What you need before you walk into a bank

A business bank account requires proof that your business exists as a legal entity separate from you personally. The documents the bank will ask for depend on what type of business you have — sole proprietorship, LLC, corporation, or partnership — but all of them need something in writing that shows the business is real.

Start by gathering your Employer Identification Number (EIN), which the IRS issues to almost every business structure except sole proprietorships without employees. You can get an EIN free from the IRS website or by phone; it takes minutes. If you are a sole proprietor with no employees, you can use your Social Security number instead, though many banks prefer an EIN anyway.

Next, bring a government-issued photo ID — your driver's license or passport. The bank will verify your identity before opening any account. If your business is an LLC or corporation, bring the formation documents: the Articles of Organization (for an LLC) or Articles of Incorporation (for a corporation), filed with your state. These prove the business legally exists.

Key Takeaways

  • You need an EIN (or your Social Security number for a sole proprietorship), a photo ID, and proof your business is registered with your state if it is an LLC or corporation.
  • Different account types — checking, savings, money market — serve different purposes; most small businesses start with a business checking account.
  • Banks vary widely on minimum balances, monthly fees, and transaction limits, so comparing three or four before you open saves money over time.
  • The entire process usually takes 15 to 30 minutes in person or one to three business days online, depending on the bank.

What documents to bring for each business structure

A sole proprietorship is the simplest: bring your photo ID and either your EIN or Social Security number. If you registered a doing-business-as (DBA) name with your county or state, bring that registration too — some banks ask for it. If you have not registered a DBA, many banks will still open an account under your name, though you may not be able to use a business name on checks.

An LLC requires your Articles of Organization (the document you filed with your state to create the LLC), your photo ID, and your EIN. Some banks also ask for an operating agreement, which is the internal document that governs how the LLC runs. You may have one; if not, the bank can usually proceed without it, though they may ask you to sign a resolution authorizing the account.

A corporation (C-corp or S-corp) needs your Articles of Incorporation, your photo ID, your EIN, and often a corporate resolution — a document signed by an authorized officer stating that the corporation is opening this account. The bank may provide a template for the resolution, or you can bring one from your corporate records.

A partnership (general or limited) requires your Partnership Agreement, your photo ID, your EIN, and proof of your authority to open the account on behalf of the partnership. This might be a resolution signed by the partners or a copy of the agreement showing you have signing authority.

Choosing between banks and account types

Not all banks offer business accounts on the same terms. Large national banks (Chase, Bank of America, Wells Fargo) have many branches and online tools but often charge monthly fees of $10 to $25 and require minimum balances of $500 to $2,500. Credit unions and smaller regional banks often have lower fees and lower minimums but fewer branches and sometimes slower online systems.

Online-only banks (Novo, Mercury, Brex) typically have no monthly fees and no minimum balance requirements, but they do not have physical branches — everything happens through an app or website. This works well if you rarely need to deposit cash or speak to someone in person.

Most small businesses open a business checking account, which is designed for daily transactions: deposits, payments to vendors, payroll. Some also open a business savings account to hold emergency funds or money set aside for taxes. A money market account pays slightly higher interest but usually requires a larger minimum balance and limits how many withdrawals you can make per month.

Before you open an account, call or visit the websites of at least three banks and compare: monthly fees, minimum balance requirements, transaction limits, overdraft fees, and whether they offer the specific services you need (like payroll processing or merchant services for credit card payments).

What happens during the account opening process

If you open an account in person, bring all your documents and plan for 15 to 30 minutes. The bank representative will verify your identity, review your business documents, and ask basic questions: what the business does, how much money you expect to move through the account each month, and whether you need additional services like a business credit card or merchant processing.

The bank will run a background check through ChexSystems (a banking history database) to see if you have had problems with other bank accounts. This is routine and does not affect your credit score. They may also check your personal credit, depending on the bank and the type of account.

Once everything is approved, the bank will issue you a debit card (usually within 7 to 10 business days) and provide you with account numbers and routing information so you can set up direct deposit or automatic payments. Checks can take one to two weeks to arrive if you order them through the bank.

If you open an account online, the process is similar but happens through the bank's website or app. You will upload photos of your documents, verify your identity (sometimes through video call), and answer the same questions. Online accounts often open faster — sometimes within one business day — but you may not receive a debit card or checks as quickly.

Setting up the account for actual use

Once the account is open, you need to connect it to your business finances. If you use accounting software (QuickBooks, FreshBooks, Wave), link the account so transactions download automatically. This saves hours of manual entry and catches errors faster.

Set up direct deposit if you have employees or if you receive regular payments from clients. You will need to provide your new account number and routing number to whoever is paying you. The routing number is the same for all accounts at that bank; the account number is unique to your business account.

If you pay vendors or contractors regularly, set up bill pay through the bank's website or app. Most banks offer this free. You can schedule payments in advance, which helps with cash flow planning.

Order checks if you need them, though many businesses now use bank transfers or credit cards instead. If you do order checks, make sure they are printed with your business name and EIN, not your personal name.

Common reasons a bank might refuse to open an account

Banks can decline to open a business account if you have a history of overdrafts, bounced checks, or fraud at other banks — this shows up in ChexSystems. If this has happened to you, ask the bank what specifically triggered the decline and whether you can address it (sometimes waiting a year or two helps).

Some banks refuse accounts for certain industries they consider high-risk: cannabis businesses, money services, gambling, or adult entertainment. If your business falls into one of these categories, you may need to look for a bank that specializes in that industry or a credit union with more flexible policies.

If your business documents are incomplete or do not match your ID, the bank will ask you to fix them before proceeding. Make sure your name on your ID matches your name on the business formation documents.

Banks also decline accounts if they cannot verify your identity or if you cannot provide an EIN or Social Security number. If you are opening an account for a business that is not yet officially registered with your state, register it first — the bank will not open an account for a business that does not legally exist.

What to do if you need the account to open faster

If you need the account open within days rather than weeks, open it online with a bank that processes applications the same day. Novo and Mercury typically open accounts within 24 hours. You will have access to the account number and routing information immediately, even if the physical debit card takes longer to arrive.

Alternatively, open an account in person at a local bank branch. Bring all your documents and ask whether they can open the account while you wait. Many banks can do this, and you will leave with account numbers the same day.

If you need to deposit cash immediately, ask whether the bank offers mobile check deposit or whether you can deposit at a branch before your debit card arrives. Most banks allow this once the account is officially open.

Frequently Asked Questions

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

No. Banks require proof that your business legally exists — either a DBA registration, LLC formation documents, or corporate articles. Register your business with your state first, then open the account. This usually takes one to two weeks.

Do I need a separate business account if I am a sole proprietor?

You are not legally required to, but it is strongly recommended. A separate account makes taxes simpler because all business income and expenses are in one place, and it protects you if you are ever audited — the IRS can see that you kept business and personal money separate. It also looks more professional to clients and vendors.

What is the difference between a business checking account and a regular checking account?

Business accounts are designed for business use: they often include features like bill pay, merchant services, and higher transaction limits. Personal accounts are for individual use and may have restrictions on business deposits or payments. Banks may also charge different fees for each type.

How long does it take to receive checks after I open the account?

If you order checks through the bank, they usually arrive within one to two weeks. If you order from a third-party printer (often cheaper), it can take two to three weeks. You can use transfers and bill pay in the meantime.

What if the bank asks for a business license?

Some banks ask for a business license, especially if you operate in an industry that requires one (food service, childcare, contracting). If you have one, bring it. If your industry does not require a license, tell the bank that — they should not refuse the account because of it, but they may ask for additional documentation like a DBA registration or proof of your business address.