What you need before you walk in or go online
Banks will ask for three things before they open a business checking account: proof that your business exists, proof of who you are, and an initial deposit (usually $25 to $500, depending on the bank). The specific documents vary by whether you are a sole proprietor, partnership, LLC, or corporation, but the pattern is the same across all banks.
For a sole proprietorship, bring your driver's license or passport, your Social Security number, and either a business license from your city or county or a DBA (Doing Business As) certificate filed with your state. Some banks will open an account with just your personal ID and SSN if you tell them you operate under your own name. For an LLC or corporation, you will need your Articles of Organization or Articles of Incorporation (the document filed with your state), an Employer Identification Number (EIN) from the IRS, and a government-issued ID for the person signing the account paperwork.
If you do not have an EIN yet, you can get one free from the IRS website (irs.gov) in about 15 minutes. If you do not have a business license or DBA, contact your city or county clerk's office — the process usually takes a few days to a few weeks depending on where you are.
Key Takeaways
- Sole proprietors can often open an account with just a driver's license and Social Security number, while LLCs and corporations must provide Articles of Organization or Incorporation and an EIN.
- Most banks require an initial deposit between $25 and $500, though some online banks have no minimum.
- You can apply online, by phone, or in person; online is usually fastest if the bank has your documents ready to upload.
- The account opens the same day or within one business day if you apply in person; online applications typically take 1 to 3 business days.
- After opening, you will receive routing and account numbers, and can order checks or set up transfers within 24 hours.
Where to apply: online, phone, or in person
Most banks now let you start online, which is the fastest route if you have your documents scanned or photographed. You upload your ID, business license or DBA, and EIN letter, then fund the account with a debit card or bank transfer. The bank reviews everything and sends you confirmation within 1 to 3 business days. You can then log in and start using the account immediately, though checks and debit cards arrive by mail later.
Applying in person at a branch is faster for account activation — you walk out with a temporary debit card and can use the account the same day — but requires a trip to the bank during business hours. Bring originals of all documents; the banker will photocopy them and verify your identity on the spot.
Phone applications are less common now, but some banks still offer them. You will still need to mail or upload documents, so this route is not faster than online. Use it only if you prefer to talk through the process with a person before committing.
What happens after you open the account
Once the bank confirms your account is open, you receive an account number and routing number by email or mail. You can start transferring money into the account immediately using these numbers. Checks and a debit card arrive by mail within 5 to 10 business days.
If you need checks sooner, most banks let you order them online through the account dashboard, or you can use a third-party check printer like Deluxe or Costco (which are often cheaper than the bank). If you need a debit card right away, ask the bank if they issue temporary cards in branch or can expedite a card to you.
Set up online banking and bill pay as soon as you log in. Most banks let you link external accounts (your personal bank, a savings account, a credit card) within 24 hours. This lets you move money between accounts and pay vendors without writing checks.
Comparing banks: what differs between them
Banks vary most on three things: monthly fees, minimum balance requirements, and what services are included. Some banks charge $10 to $20 per month for a business checking account; others charge nothing if you keep a minimum balance (usually $500 to $2,500) or maintain a certain number of monthly transactions. Online banks like Mercury, Novo, and Brex typically have no monthly fees and no minimum balance, but they do not have physical branches.
Traditional banks (Chase, Bank of America, Wells Fargo, your local credit union) charge monthly fees but offer in-person support and branch access. Mid-size banks and credit unions often have lower fees than the big chains and more personalized service, but may have fewer features or slower online systems.
Compare what is included: some banks offer unlimited transfers and bill pay at no extra cost; others charge per transaction. Some include accounting software integration (connecting to QuickBooks or Wave); others do not. If you plan to deposit checks by phone or mail, ask whether the bank charges for remote deposit or mobile check deposit — most do not, but some older accounts do.
Sole proprietors: using your Social Security number instead of an EIN
If you are a sole proprietor and do not want to get an EIN, many banks will let you open an account using your Social Security number instead. This is legal and common, especially for freelancers and one-person businesses. You still need a business license or DBA if your bank requires it, but the process is otherwise the same.
The trade-off is that using your SSN instead of an EIN means your business and personal finances are not legally separated on the bank's records. This does not affect your liability protection (if you are a sole proprietor, you do not have liability protection anyway), but it can make accounting and tax filing slightly messier. Most accountants recommend getting an EIN anyway — it takes 15 minutes and is free — so you have a clear separation between business and personal.
What to do if the bank rejects your application
Banks sometimes reject business checking applications because of a mismatch between the name on your ID and the business name, a missing or incorrect EIN, or a flag in your personal credit or banking history. If this happens, call the bank and ask specifically why. Do not assume it is permanent.
If the issue is a name mismatch, update your business license or DBA to match your ID, or apply again with a corrected name. If the issue is an EIN problem, verify your EIN on the IRS website and reapply with the correct number. If the bank cites your personal credit or banking history, ask whether you can appeal or whether a different bank might have different standards — credit unions and smaller regional banks often have more flexible policies than national chains.
If you have had accounts closed for fraud or overdraft abuse, some banks will still open an account for you, but may require a larger deposit or place restrictions on transfers. Be honest about your history when asked; banks can see it anyway, and honesty makes approval more likely.
Frequently Asked Questions
Do I need a business license to open a checking account?
It depends on the bank and your business structure. Sole proprietors can often open an account with just an ID and SSN, especially if operating under their own name. LLCs and corporations always need Articles of Organization or Incorporation. Some banks ask for a business license or DBA; others do not. Call the bank before you apply to confirm what they require.
How long does it take to get an EIN if I need one?
You can get an EIN free from the IRS website (irs.gov) in about 15 minutes. You answer questions about your business, and the IRS issues a number immediately. You can then use that number to open a bank account the same day. Applying by mail takes 4 to 6 weeks, so use the online method.
Can I use my personal bank account for my business?
Legally, yes, if you are a sole proprietor. Practically, no — mixing personal and business money makes taxes harder, looks unprofessional to customers and vendors, and can complicate liability if something goes wrong. A separate business checking account costs little and saves headaches later.
What if I do not have a minimum deposit right now?
Many online banks have no minimum deposit requirement. If you want to use a traditional bank, ask whether they waive the minimum if you set up direct deposit or automatic transfers. Some do. Otherwise, deposit what you can and move money in later once your business starts earning.
Can I open a business account if I have bad personal credit?
Most banks do not check your credit score for a business checking account, but they do check your banking history and may run a soft pull on your credit report. If you have had accounts closed or been reported to ChexSystems, some banks will reject you. Credit unions and smaller regional banks are often more flexible. Call ahead and ask about their policy before applying.