Banks, credit unions, and online platforms all offer business accounts
You can open a business bank account at a traditional bank branch, a credit union, or an online bank. Each route has different requirements, fees, and speed. Traditional banks usually require you to visit in person and bring documents; credit unions often have lower fees but membership rules; online banks move faster and have lower minimums but offer fewer in-person services. The right choice depends on whether you need a physical location to visit, how much you plan to keep in the account, and what services matter most to your business.
Key Takeaways
- Traditional banks require an in-person visit with your EIN letter, business license, and personal ID, but offer branch access and relationship managers.
- Credit unions typically charge lower fees and offer better rates, but you must be a member first and membership rules vary by location and business type.
- Online banks open accounts in minutes with just an EIN and can be done entirely by computer, but you cannot deposit cash or speak to someone in person.
- Most banks require an Employer Identification Number (EIN) from the IRS, which you can get free online in minutes or by mail in two weeks.
- Sole proprietorships can sometimes use a personal account with a DBA filing, but a separate business account protects your personal assets and simplifies taxes.
Traditional banks: what you need and how long it takes
Walk into any major bank branch — Chase, Bank of America, Wells Fargo, or a regional bank — and ask to open a business checking account. You will need to bring your Employer Identification Number (EIN) letter from the IRS, a government-issued photo ID, and proof of your business address (a utility bill or lease works). Some banks also ask for your business license or articles of incorporation if you are a corporation or LLC.
The appointment usually takes 30 to 45 minutes. The banker will verify your information, run a background check through ChexSystems (a banking history database), and set up the account on the spot. You can start using the account the same day, though checks may take 5 to 10 business days to arrive. Monthly fees range from $0 to $30 depending on the bank and account type; some waive fees if you maintain a minimum balance, usually $500 to $2,500.
The main advantage is access to a banker who knows your account, the ability to deposit cash at a branch, and often better rates on business loans later. The main drawback is that you have to go in person during business hours, and larger banks sometimes have stricter requirements for newer businesses.
Credit unions: lower fees and membership requirements
Credit unions are member-owned financial institutions that often charge less in fees and pay better interest on savings. To open a business account at a credit union, you must first become a member. Membership rules vary widely — some credit unions serve only people who work in a specific industry, live in a specific county, or belong to a specific organization. Others are open to anyone.
Start by searching for credit unions in your area using the CO-OP Network locator or Alliant Credit Union's locator tool. Call or visit the credit union and ask if they offer business accounts and whether your business type meets their membership rules. If you are a sole proprietor, some credit unions will let you open a business account under your personal membership. If you are an LLC or corporation, you may need to set up a separate business membership.
Once you are a member, opening the account works much like a traditional bank — bring your EIN letter, ID, and business documents. The process takes 30 to 60 minutes. Monthly fees are often $0 to $15, and many credit unions do not charge overdraft fees. The trade-off is that credit unions have fewer branches and ATMs than large banks, so if you travel or need cash access everywhere, a traditional bank may be more practical.
Online banks: fastest setup, no in-person visit
Online banks like Novo, Mercury, Brex, and Square open business accounts entirely through your computer. You will need your EIN, a government-issued ID, and your business address. The process takes 10 to 20 minutes, and your account is usually ready to use within 24 hours. Some online banks offer a debit card that arrives in 3 to 5 business days.
Monthly fees are often $0, and many online banks do not charge for transfers, ACH payments, or wire transfers. Some offer features tailored to small businesses, like invoice tracking or expense categorization. The main limitation is that you cannot deposit cash — all deposits must come through ACH transfers, wire transfers, or mobile check deposit. If your business handles a lot of cash, an online bank alone will not work.
Online banks are fastest for businesses that operate entirely digitally, do not need cash deposits, and want to avoid monthly fees. They are also good as a second account for specific purposes, like payroll or vendor payments. Many small business owners use an online bank for day-to-day operations and keep a traditional bank account for cash deposits.
Getting an EIN before you open the account
Most banks will not open a business account without an EIN, even if you are a sole proprietor. You can get an EIN free from the IRS in three ways: online at irs.gov (takes 10 minutes and you get the number immediately), by phone at 1-800-829-4933 (takes 15 minutes), or by mail (takes 2 to 4 weeks). You do not need to file taxes or have employees to get an EIN — it is free and available to any business structure.
When you apply, the IRS will ask for your business name, structure (sole proprietor, LLC, corporation, etc.), and the reason you need the EIN. Once you have it, you will receive a letter in the mail within two weeks. Bring this letter to the bank — do not just write down the number. Banks want to see the official IRS letter.
Sole proprietors: when you can skip a separate business account
If you are a sole proprietor, you can legally operate under a DBA (Doing Business As) filing and use your personal bank account. This means registering your business name with your county or state, then opening a personal checking account in that name. You do not need an EIN — you can use your Social Security number instead.
However, this approach has real drawbacks. A separate business account protects your personal assets if your business is sued, makes tax time simpler because all business income and expenses are in one place, and looks more professional to customers and vendors. The cost is usually just $5 to $15 per month. Most accountants recommend opening a separate business account even as a sole proprietor, especially if your business has any risk (you work with clients' money, you have employees, you own property).
Comparing the three routes side by side
| Route | Time to open | In-person visit | Monthly fee | Cash deposits | Best for |
|---|---|---|---|---|---|
| Traditional bank | Same day | Yes, required | $0–$30 | Yes, at branch | Businesses that handle cash or want a relationship manager |
| Credit union | Same day (after membership) | Yes, required | $0–$15 | Yes, at branch | Businesses in the credit union's service area that want lower fees |
| Online bank | 24 hours | No | $0 | No, ACH only | Digital businesses or as a second account for specific purposes |
What happens if the bank rejects your application
Banks run a background check through ChexSystems and sometimes through the Office of Foreign Assets Control (OFAC). If you have unpaid overdrafts, fraud history, or are on a government sanctions list, the bank may decline. If this happens, ask the bank why — they are required to tell you. You can also request your ChexSystems report for free at chexsystems.com to see what they see.
If you were rejected, try a credit union next — they often have more flexible underwriting. If that does not work, some online banks and smaller regional banks have fewer restrictions. You can also wait 6 to 12 months and reapply once old issues age off your report. Do not apply to multiple banks in a short time — each application creates a hard inquiry that can lower your credit score.
Frequently Asked Questions
Do I need an EIN if I am a sole proprietor?
You do not legally need one to operate as a sole proprietor, but most banks will not open a business account without one. Getting an EIN is free and takes 10 minutes online, so it is worth doing. If you have employees or run a partnership, you must have an EIN.
Can I use my personal bank account for my business?
Yes, if you are a sole proprietor and file a DBA with your county. However, this does not protect your personal assets if the business is sued, and it makes taxes harder. A separate business account costs $5 to $15 per month and is worth the protection and clarity.
What if I do not have a physical business address yet?
Most banks accept a home address, a UPS mailbox, or a virtual office address. Some online banks are more flexible than traditional banks. Call ahead and ask what the bank accepts before you visit or apply.
How long does it take to get checks printed?
Bank-printed checks usually arrive in 5 to 10 business days. You can order checks from a third-party printer like Deluxe or Costco for less money, but they take 7 to 14 days. Many businesses now use ACH transfers or digital payments instead of checks.
Can I open a business account online if the bank has branches near me?
Most traditional banks require an in-person visit, but some now offer hybrid options where you start online and finish in a branch. Ask the bank directly. If you want to avoid the branch visit entirely, an online bank is your fastest option.