What you need to open a business bank account
Most banks require three things before they will open a business account: proof that your business exists, proof of your identity, and an initial deposit. The exact documents vary by bank and by the legal structure of your business, but the core set is consistent across most institutions.
You will need a government-issued photo ID — a driver's license or passport. You will also need an Employer Identification Number (EIN), which is a nine-digit tax ID issued by the IRS. If you are a sole proprietor using your Social Security number instead of an EIN, you can still open an account, but most banks prefer an EIN. You can get one free from the IRS website in about 15 minutes.
The third piece is proof of your business structure. If you are a sole proprietor, you may only need your ID and EIN. If you are an LLC, S-corp, or C-corp, you will need to bring your Articles of Organization or Certificate of Incorporation — the document you filed with your state when you registered the business. Some banks also ask for a business license from your city or county, though this is less common.
Key Takeaways
- You need a government ID, an EIN from the IRS, and proof of your business structure (Articles of Organization or Certificate of Incorporation for LLCs and corporations).
- Most banks require an initial deposit ranging from $100 to $2,500, though some have no minimum and some online banks have lower thresholds.
- Opening an account in person at a branch usually takes 30 minutes to an hour; online applications can take one to three business days for approval.
- You will need to bring a second form of ID or proof of address if you are opening the account online, since the bank cannot verify you in person.
Where to open the account: in person versus online
You can open a business account at a traditional bank branch, a credit union, or an online bank. Each route has different speed and documentation requirements.
Opening in person at a branch is the fastest if you have all your documents ready. Bring your ID, EIN documentation, and your Articles of Organization or Certificate of Incorporation. The banker will verify everything on the spot, and you can usually walk out with a debit card and account number the same day. The whole process takes 30 minutes to an hour. You will need to make your initial deposit at that time, either by check, cash, or transfer from another account.
Online banks and some traditional banks offer remote account opening. You upload photos of your documents, verify your identity through the app, and the bank reviews everything over one to three business days. You do not need to visit a branch, but you will need a second form of ID or proof of address — a utility bill, lease, or recent tax return. The initial deposit is usually made by transfer from your personal bank account.
Credit unions often have lower fees and better rates than traditional banks, but membership requirements vary. Some are open to anyone in a geographic area; others require you to work in a specific industry or belong to an organization. Check whether you are a member before you apply.
Documents to bring or upload
| Document | Why the bank needs it | Where to get it |
|---|---|---|
| Government-issued photo ID | Verifies your identity | Driver's license, passport, or state ID |
| EIN documentation | Proves your business tax ID | IRS Form SS-4 confirmation or IRS letter (free from IRS.gov) |
| Articles of Organization or Certificate of Incorporation | Proves your business is registered with the state | Your state's Secretary of State office (online or by mail) |
| Business license (sometimes) | Proves local registration | Your city or county clerk's office |
| Proof of address (online only) | Verifies your identity when opening remotely | Utility bill, lease, or recent tax return in your name |
Initial deposit requirements and account minimums
Banks vary widely on how much you must deposit to open an account. Traditional banks often require $500 to $2,500 as an initial deposit. Some require a monthly minimum balance to avoid fees. Online banks and some credit unions have no minimum deposit and no balance requirement, which makes them cheaper to maintain if you are just starting out.
The initial deposit is separate from any monthly fees. It is money that goes into your account and stays there — you can spend it or transfer it out once the account is open. Monthly maintenance fees, if they apply, are charged by the bank and deducted from your balance. Many business accounts charge $10 to $25 per month, though some waive the fee if you maintain a certain balance or set up direct deposit.
Ask the bank about all fees before you open the account. Some charge per check, per transfer, or per deposit. Others charge a flat monthly fee that covers unlimited transactions. Online banks almost always have lower fees than brick-and-mortar branches.
Timeline from application to first use
If you open in person, you can use the account the same day. The bank will give you a debit card or temporary card number, and you will have access to your account number for transfers and bill pay immediately.
If you open online, the bank will send you a debit card by mail, which usually arrives within five to seven business days. In the meantime, you can often set up transfers and bill pay using your account number, though some banks restrict this until the card arrives. A few online banks issue a temporary virtual card number you can use right away for online purchases.
If you need checks, order them separately. Most banks offer checks through their website or a third-party printer. Checks usually arrive within one to two weeks. Some banks charge for checks; others include them free.
What happens if your business structure changes
If you convert from a sole proprietorship to an LLC, or from an LLC to a corporation, you will need to update your bank account. The bank will ask for your new Articles of Organization or Certificate of Incorporation. You do not need to close the old account and open a new one — the bank can usually update the account on file once they verify the new documents.
If you change your business name, the process is similar. Bring your updated business registration from your state, and the bank will update the account name. This usually takes a few business days.
If you add a co-owner or partner, the bank will need to verify their identity and may require them to sign new account paperwork. Some banks allow you to add signers online; others require an in-person visit.
Common reasons banks deny business accounts
Banks run a background check on you and your business when you open an account. They are looking for signs of fraud, money laundering, or other financial crimes. A few things that can trigger a denial: a history of bounced checks or overdrafts at other banks, a criminal record involving fraud or theft, or a business that operates in a high-risk industry like cryptocurrency or cannabis (even in states where it is legal).
If your account is denied, ask the bank why. Some reasons are fixable — for example, if you have old unpaid overdrafts at another bank, you can pay them and reapply. Others are harder to overcome. If you are denied at one bank, try another. Different banks have different risk tolerances, and a bank that denies you may accept you at a different branch or a different institution.
If you operate in a high-risk industry, look for banks that specialize in that sector. Some banks focus on cannabis businesses, cryptocurrency exchanges, or other industries that traditional banks avoid.
Frequently Asked Questions
Do I need an EIN if I am a sole proprietor?
No, but most banks prefer one. You can use your Social Security number instead, but getting an EIN is free and takes 15 minutes on the IRS website. It keeps your personal and business finances separate and makes the account easier to manage if you hire employees later.
Can I open a business account if I do not have an LLC or corporation yet?
Yes. A sole proprietorship does not require any registration — you can open an account as a sole proprietor using just your name, ID, and Social Security number or EIN. You do not need Articles of Organization or a Certificate of Incorporation.
What if I do not have a physical business address?
You can use your home address or a virtual mailbox address. Some banks accept a UPS Store box or a coworking space address. Ask the bank what they accept before you apply. Online banks are usually more flexible about this than traditional branches.
How long does it take to get an EIN?
If you apply online through the IRS website, you get your EIN immediately — you can print it right away. If you apply by phone or mail, it takes one to two weeks. You do not need to wait for the official IRS letter; the confirmation page or phone confirmation is enough to open a bank account.
Can I open a business account if I have bad credit?
Yes. Banks do not usually check your personal credit score for a business account. They check for fraud, unpaid overdrafts, or other banking problems. If you have been denied accounts in the past, tell the bank why and ask if they can work with you.