What you need before you walk into a bank

Opening a business bank account requires you to bring proof that your business exists and proof of your identity. The bank needs to know who owns the business, what it does, and where it operates. Most banks will ask for an Employer Identification Number (EIN) — a nine-digit number the IRS assigns to your business — though some will accept a Social Security number if you're a sole proprietor. You'll also need a government-issued ID, usually a driver's license or passport.

The specific documents vary depending on your business structure. A sole proprietor needs less paperwork than an LLC or corporation. If you're operating under a name different from your legal name, you'll need a DBA (Doing Business As) certificate or fictitious name registration from your state or county. Some banks ask for a business license, though not all states require one. Call the bank before you go — each institution has its own checklist, and showing up with the wrong documents wastes a trip.

Key Takeaways

  • You need a government-issued ID, proof of your business structure (articles of incorporation, EIN letter, or DBA certificate), and your Social Security number or EIN before you visit the bank.
  • Sole proprietors typically need fewer documents than LLCs or corporations, and some banks will let you open an account with just your Social Security number.
  • The bank will verify your identity and business information during the appointment, which usually takes 20 to 30 minutes.
  • You'll choose between a basic checking account, a money market account, or a sweep account depending on how you plan to move money and whether you want interest on your balance.
  • Monthly fees range widely — some banks charge nothing if you maintain a minimum balance, while others charge $10 to $25 per month regardless.

Documents you need for each business structure

If you're a sole proprietor, bring your driver's license or passport, your Social Security number, and proof that you're operating under your own name or a registered DBA. If you're using a DBA, the certificate from your county clerk's office or state business registration is what the bank needs to see. Some banks will open an account for a sole proprietor with nothing but an ID and Social Security number, though they may ask about the nature of your business.

If you have an LLC or corporation, bring your articles of incorporation or articles of organization — the document you filed with your state to create the business. You'll also need an EIN letter from the IRS, which shows the nine-digit number assigned to your business. If you don't have the letter yet, you can print it from the IRS website using your ITIN or EIN, or call the IRS at 1-800-829-4933 to request one. Some banks will accept a screenshot of your EIN confirmation from the IRS website, but calling ahead to confirm saves time.

Bring a resolution or certificate of authority if the bank asks for it — this is a document signed by the business owner or board stating who is authorized to open and manage the account. Not all banks require this, but larger institutions often do. If you're opening the account on behalf of someone else, you'll need written authorization from the owner.

What happens during the appointment

The banker will verify your identity by checking your government-issued ID against your Social Security number or EIN. They'll ask basic questions about your business: what you do, how long you've been operating, how much money you expect to move through the account each month, and whether you plan to deposit checks or cash regularly. These questions help the bank assess risk and decide whether to approve the account.

The bank will also run a check against ChexSystems, a database that tracks banking history and fraud. If you've had accounts closed for overdrafts or fraud, the bank may see that and decline to open an account. Some banks are stricter than others — community banks and credit unions sometimes approve accounts that larger banks reject.

Once approved, you'll sign the account agreement and deposit agreement, which spell out the bank's fees, your rights, and what happens if you overdraw. The banker will explain the account type you've chosen and show you how to set up online banking. The whole process usually takes 20 to 30 minutes.

Choosing between account types

Most small businesses open a basic business checking account, which lets you write checks, make deposits, and transfer money without earning interest. Fees range from nothing (if you keep a minimum balance, usually $500 to $2,500) to $25 per month. Some banks charge per check or per deposit, so read the fee schedule carefully.

A money market account earns interest on your balance but usually requires a higher minimum balance — often $2,500 to $10,000 — and limits how many withdrawals you can make per month. This works if you have cash sitting in the account that you don't need to move frequently. The interest rate varies with the federal funds rate and changes monthly.

A sweep account automatically moves money between a checking account and a money market or savings account to earn interest while keeping funds available for spending. This is useful if you have irregular cash flow and want to earn something on the balance without managing two accounts manually. Setup takes longer because the bank has to link the accounts, but the process is straightforward.

Getting your debit card and online banking set up

The bank will issue a debit card during your appointment or mail it within 5 to 7 business days. You can usually set up it online or by phone once it arrives. Online banking access is typically available when ready after you open the account — the banker will give you a temporary password that you change on your first login.

Ask about mobile deposit, which lets you photograph checks and deposit them through your phone instead of visiting the bank. Most banks offer this free, but some charge a small fee per deposit or cap the number of deposits per month. If you plan to deposit checks regularly, confirm that mobile deposit is included in your account type.

Set up bill pay during your first login if you plan to pay vendors electronically. Most banks include this free with business checking. You'll need the vendor's bank account number and routing number, or you can pay by card if they accept it. Transfers between your accounts at the same bank are usually when ready, while transfers to other banks take 1 to 3 business days.

Timing and what to expect after opening

Your account is active when ready after you sign the paperwork, though some transactions may take time to process. Deposits made before 2 p.m. on a business day usually post the same day; deposits after 2 p.m. post the next business day. Checks take 1 to 5 business days to clear, depending on the bank and the check amount. Transfers to other banks take 1 to 3 business days.

The bank may place a hold on large deposits while they verify the funds, especially if you're new to the account. This is normal and usually lasts 2 to 5 business days. If you need the money sooner, ask the banker whether they can release the hold early.

You'll receive your first statement 30 days after opening the account. Review it carefully to make sure all transactions are correct and that you understand the fees. If you see charges you don't recognize, contact the bank when ready — you have a limited window to dispute them.

Common reasons banks decline to open an account

Banks may decline if you have a history of overdrafts, fraud, or closed accounts in ChexSystems. They may also decline if your business is in a high-risk industry — some banks avoid cannabis businesses, money services, or gambling operations because of regulatory complexity. If one bank declines, try a community bank or credit union, which often have more flexible policies.

If you're declined, ask the bank why. If it's a ChexSystems issue, you can dispute inaccurate information directly with ChexSystems. If it's because of your business type, you may need to find a bank that specializes in that industry. Some online banks have fewer restrictions than brick-and-mortar banks, though they may require a higher minimum balance.

Frequently Asked Questions

Can I open a business bank account without an EIN?

Yes, if you're a sole proprietor. Most banks will let you use your Social Security number instead of an EIN. However, if you plan to hire employees or want to keep your personal and business finances completely separate, getting an EIN is worth doing first. You can explore for one free on the IRS website or by phone.

How much money do I need to deposit to open an account?

It depends on the bank and account type. Some banks require no minimum deposit; others require $100 to $500 to open. Many waive the minimum if you set up direct deposit or maintain a certain balance. Ask the bank about their specific requirement before you visit.

What if my business doesn't have an official address yet?

You can use a home address, a UPS mailbox, or a virtual office address. The bank needs a physical address to verify your business location. If you're using a mailbox, make sure the bank will accept it — some require a street address. You can update your address later once you move to a permanent location.

How long does it take to open an account?

The appointment itself takes 20 to 30 minutes. Your account is active when ready after you sign the paperwork. Debit cards usually arrive within 5 to 7 business days, and checks take 7 to 10 business days if you order them from the bank.

Can I open an account online instead of visiting the bank?

Some online banks and a few brick-and-mortar banks let you open a business account entirely online. You'll upload photos of your documents and verify your identity through video call or by answering security questions. The process is faster, but you won't have a banker to answer questions about account features or fees. Online banks are useful if you don't need in-person service, but traditional banks are better if you plan to deposit cash or need help with business banking decisions.