What banks ask for before they open a business account
Banks will ask for proof that your business exists, proof of your identity, and usually a deposit to start the account. The exact documents depend on your business structure — a sole proprietorship needs different paperwork than an LLC or corporation — and on the bank you choose. Most banks want to see a government ID, your Social Security number or EIN, and something that shows the business is real: a business license, articles of incorporation, or a DBA certificate.
Some banks also run a background check through ChexSystems, a banking history database. If you have had accounts closed for overdrafts or fraud, some banks will decline you. Others specialize in second-chance accounts and will work with you anyway. The minimum deposit to open ranges from zero at some online banks to $500 or more at brick-and-mortar branches, though you can often close the account and withdraw the money once it is open.
The process usually takes one to three business days if you apply in person or online with all documents ready. By mail it can take a week or longer. Having your paperwork organized before you walk in or click submit cuts the time in half.
Key Takeaways
- You will need a government ID, your Social Security number or EIN, and proof your business exists — such as a business license, articles of incorporation, or DBA certificate.
- Sole proprietorships, LLCs, and corporations each require different documents, so confirm with the bank what they need for your specific structure before you go in.
- Most banks run a background check through ChexSystems, and some will decline you if you have had accounts closed for overdrafts or fraud — but second-chance accounts exist for this situation.
- Opening takes one to three business days in person or online, or up to a week by mail, and minimum deposits range from zero to $500 depending on the bank.
- Online banks often have lower minimums and faster approval than branch banks, but you cannot deposit cash in person.
Documents you need for each business structure
A sole proprietorship is the simplest. You need your personal ID, Social Security number, and either a business license or a DBA (Doing Business As) certificate if you are operating under a name other than your own. Some banks will open an account with just your ID and SSN if you can show them the business name on a recent invoice or tax return. Call ahead to ask what your bank accepts.
An LLC requires your personal ID, Social Security number, and the articles of incorporation filed with your state. The bank will also ask for an EIN (Employer Identification Number) from the IRS, which you can get free online at irs.gov in about 15 minutes. Bring a copy of the articles and the EIN letter. Some banks also want a resolution from the LLC authorizing the person opening the account to do so — this is a one-page document you can write yourself or find a template for online.
A corporation needs the same documents as an LLC — articles of incorporation, EIN, and your personal ID — plus a corporate resolution. A partnership needs articles of partnership, the EIN, and personal IDs for all partners, though usually only one partner needs to be present to open the account. If you are unsure whether your state requires a specific document, call the bank's business services line before you visit. They see this every day and can tell you exactly what to bring.
Where to open: branch banks versus online banks
Branch banks let you deposit cash and speak to someone in person, which matters if you handle a lot of physical money or want to ask questions face-to-face. They usually charge monthly fees ($10 to $25 is common) unless you keep a minimum balance. Opening takes about 30 minutes in the branch, and you walk out with a debit card the same day.
Online banks have no monthly fees, no minimum balance requirements, and lower or zero opening deposits. They approve accounts in one to three business days, and you can start using the account immediately even before the debit card arrives. The trade-off is that you cannot deposit cash in person — you have to use mobile check deposit, ACH transfers, or wire transfers. If your business is mostly digital or you rarely handle cash, an online bank usually costs less and moves faster.
Some businesses use both: a branch bank for cash deposits and an online bank for lower fees and easier transfers. There is no rule against holding multiple business checking accounts.
The step-by-step process for opening in person
Gather your documents first: government ID, Social Security number or EIN, and proof your business exists. If you are opening for an LLC or corporation, also bring the articles of incorporation and any corporate resolution. Call the bank ahead to confirm they have everything they need for your business structure.
Go to the branch during business hours and ask to speak to someone in business services or new accounts. Tell them you want to open a business checking account and hand over your documents. They will ask questions about your business — what you do, how much money you expect to move through the account, whether you need merchant services or loans later. Answer honestly. They will run a background check, which takes a few minutes.
