What you need before you walk in

A commercial bank account requires more paperwork than a personal account because the bank needs to know who actually owns and controls the business, not just who signed the application. You will need to bring your Employer Identification Number (EIN) — a nine-digit tax ID issued by the IRS — or proof that you have applied for one. If your business is brand new and you have not yet received an EIN, you can apply online at irs.gov and get a number the same day.

You will also need a government-issued photo ID for each owner, manager, or authorized signer. For a sole proprietorship, that is just you. For an LLC, partnership, or corporation, the bank will want ID from every person with ownership stake or signing authority. Bring the original documents, not copies — banks verify these in person.

The third piece is proof that your business exists as a legal entity. For an LLC or corporation, bring a copy of your Articles of Organization or Articles of Incorporation filed with your state. For a sole proprietorship, you may need a DBA (Doing Business As) certificate if you are operating under a name other than your legal name — this is filed at your county level. For a partnership, bring the partnership agreement or a certificate of partnership from your state.

Key Takeaways

  • You must bring an EIN or proof of application, government ID for every owner or authorized signer, and documentation showing your business is registered as a legal entity.
  • Different account types charge different monthly fees, have different minimum balances, and offer different numbers of free transactions — compare these before you choose.
  • The bank will run a background check on the business and its owners, which typically takes one to three business days.
  • You can open an account in person, by mail, or online depending on the bank, but in-person is fastest because the bank verifies your documents on the spot.
  • Once the account is open, you will receive a routing number and account number, which you need to set up payroll, pay vendors, and receive customer payments.

Choosing between account types

Banks offer several commercial account structures, and the one you choose affects your monthly cost and what you can do with the account. A basic checking account is the most common — it lets you write checks, use a debit card, and receive ACH transfers. Monthly fees range from zero to $25 depending on the bank and whether you maintain a minimum balance. Some banks waive the fee if you keep $5,000 or more in the account at all times; others charge a flat fee regardless.

A money market account combines checking with a savings component and pays interest on your balance, but usually requires a higher minimum (often $10,000 or more) and limits how many withdrawals you can make per month. This works well if you have cash you do not need to move frequently and want to earn a small return.

A sweep account automatically moves money between checking and savings to optimize interest earnings while keeping funds available for daily operations. These are more common at larger banks and often require higher minimums.

Ask the bank about transaction limits, wire transfer fees, and whether they offer merchant services (card processing) if you take customer payments. Some banks bundle these; others charge separately. Get the fee schedule in writing before you open the account.

The application and verification process

When you sit down with the bank representative, they will ask you to fill out a Commercial Account Application, which asks for your business name, address, EIN, type of business structure, and the names and Social Security numbers of all owners. They will also ask about the nature of your business, expected monthly transaction volume, and whether you have been denied a bank account in the past.

The bank will then run a background check on the business and each owner using ChexSystems (a banking history database) and sometimes a credit report. This check looks for fraud, unpaid debts, or previous account closures due to overdrafts or suspicious activity. The check typically takes one to three business days.

During this time, the bank may contact you or your business references to verify information. Answer calls from unknown numbers — if the bank cannot reach you, they may delay or deny the account. Once the background check clears, the bank will activate the account and issue you a routing number, account number, and debit card.

Opening the account in person versus online or by mail

Opening in person is the fastest route because the bank verifies your documents on the spot and can answer questions about fees and features immediately. You walk out with your account number the same day, though the account may not be fully active for one to two business days while the bank processes the paperwork internally.

Many banks now offer online account opening for commercial accounts, which saves a trip but requires you to upload photos of your documents and wait for the bank to verify them remotely. This usually takes two to five business days. The bank may still call you to confirm information or ask follow-up questions.

Opening by mail is the slowest option — you send in your application and documents, the bank reviews them, and they mail you back a welcome packet with your account details. This can take two to three weeks. Use this route only if you cannot visit a branch or open online.

What happens after the account opens

Once your account is active, you will receive a welcome packet with your routing number (a nine-digit code that identifies your bank) and account number (a unique identifier for your account). You need both of these to set up direct deposit for payroll, authorize vendor payments, and receive customer payments via ACH or wire transfer.

The bank will also issue you a debit card and checks if you requested them. Checks typically arrive within one to two weeks. If you need checks sooner, you can order them from a third-party printer like Deluxe or Costco, which is often cheaper than ordering from the bank.

Set up online banking immediately so you can monitor your balance, review transactions, and catch fraud quickly. Most banks offer this free. If you plan to accept credit or debit card payments from customers, ask the bank about merchant services or a referral to a payment processor — this is a separate service from the bank account itself.

Common reasons banks deny commercial accounts

Banks can refuse to open an account if the business owner has a history of fraud, unpaid debts, or previous account closures. They may also deny the account if the business is in a high-risk industry (like money services, gambling, or cannabis, depending on state law and the bank's policy) or if the owner has a very poor credit score.

If your account is denied, ask the bank for the specific reason in writing. If it was due to ChexSystems information, you can dispute inaccurate data directly with ChexSystems. If it was due to the nature of your business, you may need to try a different bank — some specialize in higher-risk industries or have different underwriting standards.

If you have been denied multiple times, consider a community bank or credit union, which sometimes have more flexible policies than large national banks. You can also ask a business mentor or accountant for a referral to a bank that has worked with similar businesses.

Frequently Asked Questions

Do I need an EIN if I am a sole proprietor?

Not always. If you are a sole proprietor with no employees, you can use your Social Security number instead of an EIN. However, most banks prefer an EIN because it separates your personal and business finances and makes accounting simpler. You can get an EIN for free from the IRS in minutes online, so it is worth doing even if not required.

Can I open a commercial account without visiting the bank in person?

Yes, many banks allow online or mail-in opening, but in-person is fastest. Online opening usually takes two to five business days because the bank verifies your documents remotely. Mail-in opening can take two to three weeks. If speed matters, visit a branch.

What if my business partner and I both need to sign checks?

Tell the bank during account setup that you want multiple authorized signers. You will need to provide ID and Social Security numbers for each person. The bank will ask whether both signatures are required on every check or whether either signature is acceptable — choose based on your internal controls.

How much money do I need to open the account?

This varies by bank and account type. Some accounts have no minimum opening deposit; others require $500 to $5,000. Ask the bank about their minimum before you apply. Even if there is no opening minimum, some accounts charge a monthly fee if your balance drops below a certain threshold.

Can I change banks later if I do not like this one?

Yes. You can close the account anytime and move to a different bank. You will need to update your routing and account numbers with anyone who sends you money (payroll processor, customers) or takes money from the account (vendors, loan servicers). This usually takes a few days to process, so plan ahead if you are switching.