to deposit cash frequently.
What happens if your business is brand new
If you haven't registered your business with your state yet, you'll need to do that first. The process varies by state and business type — a sole proprietor might just need to file a DBA (Doing Business As) form, while an LLC requires filing Articles of Organization. This usually takes a few days to a few weeks depending on whether you file online or by mail and how busy your state's office is.
Once your state issues your formation documents or DBA certificate, take that to the bank along with your EIN and ID. Some banks will open an account for a business that's only a few days old; others prefer to see that the registration has been processed and recorded. If you're in a hurry, call the bank first and ask whether they'll accept a filing confirmation email from your state or if they need the official certificate in hand.
Sole proprietors and the personal account question
You can technically run a sole proprietorship through your personal bank account, but most accountants and tax professionals recommend against it. Mixing personal and business money makes tax time harder and can create problems if you're ever audited — the IRS expects to see a clear separation. A business account costs little and makes record-keeping much simpler.
Some banks won't open a business account for a sole proprietor without an EIN, though many will. If a bank turns you down, it's usually because they want the EIN for compliance reasons. Getting an EIN is free and takes about 15 minutes online, so it's worth doing even if you're the only owner.
What to bring if you're opening an account for someone else
If you're opening a business account but you're not the owner — for example, you're a manager or bookkeeper acting on behalf of the business — bring a document that proves you have authority to do so. This is usually a corporate resolution (for corporations), a member authorization letter (for LLCs), or a power of attorney signed by the owner or owners. The bank will keep a copy for their records.
The owner should still be present if possible, but if they can't be, the authorization document is what lets you move forward. Some banks will call the owner to confirm before opening the account, especially if the authorization is new or unusual.
After you open the account
Once the account is open, the bank will give you checks, a debit card, and online banking access. Ask about setting up ACH transfers (electronic payments to and from other accounts) and wire transfer limits. If you plan to accept credit card payments, ask whether the bank offers merchant services or can refer you to a processor.
Keep your account documents in a safe place — you'll need the account number and routing number for tax filings, payroll setup, and vendor payments. If you're hiring employees, you'll also need this information to set up payroll withholding and tax deposits.
Frequently Asked Questions
Can I open a business account without an EIN?
Some banks will let you open an account using your Social Security number if you're a sole proprietor, but most require an EIN. Getting one is free and takes about 15 minutes online at the IRS website, so it's worth doing before you go to the bank. It also separates your personal and business finances more clearly for tax purposes.
What if I don't have my Articles of Organization yet?
You'll need to register your business with your state first. For an LLC, that means filing Articles of Organization; for a corporation, Articles of Incorporation. This usually takes a few days to a few weeks depending on your state and whether you file online. Once you have the state's confirmation, take it to the bank along with your EIN and ID.
Do I need to bring all owners to open the account?
It depends on the bank. Some require all owners to be present; others let one owner open the account if the others sign a resolution or authorization letter. Call the bank ahead of time and ask what they need. If you can't get everyone there, bring a signed document that shows the other owners approve the account opening.
What's the difference between a business account and a personal account?
A business account is designed to handle multiple transactions, employees, and tax reporting. It usually costs more per month but offers features like merchant services, higher transaction limits, and clearer records for tax filings. A personal account is cheaper but mixing business and personal money in it makes accounting harder and can complicate tax returns.
Can I open a business account online?
Some banks let you open a business account entirely online, while others require you to visit a branch or talk to someone by phone. Online banks are often faster and cheaper, but they may not accept cash deposits or offer the same services as a traditional bank. Check with the bank you're interested in to see what their process is.