If everything clears, they will show you the account options — different fee structures, interest rates, and perks — and you will choose one. You will sign paperwork, make your initial deposit if there is a minimum, and they will give you a temporary debit card or a number to use online. The account is active immediately. Your permanent debit card arrives by mail in five to ten business days.
Opening an account online
Online banks let you start the process from your computer or phone. Go to the bank's website, click "open a business account," and fill in your business information. You will upload photos of your ID and any other documents the bank needs. Some banks use video verification, where you show your ID to a camera and answer a few questions to confirm you are who you say you are.
The bank will ask for your Social Security number or EIN, your business address, and what type of business you run. Be accurate — they cross-check this information against public records and databases. If something does not match, they will ask you to clarify or provide more documentation.
Approval usually takes one to three business days. You will get an email confirming the account is open, along with your account number and routing number. You can start making transfers and receiving payments immediately. Your debit card arrives by mail in seven to ten business days. Some online banks also offer a temporary digital card you can use right away through your phone.
What happens if a bank declines you
Banks decline business accounts for a few reasons: a ChexSystems report showing closed accounts or fraud, a mismatch between your documents and public records, or a business structure they do not support. If you are declined, ask the bank why. They are required to tell you, and the reason matters because it determines your next step.
If it is a ChexSystems issue, you can request your report free at chexsystems.com and dispute any errors. If the report is accurate, look for banks that offer second-chance accounts — these are designed for people with banking history problems and usually have higher fees but will work with you. Credit unions often have more flexible policies than big banks.
If it is a document mismatch, get the document corrected. If your business license shows a different address than your ID, update one of them. If your LLC articles have not been filed yet, file them first. If the bank simply does not support your business type, try a different bank — some specialize in certain industries like nonprofits, medical practices, or e-commerce.
Fees and features to compare
Monthly maintenance fees range from zero at online banks to $25 or more at branch banks. Some banks waive the fee if you keep a minimum balance (often $1,000 to $5,000) or if you set up direct deposit. Others charge per transaction — per check written, per ACH transfer, per wire sent. If your business writes many checks, a flat monthly fee is usually cheaper than per-check fees.
Interest rates on business checking are usually very low or zero, so do not expect to earn money on your balance. Some banks offer merchant services (the ability to accept credit card payments) built into the account, while others charge extra. If you need to accept cards, ask whether the rate is included or separate.
Look at what transfers cost: ACH transfers are usually free, but wire transfers often cost $15 to $30. If you send money to vendors frequently, a bank with free ACH is worth more than one with a lower monthly fee. Mobile check deposit is standard now, but confirm the daily and monthly limits — some banks cap you at $5,000 per day or $25,000 per month.
Frequently Asked Questions
Can I open a business account with just a Social Security number, or do I need an EIN?
You can use your Social Security number if you are a sole proprietor. LLCs and corporations need an EIN, which is free and takes 15 minutes to get online at irs.gov. Some banks will let you open the account and add the EIN later, but most want it upfront. Call the bank and ask.
What if I do not have a business license yet?
Some banks will open an account for a sole proprietorship with just your ID and SSN, even without a license. Others want to see a DBA certificate or a recent invoice showing your business name. A few will let you open with a signed statement that you are starting a business. Ask your bank what they accept before you visit.
Do I need to be present in person to open the account?
No. Online banks let you open entirely through your computer or phone. Many branch banks also offer online opening now. If you go in person, usually only one owner needs to be there, even for LLCs or partnerships. Check with your bank about their specific policy.
How long does it take to start using the account after it opens?
If you open in person at a branch, the account is active immediately and you can use the temporary card or account number right away. If you open online, it takes one to three business days for approval, then you can use the account immediately. Your physical debit card arrives by mail in five to ten business days.
What if I have had accounts closed before for overdrafts?
Some banks will decline you based on your ChexSystems report, but many will not. Second-chance accounts exist specifically for this situation. Credit unions are often more flexible than big banks. You can also request your ChexSystems report free at chexsystems.com and dispute any errors before you apply.