What you need before you walk in

A business bank account is a separate account for your business money, kept apart from your personal checking and savings. To open one, you will need to bring proof of who you are, proof that your business exists, and permission from your bank to hold a business account in your name.

The exact documents depend on what kind of business you run. A sole proprietorship (a business with one owner and no separate legal structure) needs different paperwork than an LLC or corporation. Your bank will tell you what they need, but it helps to know the categories before you call or visit.

Start by gathering your personal ID — a driver's license, passport, or state ID card. Then gather proof that your business is real: this might be a business license, a DBA certificate (if you registered a "doing business as" name), articles of incorporation or organization (if you formed an LLC or corporation), or an EIN letter from the IRS.

Key Takeaways

  • You will need a personal ID, proof your business exists, and usually a Social Security Number or EIN before any bank will open an account.
  • Sole proprietorships, LLCs, and corporations each require different documents, so call your bank first to ask what they need for your business structure.
  • Bring originals or certified copies of documents — banks will not accept photos or uncertified printouts.
  • The process usually takes one to three business days after you submit everything, though some banks offer same-day accounts if you open in person.
  • Monthly fees, minimum balances, and transaction limits vary widely between banks, so compare before you choose.

Documents for a sole proprietorship

If you are the only owner and have not formed an LLC or corporation, you are a sole proprietor. Your bank will ask for your personal ID and your Social Security Number. Some banks also want a business license or a DBA certificate — the document you filed with your city or county when you registered your business name.

If you have not registered your business name officially, you can still open an account under your own name. Many sole proprietors do this at first. You can always add a business name later or open a second account once your business is registered.

A few banks ask for a business plan or a letter explaining what your business does. This is rare, but if your bank asks, a one-page description of your business and why you need a business account is enough.

Documents for an LLC or corporation

If you have formed an LLC or corporation, your bank will ask for your articles of organization (for an LLC) or articles of incorporation (for a corporation). These are the legal documents you filed with your state when you created the business. You can get a certified copy from your state's Secretary of State office if you have lost yours.

You will also need an EIN — an Employer Identification Number — from the IRS. This is a nine-digit number that works like a Social Security Number for your business. You can get one free from the IRS website (irs.gov) in about 15 minutes, and they will give you the number when ready. You do not have to be a corporation or LLC to get an EIN; sole proprietors can get one too, though it is not required.

Bring a personal ID and the person opening the account will need to sign the paperwork. If more than one person owns the business, the bank may ask all owners to sign, or they may only need one. Ask before you go in.

Steps to open the account in person

Call your bank or visit their website and ask what documents they need for your type of business. Write down the list. Gather everything and bring the originals — banks will not accept photocopies or photos of documents unless they are certified copies.

Go to a branch during business hours. Bring your documents, your personal ID, and a small deposit if you have one ready. The bank will review your documents, ask you questions about your business, and run a background check. This usually takes 30 minutes to an hour.

You will sign paperwork to open the account and choose a business checking account (and possibly a savings account). The bank will give you a temporary debit card or checks, and your account will be active when ready or within one business day. Your permanent debit card will arrive by mail in five to ten business days.

Opening an account online or by mail

Some banks let you open a business account entirely online. You will upload photos of your documents, answer questions about your business, and sign electronically. The process usually takes one to three business days. A few banks offer same-day approval if you open before noon.

Opening by mail is slower and less common. You will mail your documents to the bank, they will review them, and they will call you to confirm. This can take one to two weeks. Most banks prefer you to open in person or online instead.

If you open online or by mail, ask the bank how you will receive your debit card and first checks. Some will mail them; others will ask you to pick them up at a branch.

Fees, minimums, and what to compare

Business checking accounts are not free. Most banks charge a monthly fee that ranges from nothing to $25 or more, depending on the bank and the account type. Some waive the fee if you keep a minimum balance (often $500 to $2,500) or if you set up direct deposit.

Compare the monthly fee, the minimum balance requirement, the number of free transactions per month, and the cost of extra services like wire transfers or stop payments. A bank that charges $15 a month might be cheaper than one that charges $5 a month but limits you to five free transactions — if you write more than five checks, you will pay per check.

Ask about overdraft fees, ATM fees, and whether the bank charges to close the account. Some banks charge $25 to $50 if you close within the first year. Read the fee schedule before you sign up.

After your account is open

Once your account is active, set up online banking so you can check your balance and transfer money from home. Ask the bank how to enroll. Most let you do it when ready on your phone or computer.

Order checks if you need them. You can order from the bank (usually more expensive) or from a third-party printer (usually cheaper). Ask the bank which printers they accept.

If you have employees or contractors, you will need to set up payroll. This is separate from opening the account, but your business bank account is where you will pay them from. Talk to your accountant or a payroll service about how to do this correctly.

Frequently Asked Questions

Can I open a business account with just an EIN and no business license?

Yes. An EIN is enough for most banks. A business license is helpful but not always required. Call your bank and ask what they need for your specific situation before you gather documents.

What if I do not have an EIN yet?

You can get one free from the IRS website in 15 minutes. If you want to open the account before you have an EIN, ask the bank if they will accept your Social Security Number instead. Many will, especially for sole proprietorships.

Do I need a separate business account if I am a sole proprietor?

You do not have to, but it is a good idea. A separate account makes taxes easier because all your business income and expenses are in one place. It also protects you if someone sues your business — a judge is more likely to see your business and personal money as separate if you kept them in separate accounts.

How long does it take to open an account?

In person, usually 30 minutes to an hour, and the account is active the same day or next business day. Online, one to three business days. By mail, one to two weeks. Some banks offer same-day online approval.

What if the bank rejects my process?

Banks sometimes reject applications because of a poor personal credit history, a history of unpaid bank fees, or suspicious activity. Ask the bank why they rejected you. If it was a credit issue, try a different bank — some are more flexible. If it was fraud-related, you may need to resolve that first.