What you need before you start

A business bank account is separate from your personal account and holds money that belongs to your company, not you. Banks require proof that your business exists as a legal entity before they will open an account in the business name.

The documents you need depend on what type of business structure you have. A sole proprietorship (you operating alone under your own name) needs different paperwork than an LLC or corporation. Before you visit a bank, gather your business formation documents — the paperwork that officially registered your business with your state.

You will also need a federal Employer Identification Number, called an EIN. This is a nine-digit number the IRS assigns to your business. Even if you are a sole proprietor with no employees, you may need one to open a business account. You can request an EIN free from the IRS website or by phone; it takes minutes to get one.

Key Takeaways

  • You need proof your business is registered with your state — a Certificate of Formation, Articles of Incorporation, or DBA filing — before any bank will open a business account.
  • An EIN from the IRS is required by most banks, even for sole proprietors, and takes minutes to request online at no cost.
  • Bring your business formation documents, EIN, personal ID, and initial deposit to the bank; some banks also ask for a business license or tax return.
  • Different business structures (sole proprietorship, LLC, corporation) have different paperwork requirements, so confirm with your bank what documents they need for your type of business.
  • Some banks offer business accounts with no monthly fee or minimum balance, while others charge monthly fees or require a deposit to open; compare options before you choose.

What documents to bring for each business type

A sole proprietorship is a business you run by yourself under your own name or a "doing business as" name (DBA). If you registered a DBA with your county or state, bring that certificate. If you operate under your own name only, bring your personal ID and EIN letter. Some banks will ask for a business license from your city or county as well.

An LLC (Limited Liability Company) requires an Articles of Organization or Certificate of Formation filed with your state. Bring that document, your EIN letter, and your personal ID. The bank may also ask for an operating agreement — the internal rules document for your LLC — though not all banks require it.

A corporation needs Articles of Incorporation filed with your state, your EIN letter, and your personal ID. Some banks also ask for corporate bylaws or a board resolution authorizing the account. Call the bank before you go to confirm what they need.

A partnership requires a partnership agreement and the Articles of Partnership or DBA filing. Bring those, the EIN letter, and ID for the person opening the account. The bank may ask which partner is authorized to sign checks and withdraw money.

How to get an EIN if you don't have one

You can request an EIN online at the IRS website (irs.gov) using Form SS-4. The process takes about ten minutes, and you receive your number when ready on screen. You can print the confirmation page or save it as a PDF — this serves as proof of your EIN until the IRS mails you an official letter.

If you prefer not to explore online, you can call the IRS Business and Specialty Tax Line at 1-800-829-4933. They will assign you an EIN over the phone and mail you a formal letter. This takes longer but works if you do not have reliable internet access.

You do not need to pay anyone to get an EIN. Some websites charge fees to "help" you request one, but the IRS process is free. If you already have an EIN from a previous business or from filing taxes, you can reuse it or request a new one depending on your situation — ask the IRS when you call or explore.

What to bring to the bank

Bring your business formation documents (the ones listed above for your business type), your EIN letter or confirmation page, and a government-issued photo ID. The person opening the account must be present and provide their ID.

Bring money for your initial deposit. The amount varies by bank and account type — some business accounts have no minimum, while others require $100 to $500 or more. Ask the bank what the minimum is before you go, so you bring enough.

If the bank asks for additional documents — such as a business license, tax return, or proof of address — ask them to email you the list. This saves a trip if you need to gather something else. Some banks post their requirements on their website under "business checking" or "business account."

Choosing between banks and account types

Business accounts differ in cost and features. Some banks charge a monthly maintenance fee ($10 to $25 per month is common), while others waive the fee if you keep a minimum balance or set up direct deposit. Some accounts include a debit card and online bill pay; others charge extra for these features.

A business checking account is designed for daily transactions — deposits, checks, and transfers. A business savings account earns interest but usually limits how many withdrawals you can make per month. Many businesses open both: checking for operations and savings to set aside money for taxes or emergencies.

Online banks often have lower fees and no minimum balance requirements, but they do not have physical branches. Traditional banks have branches where you can deposit cash and speak to someone in person. Credit unions (member-owned financial institutions) sometimes offer business accounts with lower fees than traditional banks, though you must be a member to open an account.

Compare at least two or three banks before you decide. Look at monthly fees, minimum balance requirements, number of free transactions per month, and whether they charge for checks, wire transfers, or ACH transfers (electronic payments to other accounts).

What happens after you open the account

The bank will give you a debit card, checks, and online login information. You can usually start using the account the same day, though some banks place a hold on your initial deposit for one to two business days.

Set up online banking right away so you can monitor your account and transfer money. Most banks let you set up bill pay (paying bills electronically) and receive alerts when money is deposited or withdrawn. This helps you catch errors or fraud quickly.

If you have employees or plan to hire them, you will need to set up payroll. Some banks offer payroll services, or you can use a separate payroll company like ADP or Gusto. You will also need to register with your state for unemployment insurance and workers' compensation if required in your state.

Common reasons banks deny a business account

Banks may decline to open an account if your business formation documents are missing or incomplete. Make sure your state filing is current and the name on your documents matches the name you want on the bank account.

A personal credit report or banking history problem can also cause a denial. Banks check ChexSystems (a banking history database) and sometimes your personal credit. If you have unpaid overdrafts or fraud flags from a previous account, disclose this to the bank upfront — some will still open an account, especially if the issue is old.

Some banks will not open accounts for certain industries (cannabis businesses, for example, face restrictions because of federal law). If you are in a regulated or high-risk industry, call banks ahead of time to ask whether they serve your type of business.

Frequently Asked Questions

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

Not always. Most banks require your state business formation documents (like Articles of Organization for an LLC), but not all require a city or county business license. Call your bank and ask what documents they need for your business type before you explore.

Can I use my personal Social Security number instead of an EIN?

Some sole proprietors can use their Social Security number, but most banks now require an EIN even for one-person businesses. It is free and takes minutes to get, so requesting one is simpler than asking the bank for an exception.

What if I have not officially registered my business yet?

You need to register your business with your state before opening a business account. For a sole proprietorship, this might mean filing a DBA. For an LLC or corporation, you file Articles of Organization or Incorporation. Do this first, then get your EIN, then go to the bank.

Can someone else open the account if I cannot go to the bank?

Usually no. The person opening the account must be present with a government ID. Some banks allow a second authorized person to be added later, but the owner or authorized officer must appear in person for the initial opening.

How long does it take to open a business account?

If you have all your documents, the process takes 15 to 30 minutes at the bank. You can use the account when ready in most cases, though the bank may hold your initial deposit for one to two business days before the money is available.