What you need before you walk in or go online
Banks require specific documents before they will open a business checking account. The exact list depends on your business structure and the bank, but most ask for the same core items: proof of your business identity, proof of your personal identity, and proof that you own or control the business.
For a sole proprietorship, you typically need your Social Security number, a government-issued ID, and proof that you are operating under a business name (if you use one). For an LLC or corporation, you need the articles of organization or incorporation, an EIN letter from the IRS, and identification for each owner or authorized signer. Some banks also ask for a business license or DBA certificate if your state requires one.
Bring originals or certified copies. Banks will not accept photocopies or digital images of most documents, though some larger banks now allow you to upload documents during an online application. Call the bank ahead of time to confirm what they accept in your state.
Key Takeaways
- You will need your EIN (Employer Identification Number) for any business structure except a sole proprietorship, which can use your Social Security number instead.
- Articles of incorporation or organization, along with an IRS EIN letter, are required for LLCs and corporations but not for sole proprietorships.
- Most banks require in-person visits to verify documents and signatures, though some allow the entire process online if you upload certified copies.
- Opening typically takes one to five business days after the bank receives all documents, though some banks offer same-day accounts for online applications.
Getting your EIN if you do not have one yet
An Employer Identification Number (EIN) is a nine-digit identifier the IRS assigns to your business. If you are a sole proprietor with no employees, you can use your Social Security number instead, but most banks prefer an EIN because it separates your personal and business finances on their records.
You can get an EIN for free from the IRS. The fastest way is online at irs.gov/ein. You fill out Form SS-4, answer questions about your business, and receive your EIN immediately on screen. You can also apply by phone (1-800-829-4933) or by mail, but those routes take longer. The IRS will mail you a formal EIN letter within two weeks, which some banks require as proof.
If you apply online, print the confirmation page showing your EIN. Most banks will accept this as temporary proof while you wait for the official letter. Do not delay opening your account waiting for the mailed letter unless the bank specifically says it will not accept the online confirmation.
Choosing between in-person and online applications
Most banks offer both routes. In-person applications happen at a branch and take 30 to 60 minutes. You bring your documents, a banker verifies them, and you sign the account agreement on the spot. The account is usually active the same day or the next business day.
Online applications let you upload documents and sign electronically from home. The process takes 10 to 20 minutes to complete, but the bank then reviews your documents, which can add one to five business days. Some banks offer expedited online accounts that are active within 24 hours if you upload everything correctly the first time.
In-person is faster if you have all documents ready. Online is faster if the bank is far away or if you cannot visit during business hours. Either way, have your documents organized and legible before you start. Blurry photos or missing pages will delay approval.
What happens during the verification step
After you submit your application and documents, the bank verifies that your business exists and that you have the authority to open the account. For sole proprietorships, this is usually quick—the bank checks your ID and confirms your name matches the business name you provided. For LLCs and corporations, the bank may call your state's Secretary of State office or search their database to confirm your articles are on file.
The bank will also run a background check on you and any co-owners or authorized signers. This is not a credit check; it is a check for fraud or financial crimes. If you have a history of fraud or unpaid business debts, the bank may deny the account. Most people pass this step without issue.
Some banks also verify your business address by sending a postcard or letter to the address you provided. You will need to return it or confirm receipt online. This step can add a few days to the timeline.
Minimum deposits and account fees
Most business checking accounts require an opening deposit, which ranges from $0 to $500 depending on the bank and account type. Some banks waive the minimum if you set up direct deposit or maintain a certain balance. Read the account terms before you open to understand what you are committing to.
Business checking accounts also charge monthly fees, typically $10 to $30. Some banks waive the fee if you maintain a minimum balance (often $1,000 to $5,000) or if you have other accounts with them. Others charge per transaction—for example, $0.50 per check or $1 per wire transfer. Compare fee structures across banks before you decide, because fees add up quickly if you write many checks or make frequent transfers.
Ask the bank for a fee schedule in writing. Do not rely on verbal explanations, because fees change and misunderstandings happen.
What to do if the bank denies your application
Banks can deny a business checking account for several reasons: your business does not exist on file with the state, you have a fraud history, the business address is not verifiable, or the bank has a policy against your industry (some banks avoid cannabis businesses, for example, even in states where it is legal).
If you are denied, ask the bank in writing why. They are required to tell you. If the reason is a documentation issue—for example, your articles of incorporation have not been filed yet—fix that and reapply. If the reason is a policy against your industry, try a different bank or a credit union, which often have more flexible policies.
If you believe the denial was based on incorrect information, you can dispute it. Ask the bank to review the decision and provide evidence of what they found. This rarely overturns a denial, but it is worth trying if you know the information they used was wrong.
After your account opens: what to set up next
Once the account is active, you have a checking account number and routing number. Use these to set up payroll if you have employees, to arrange direct deposit for business income, and to pay bills online. Most banks offer free bill pay for business accounts.
You will also receive a debit card and checks. Order checks from the bank or a third-party printer—third-party printers are usually cheaper. Set up online banking and mobile banking so you can monitor the account from anywhere.
Keep your account agreement and fee schedule in a file. Review them once a year to make sure the fees have not changed and that you are still getting the terms you signed up for.
Frequently Asked Questions
Can I open a business checking account without an EIN?
Yes, if you are a sole proprietor. You can use your Social Security number instead. However, most banks prefer an EIN because it keeps your personal and business finances separate on their records. Getting an EIN is free and takes 15 minutes online, so most sole proprietors get one anyway.
Do I need a physical business address or can I use my home?
You can use your home address. The bank will verify that the address exists and that you receive mail there, but it does not have to be a commercial space. Some banks send a postcard to confirm, so make sure mail reaches you at that address.
How long does it actually take to open an account?
In-person applications are usually active the same day or next business day. Online applications take one to five business days after you submit all documents. Some banks offer same-day online accounts if you complete everything correctly the first time. The slowest part is usually the state verification step for LLCs and corporations.
What if I have a partner or co-owner?
All owners or authorized signers must provide identification and sign the account agreement. Some banks require all owners to be present in person; others allow one owner to apply on behalf of the business if they have a power of attorney or corporate resolution. Ask the bank what they require before you apply.
Can I change the account later if I do not like the fees?
Yes. You can close the account and move to a different bank at any time. There are no early-closure penalties on business checking accounts. However, you will need to update your direct deposit, bill pay, and any other services tied to the old account number before you close it.