The core things to compare before you sign up
Before you open a business bank account, you need to know what the bank will charge you each month, what paperwork they require upfront, and whether their payment tools match how you actually run the business. Most banks charge a monthly maintenance fee (often $10 to $30), but some waive it if you keep a minimum balance or set up direct deposit. The difference between banks can cost you hundreds of dollars a year, so comparing these numbers first saves time later.
You also need to know whether the bank requires you to have an Employer Identification Number (EIN) from the IRS, or whether they will let you use your Social Security number instead. Some banks demand an EIN; others do not. If you have not yet obtained an EIN, this affects which banks you can use right now versus which ones you can use after you apply for one.
Key Takeaways
- Monthly maintenance fees range widely and can be waived by meeting balance or deposit requirements, so compare the actual cost across banks before opening.
- Some banks require an EIN from the IRS, while others accept a Social Security number, which matters if you have not yet obtained an EIN.
- Check whether the bank offers the payment tools you need — ACH transfers, wire transfers, online invoicing, or merchant processing — because not all business accounts include all of these.
- Verify the bank's overdraft policy and whether they charge per-transaction fees, because these costs add up quickly in a young business.
- Ask about the time it takes to open the account and whether you can do it online or must visit a branch, because some banks take days longer than others.
Monthly fees and when they disappear
Most business checking accounts charge a monthly maintenance fee between $10 and $30. The bank may waive this fee if you maintain a minimum balance (often $1,000 to $5,000), receive a certain amount in monthly deposits, or set up direct deposit of payroll. Some banks waive the fee for the first few months, then charge it later. Read the fee schedule carefully, because the lowest advertised rate may not be the lowest rate you actually pay.
Beyond the monthly fee, check for per-transaction charges. Some banks charge $0.50 to $1.50 for each ACH transfer you send out, or for each wire transfer. If you pay vendors or contractors regularly, these fees compound. A bank that charges $1 per ACH transfer and you send 20 transfers a month costs you an extra $240 a year. Other banks include unlimited ACH transfers in the monthly fee.
Overdraft fees also vary. Some banks charge $25 to $35 per overdraft; others charge less or do not charge at all if you link a savings account. Ask the bank directly what they charge and whether you can opt out of overdraft protection (which prevents the bank from covering overdrafts but also prevents the fees).
Paperwork and identification requirements
Every bank will ask for your business name, address, and the names of the owners. Most will also ask for a copy of your business license or articles of incorporation. If you are a sole proprietor, they may ask only for your Social Security number. If you are an LLC, partnership, or corporation, they usually require an EIN.
An EIN is a nine-digit number issued by the IRS that identifies your business for tax purposes. You can obtain one for free by filling out Form SS-4 on the IRS website or by calling the IRS. The process takes minutes online and the number is issued immediately. However, some banks will not open an account without an EIN if your business is structured as an LLC or corporation, so check this requirement before you choose a bank.
You will also need to bring a government-issued photo ID (driver's license or passport) and proof of your business address. Proof of address can be a utility bill, lease, or mortgage statement in the business name or your personal name. Some banks accept these documents online; others require you to visit a branch in person.
Payment and transfer tools you actually need
Not all business accounts include the same payment features. Before you open an account, list the ways you need to move money: paying vendors by check, sending ACH transfers to contractors, receiving wire transfers from clients, accepting credit card payments, or invoicing customers online. Then ask the bank which of these tools come with the account and which cost extra.
ACH transfers (electronic transfers between bank accounts) are standard in most business accounts, but some banks limit how many you can send per month or charge per transfer. Wire transfers are faster but usually cost $15 to $30 per wire. Merchant processing (accepting credit or debit cards) is rarely included in the base account and usually requires a separate application and monthly fees.
Online invoicing and payment collection tools are increasingly common but not universal. If you bill clients regularly, check whether the bank offers this feature or whether you will need to use a separate service like Square, PayPal, or FreshBooks. Using a separate service means money takes an extra day or two to reach your business account, and you pay a processing fee on top of the bank's fees.
How long it takes to open the account
Some banks open a business account in one business day if you apply online and have all documents ready. Others take three to five business days. A few require you to visit a branch in person, which adds time if the nearest branch is far away. If you need the account quickly — to deposit a client payment or meet a vendor deadline — ask the bank for their specific timeline before you start the application.
Online applications are faster than in-person visits, but they require you to upload documents (business license, ID, proof of address). Make sure you have these files ready before you begin. If the bank needs to verify anything, they may contact you by phone or email, which can add days to the process.
Comparing banks side by side
| Factor | What to Check | Why It Matters |
|---|---|---|
| Monthly fee | Base fee and conditions to waive it (minimum balance, direct deposit, monthly deposits) | Fees add up to $120–$360 per year; waiving them saves money |
| Per-transaction fees | Cost per ACH transfer, wire transfer, and other transactions | High-volume businesses can pay hundreds extra per year |
| EIN requirement | Whether the bank requires an EIN or accepts Social Security number | Determines whether you can open now or must wait for EIN |
| Payment tools included | ACH transfers, wire transfers, merchant processing, invoicing | Missing tools mean you pay for separate services or use workarounds |
| Account opening time | How many business days to open; online or in-person required | Affects when you can deposit money and start paying bills |
| Overdraft policy | Fee per overdraft and whether you can opt out | Overdraft fees can be $25–$35 each; opting out prevents them |
Red flags and questions to ask before committing
Call or email the bank and ask these specific questions before you open the account. First, ask whether the monthly fee is waived for new accounts or only after a certain period. Second, ask what happens if your balance drops below the minimum — do they charge the fee immediately or give you a grace period. Third, ask whether you can downgrade to a lower-tier account later if your needs change.
Ask whether the bank charges for incoming wire transfers or ACH transfers (some do). Ask whether they offer a business savings account and what the interest rate is, because some banks pay a small amount of interest on savings. Ask whether they have a mobile app and whether you can deposit checks by taking a photo with your phone, because this saves trips to the branch.
Finally, ask about customer service hours. Some banks offer phone support only during business hours; others offer 24/7 support. If you run the business outside normal hours, 24/7 support matters more.
Frequently Asked Questions
Do I need an EIN to open a business bank account?
Not always. Sole proprietors can usually open an account using a Social Security number. LLCs, partnerships, and corporations typically need an EIN, though some banks make exceptions. Call the bank first to confirm their requirement before you apply.
Can I open a business account online, or do I have to go to a branch?
Most large banks and many smaller banks let you open an account entirely online. You upload your ID, business license, and proof of address, and the account opens in one to three business days. Some banks still require an in-person visit; ask before you choose.
What is the difference between a business checking account and a business savings account?
A checking account is for daily transactions — paying bills, receiving deposits, writing checks. A savings account earns a small amount of interest but limits how many withdrawals you can make per month. Most businesses need a checking account; a savings account is optional and useful only if you have money sitting idle.
Can I use my personal bank account for business instead of opening a business account?
Legally, you can, but it creates problems. Mixing personal and business money makes taxes harder to file and can expose your personal assets if the business is sued. A business account keeps the two separate and costs $10 to $30 per month.
What should I do if the bank charges a fee I did not expect?
Call the bank and ask them to explain the charge. If it was a one-time fee you did not know about, ask them to waive it. If it is a recurring fee you want to avoid, ask whether you can meet the conditions to waive it (higher balance, more deposits) or switch to a different account tier.