Where to Open a Business Bank Account

Start with your own bank, then compare other options

The fastest place to open a business bank account is often the bank where you already have a personal account. You already have a relationship there, they have your identity on file, and the process usually takes one visit or one phone call. But your current bank may not be the best choice for your business — they might charge high monthly fees, require a large minimum balance, or offer poor tools for tracking expenses.

Your real decision is whether to stay with convenience or shop around. If you have been with your bank for years and trust them, staying is reasonable. If you are new to banking or your current bank has frustrated you, this is the moment to look elsewhere. The account you open now will shape how you handle money for months or years, so spending an hour comparing options is worth the time.

Key Takeaways

Your current bank can open a business account quickly, but may charge monthly fees or require a high minimum balance that does not fit a small business.
Online banks and credit unions often charge lower fees and have no minimum balance, but offer fewer in-person services if you need to deposit cash or speak to someone face-to-face.
You will need your Social Security number or EIN, a government ID, and proof of your business name — usually a DBA filing, articles of incorporation, or a business license.
Banks differ on whether they require you to visit in person or allow you to open the account entirely online.
Monthly fees, minimum balance requirements, and transaction limits vary widely, so comparing three to five banks takes less than an hour and can save you hundreds of dollars per year.

Traditional banks: convenience and higher costs

A traditional bank — one with physical branches in your area — is easiest if you need to deposit cash, get a cashier's check, or speak to someone in person. Banks like Chase, Bank of America, Wells Fargo, and regional banks like PNC or US Bank all offer business accounts. Most require you to visit a branch to open the account, though some now allow you to start online and finish in person.

The trade-off is cost. Traditional banks typically charge a monthly maintenance fee for business accounts — often $10 to $25 per month, sometimes more. Many also require a minimum balance, ranging from $500 to $2,500, to avoid the fee. If you keep less than that in the account, you pay the fee every month. Over a year, that adds up quickly, especially when you are starting out.

Ask your current bank what they charge for a small business account before you assume it is expensive. Some banks offer lower-fee accounts for sole proprietors or very small businesses, or they waive the fee if you maintain direct deposit or keep a certain balance. It is worth a five-minute phone call to find out.

Online banks: lower fees, no branches

Online banks like Novo, Mercury, Brex, and Square have become popular for small business owners because they charge no monthly fee and have no minimum balance. You open the account entirely online in 10 to 15 minutes, and you can start using it the same day. The interface is usually modern and designed for business owners — you can categorize transactions, set spending limits, and export data for taxes.

The limitation is that you cannot deposit cash in person. If your business takes cash payments, you will need to deposit them at an ATM (if the bank has a network) or use a mobile app to deposit checks by taking a photo. Some online banks partner with ATM networks so you can deposit cash at thousands of locations; others do not. Before you choose an online bank, check whether they support cash deposits the way your business needs.

Online banks also have no physical branch to visit if something goes wrong. Customer service is usually by phone, email, or chat. If you are uncomfortable managing your account entirely on a screen and phone, a traditional bank or credit union may feel safer.

Credit unions: member-owned alternatives

A credit union is a nonprofit bank owned by its members. Many credit unions offer business accounts with low or no monthly fees, no minimum balance, and friendly customer service. You can find a credit union near you by searching the CO-OP Network or Shared Branch locator on the Credit Union National Association website.

To open an account at a credit union, you usually have to become a member first. Membership requirements vary — some credit unions are open to anyone in a certain geographic area, others are open only to employees of a specific company or members of a specific organization. Once you are a member, opening a business account is straightforward.

Credit unions tend to be smaller than traditional banks, so their online tools may not be as polished as those at Chase or an online bank. But if you value personal service and low fees, a credit union is often a good fit for a small business.

What documents you will need to bring or upload

Every bank will ask for proof of your identity and proof that your business exists. The exact documents depend on how your business is structured, but here is what most banks ask for:

A government-issued photo ID (driver's license or passport)
Your Social Security number or Employer Identification Number (EIN)
Proof of your business name — this could be a DBA (Doing Business As) filing, articles of incorporation, a business license, or a certificate of formation
Your address and phone number

If you are a sole proprietor and have not filed any paperwork yet, some banks will open an account under your personal name with a note that it is for business use. Others require at least a DBA filing. Call ahead or check the bank's website to see what they accept.

If you have an EIN (which you will need if you hire employees or form an LLC or corporation), bring that instead of your Social Security number. The EIN is safer to share because it is not tied to your personal credit.

Comparing fees and features side by side

Before you decide, write down what matters most to your business. Do you need to deposit cash? Do you want to pay bills online? Do you need a debit card? Do you plan to hire employees and run payroll? Once you know what you need, compare three to five banks on these points:

Monthly fee: Is there one? Can you waive it by maintaining a minimum balance or setting up direct deposit?
Minimum balance: How much do you have to keep in the account to avoid fees?
Transaction limits: How many deposits and withdrawals can you make per month? Are there limits on transfers?
Cash deposits: Can you deposit cash in person, at an ATM, or through mobile deposit?
Check deposits: Can you deposit checks by taking a photo with your phone?
Online tools: Can you categorize transactions, export data, or connect to accounting software like QuickBooks?
Customer service: Can you reach someone by phone, or only by email or chat?

Most banks publish their fee schedules online. Spend 20 minutes reading through two or three, and you will have a clear picture of what each one costs.

Opening the account: in person or online

If you choose a traditional bank or credit union, you will likely need to visit a branch. Bring your ID, your Social Security number or EIN, and proof of your business name. The process usually takes 15 to 30 minutes. You will sign paperwork, choose a debit card design, and set up online access. The account is usually active the same day or the next business day.

If you choose an online bank, you can open the account from your phone or computer. You will upload photos of your ID and business documents, enter your information, and verify your identity (usually by answering security questions or confirming a small deposit). The account is typically active within hours.

After you open the account, the bank will send you a debit card in the mail, usually within 5 to 10 business days. Some online banks offer a temporary virtual card you can use when ready while you wait for the physical card.

Frequently Asked Questions

Can I open a business account if I have not registered my business yet?

Some banks will, some will not. If you are a sole proprietor, many banks let you open an account under your personal name with a note that it is for business use. If you have formed an LLC or corporation, you will need to show your articles of incorporation or certificate of formation. Call your bank first to ask what they require.

Do I need an EIN to open a business bank account?

Not always. If you are a sole proprietor with no employees, you can use your Social Security number. If you have formed an LLC, corporation, or partnership, or if you plan to hire employees, you will need an EIN. You can get one free from the IRS website in about 15 minutes.

What is the difference between a business account and a personal account?

A business account is designed to handle multiple transactions, separate your personal and business money, and provide records for taxes. A personal account is not meant for business use and may violate the bank's terms of service if you use it that way. Using a business account also makes it easier to prove your income and expenses to the IRS.

Can I switch banks later if I do not like the one I chose?

Yes. You can open a new account at a different bank and move your money over. The process takes a few days. Some banks offer a service where they move your automatic deposits and payments to the new account for you. There is no penalty for closing a business account.

Which bank is best for a very small business with almost no transactions?

An online bank with no monthly fee and no minimum balance is usually the best choice. You pay nothing whether you use the account or not, and you can access it anytime. Novo, Mercury, and Square all fit this description.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.