Yes, you can open a business checking account at 20, but the bank will treat you as an adult and require you to prove the business exists

At 20, you are legally an adult in all 50 states, so banks will not refuse you based on age alone. However, opening a business account is different from opening a personal one. The bank needs to verify that your business is real, that you have the legal right to operate it, and that you are the person authorized to manage the account. What counts as proof depends on your business structure — sole proprietorship, LLC, partnership, or corporation — and varies by bank.

Most banks will ask for a government-issued ID, your Social Security number or EIN, and documentation showing your business exists. For a sole proprietorship (the simplest structure), that might be a DBA certificate or business license. For an LLC or corporation, you will need formation documents from your state. Some banks also run a credit check or review your personal banking history, especially if you are new to banking or have limited credit.

Key Takeaways

  • You can open a business checking account at 20 without a parent or guardian, but the bank will verify your identity and your business structure.
  • A sole proprietorship requires a DBA certificate or business license; an LLC or corporation requires formation documents filed with your state.
  • Banks typically ask for a government ID, Social Security number or EIN, and proof of business address, and some run a credit check.
  • Online banks and credit unions often have lower minimum balances and fewer documentation requirements than large national banks.
  • If you do not yet have a business license or formation documents, you will need to register your business with your state before the bank will open the account.

What documentation you need depends on your business structure

A sole proprietorship is the easiest to set up and requires the least paperwork. You operate under your own name or a "doing business as" (DBA) name. To open an account, bring your government ID, Social Security number, and either a DBA certificate (filed with your county or state) or a business license. Some banks will open an account with just your ID and SSN if you tell them the business name, but most prefer to see the DBA or license on file.

An LLC or corporation requires more documentation because the business is a separate legal entity. You will need your Articles of Organization (for an LLC) or Articles of Incorporation (for a corporation), both filed with your state. You will also need an EIN (Employer Identification Number) from the IRS, which you can get free online at irs.gov. Bring your government ID, the formation documents, and the EIN letter. Some banks also ask for a Certificate of Good Standing from your state, which proves the business is currently registered and in good standing.

A partnership requires documentation showing all partners' names and ownership percentages. You will need a partnership agreement (even if informal) and each partner's ID. The bank may ask for an EIN as well. If you are the only person authorized to manage the account, bring a document signed by all partners stating that.

Steps to open the account

Start by registering your business with your state if you have not already. For a sole proprietorship, file a DBA with your county clerk or state business office (varies by state). For an LLC or corporation, file Articles of Organization or Incorporation with your state's Secretary of State office. This usually costs $50 to $300 and takes one to two weeks. You can do this online in most states.

Once you have your registration or formation documents, contact banks in your area or search online for business checking accounts. Compare minimum balance requirements, monthly fees, and what documentation each bank accepts. Many banks let you start the process online, but you will likely need to visit a branch or video call to verify your identity and sign documents.

Bring your government ID, Social Security number or EIN, business registration documents, and proof of business address (a utility bill, lease, or mail from a government agency). The bank will review everything, run a background check, and usually open the account the same day or within one to three business days. Some banks hold the account for a few days before you can use it.

Where to look: banks and credit unions with lower barriers

Large national banks like Chase, Bank of America, and Wells Fargo have business checking accounts but often require higher minimum balances ($500 to $2,500) and may ask for more documentation. They also charge monthly fees if you do not meet balance or activity requirements.

Online banks like Square Cash, Stripe, Novo, and Mercury have lower or no minimum balances and simpler documentation. They are built for small businesses and often approve accounts faster. However, they do not have physical branches, so everything is done online or by phone.

Credit unions often have lower fees and more flexible documentation requirements than national banks. If you are a member of a credit union, ask whether they offer business checking and what they need to open one. Local community banks also tend to be more flexible with young business owners and may waive some documentation if you already have a personal account with them.

What happens if you do not have a business license yet

If you have not registered your business, you cannot open a business checking account. Banks will not open an account for a business that does not officially exist. You must file your DBA, LLC, or incorporation documents first.

However, you can open a personal checking account in your own name and use it for business purposes while you are getting registered. This is not ideal because it blurs personal and business finances, which can cause problems with taxes and liability, but it is an option if you need to move quickly. Once your business is registered, transfer the money to a proper business account.

Credit checks and banking history

Most banks run a soft credit check or review your ChexSystems report (a banking history database) when you open a business account. A soft check does not affect your credit score. If you have no banking history or a negative ChexSystems report, some banks may still open the account but may require a higher minimum balance or charge higher fees.

If you have been denied a business account, ask the bank why. If it is because of your personal credit or banking history, try a credit union or online bank, which often have fewer restrictions. If it is because your business is not registered, register it first and try again.

Frequently Asked Questions

Do I need a business license to open a business checking account?

You need some form of business registration — a DBA, LLC formation, or corporation filing — but not necessarily a formal "business license." A DBA or state registration is usually enough. Some cities and counties require a separate business license, so check your local requirements. The bank will tell you what they need to see.

Can I open a business account if I have bad personal credit?

Yes, many banks separate business and personal credit checks. However, some banks do review your personal credit or ChexSystems report. If you are denied, try a credit union or online bank, which often have fewer credit-based restrictions. You may also be asked to maintain a higher minimum balance.

What if I do not have an EIN yet?

For a sole proprietorship, you can use your Social Security number instead of an EIN. For an LLC or corporation, you need an EIN. You can get one free from the IRS at irs.gov in about 15 minutes. Some banks will hold your account open while you get the EIN, but most want it before opening.

Can I open a business account online, or do I have to go to a branch?

Online banks let you open accounts entirely online. Traditional banks usually require you to visit a branch or do a video call to verify your identity and sign documents. Online banks are faster, but you will not have access to a physical location if you need to deposit cash or speak to someone in person.

How long does it take to open a business checking account?

If you already have your business registered, opening the account usually takes one to three business days. If you need to register your business first, add one to two weeks for that step. Online banks are often faster — sometimes same-day or next-day approval.