Can a Minor Open a Business Bank Account?

A minor can open a business bank account, but the bank will require an adult to co-own it or act as a custodian

Most banks will not let someone under 18 open a business account alone. The bank sees a business account as a contract, and minors cannot legally sign contracts without an adult. What you can do depends on your age, what your business is, and which bank you approach — but in nearly every case, you will need a parent or guardian involved from the start.

The adult does not have to be a co-owner. They can be a custodian, which means they have legal responsibility for the account but you control the day-to-day money. Some banks call this a "minor business account" or "teen business account". Others require the adult to be a full co-owner with equal access. The rules vary by bank and by state.

If you are 16 or 17 and your state allows it, a few banks will let you open certain accounts with just parental consent rather than requiring the parent to be on the account itself. This is rare and usually only for straightforward savings or checking accounts, not business accounts. Call your bank directly to ask what they offer — their website usually will not spell this out.

Key Takeaways

A parent or guardian must be involved in opening a business account for a minor, either as a custodian or co-owner.
The adult's role varies by bank: some require them to co-own the account with full access, others let them act as custodian with you controlling daily transactions.
You will need to bring your Social Security number, proof of your business (such as a business license or tax ID), and the adult's identification and Social Security number.
Some banks have specific teen or minor business accounts with lower fees or simpler requirements than standard business accounts.
If your bank says no, ask whether they offer custodial accounts or whether a different branch has different policies.

What the bank will ask for when you walk in

Bring your Social Security number and a form of ID — usually a school ID, state ID, or passport. The adult will need their Social Security number, a government-issued ID, and proof of address (a utility bill or lease usually works). Some banks also ask for proof that you actually have a business, such as a business license, a Doing Business As (DBA) certificate, or a federal Employer Identification Number (EIN).

If you do not have formal business paperwork yet, ask the bank what counts as proof. Some will accept a straightforward letter from you describing what you do — dog walking, lawn care, freelance design — and how long you have been doing it. Others want something official. This varies widely, so call ahead and ask what documents they need before you go in.

The bank will also ask why you need a business account rather than a regular checking account. Be honest: you want to keep business money separate from personal money, or you need to deposit checks made out to your business name. Banks hear this all the time from young people and it is a legitimate reason.

The difference between custodial and co-owner accounts

In a custodial account, the adult is the legal owner but you have a debit card and can make deposits and withdrawals. The adult can see all transactions and can freeze or close the account, but they are not supposed to use the money for themselves — it is held in trust for you. This is the setup most favorable to a young business owner because you have real control over your own money.

In a co-owner account, both you and the adult are equally responsible for the account. You both can withdraw money, both can close it, and both are liable if the account goes negative. This gives you more independence but less protection, because the adult can take money out without asking you. Some banks default to this because it is simpler legally.

Ask the bank directly which type they offer for minors. If they only offer co-owner accounts and you are uncomfortable with that, ask whether they have a custodial option or whether you can speak to a manager. Some banks will work with you if you ask.

When you turn 18

Once you turn 18, you become a legal adult and can own the account yourself. The bank will usually let the adult come off the account at that point, though some require you to open a new account in your name alone. Ask your bank what their process is — it should be straightforward, often just a form to sign.

Before your 18th birthday, talk to the adult on your account about the transition. Make sure you know how to access online banking, what your account number is, and where important documents are kept. If the adult has been managing the account and you have not been paying attention, now is the time to take over.

If your bank says no

Not all banks offer business accounts for minors, and some have age minimums (like 16 or 17). If your bank turns you down, try a different bank or a credit union. Credit unions sometimes have more flexibility with minor accounts because they are member-owned and may be more willing to work with young people in your community.

You can also ask whether the bank offers a regular checking account for minors with a custodian, and whether you can use that for your business instead. It will not be labeled a "business account," but if the bank allows it, you can deposit business checks and use it to pay business expenses. This is less formal but it works.

Another option: if you have a business partner who is 18 or older, they can open the business account in their name and you can be added as an authorized user. This is not ideal because they have more legal responsibility, but it is a workaround if you cannot find a bank willing to work with you as a minor.

What happens with taxes and the IRS

Opening a business account does not change your tax situation. If you are running a business and making money, you may owe taxes on that income — whether you have a business account or not. A business account just makes it easier to track income and expenses, which makes tax time simpler.

If your business is large enough or structured formally (like an LLC or partnership), you may need an Employer Identification Number (EIN) from the IRS. You can get an EIN even as a minor — the IRS does not care about age. You will need to fill out Form SS-4 and submit it to the IRS. The bank may ask for this number when you open the account.

Talk to a parent or a tax professional about whether you need an EIN for your specific business. For very small operations — a teenager doing occasional freelance work — you may not need one. But if you are running something more substantial, getting an EIN keeps things organized and makes the bank happier.

Frequently Asked Questions

Can I open a business account without telling my parents?

No. The bank will require a parent or guardian to be present and to sign documents. You cannot hide this from them. If you are worried about their reaction, have a conversation with them first about why you want the account — most parents support their kids' business efforts once they understand what is happening.

What if my parent refuses to help me open an account?

You can use a regular checking account for your business instead, as long as the bank allows minors to have one. You will not get all the features of a business account, but you can deposit checks and track expenses. If your parent refuses to help with that too, you may need to wait until you turn 18.

Do I need a business license to open a business account as a minor?

Not always. Many banks will open an account based on a straightforward description of your business. Some ask for a business license or DBA certificate. Call your bank first and ask what they need — do not assume you have to get a license before you can open the account.

Will having a business account affect my credit score?

No. Business accounts are separate from personal credit. Opening a business account will not show up on your credit report or change your credit score. Your personal checking or savings account also does not affect your credit unless you overdraft and the bank reports it.

Can I use a business account if I am self-employed but do not have a formal business?

Yes. You do not need to be incorporated or have an official business license to open a business account. If you are earning money from work you do — tutoring, freelancing, selling items online — that counts as self-employment and most banks will open a business account for you.

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.