You can open most business bank accounts entirely online, but the bank will ask for your business documents and personal identification before you finish
Opening a business bank account online takes 15 minutes to an hour, depending on the bank and whether your documents are ready. You will not need to visit a branch. Most banks let you start the process on their website, upload your documents, and receive account numbers the same day or within one business day. Some banks still require a signature by mail or video call, which adds a few days.
The catch is that banks vary widely in what they ask for and how fast they move. A sole proprietorship with a Social Security number is fastest. An LLC, corporation, or partnership takes longer because the bank needs to verify your business registration with the state. If you are new to business banking, the process feels like you are proving yourself twice — once to the bank and once to the government — but both checks happen in parallel.
Key Takeaways
- You will need your Social Security number or EIN, a government-issued ID, and proof of your business address to open an account online.
- Sole proprietorships open faster than LLCs or corporations because banks do not need to verify a separate business entity with the state.
- Most online banks complete the process in one business day, but some require a mailed signature card or video verification that adds three to five days.
- The bank will ask you to fund the account with an initial deposit, usually between $0 and $500, though some banks waive this requirement.
- You can use your personal bank account temporarily, but moving to a business account protects you legally and makes tax time simpler.
What documents you need before you start
Have these items ready before you open the browser: a government-issued photo ID (driver's license, passport, or state ID), your Social Security number or Employer Identification Number (EIN), and proof of your business address. The address proof can be a utility bill, lease, or mortgage statement in your name. If your business address is different from your home address, bring proof of both.
If you are operating as an LLC, corporation, or partnership, the bank will also ask for your Articles of Organization, Articles of Incorporation, or partnership agreement. You can find these on your state's Secretary of State website or in the email confirmation you received when you registered your business. If you have not registered your business with the state yet, do that first — most banks will not open an account for an unregistered entity.
If you are a sole proprietor using your own name as your business name, you typically do not need to register anything with the state, and the bank will treat the account as a sole proprietorship. If you are using a "doing business as" (DBA) name, some banks ask for a DBA registration or a certificate of assumed name from your county clerk. Check with the bank before you apply.
The step-by-step process online
Start on the bank's website and look for a link that says "Open a Business Account" or "Business Banking." You will enter your business type (sole proprietor, LLC, corporation, or partnership), your business name, and your EIN or Social Security number. The bank will ask for your personal information next: full name, date of birth, address, and phone number.
Upload your documents as PDF or image files. Most banks accept photos taken with a phone camera as long as all four corners of the document are visible and the text is readable. If the bank asks for a signature card, you will either sign it electronically on the screen, receive a form by mail to sign and return, or join a video call with a bank representative who watches you sign.
After you submit everything, the bank will run a background check and verify your identity. This usually takes a few minutes to a few hours. Some banks send you a confirmation email with your account number and routing number the same day. Others hold your application for one to two business days while they verify your business registration with the state. Once your account is open, you can set up online banking, order checks, and link external accounts.
How long it actually takes, from start to finish
If the bank does not require a mailed signature card or video call, you can have a working account within 24 hours. Most online-first banks (like Square Cash, Brex, or Novo) complete the process in one business day. Traditional banks like Chase, Bank of America, and Wells Fargo often take two to three business days because they verify your business registration with the state before they activate the account.
If the bank requires a mailed signature card, add five to seven business days for the card to arrive, for you to sign it, and for the bank to receive it back. Some banks will let you start using the account before the card arrives, but others will not. If the bank requires a video call, you can usually schedule one within 24 hours, and the call takes 10 to 15 minutes.
The state verification step is the wildcard. If your LLC or corporation is already registered and the state's records are up to date, the bank can verify it in minutes. If you just registered your business, the state may take one to three business days to post your registration online, and the bank will wait for that before they open your account. You can speed this up by checking your state's Secretary of State website to confirm your registration is live before you apply to the bank.
Initial deposit requirements and account minimums
Most banks require an initial deposit to open the account, but the amount varies. Many online banks have no minimum deposit. Traditional banks often ask for $100 to $500. Some business checking accounts waive the deposit if you set up direct deposit or maintain a certain balance.
You can fund the account with a transfer from your personal bank account, a wire transfer, or a check deposit. If you use a transfer from your personal account, it usually takes one to three business days to clear. Wire transfers are faster — usually same day — but some banks charge a fee ($15 to $30). Check deposits can take three to five business days.
Do not worry if you do not have the deposit ready on day one. Most banks will open your account and let you fund it within a few days. Read the terms carefully, though — some banks close accounts that remain unfunded for more than 30 days.
What happens if the bank asks for more information
Sometimes the bank's background check flags something and they ask for additional documents. This might be a recent address change, a name mismatch between your ID and your business registration, or a question about the source of your funds. When this happens, the bank will email you a list of what they need and a deadline — usually five to ten business days.
Common requests include a recent utility bill if your address is new, a letter from your landlord if you are renting commercial space, or a bank statement showing the source of your initial deposit. If you are a non-citizen, the bank may ask for your visa, green card, or passport. If you have a criminal record, the bank may ask for details or documentation about the offense.
If the bank denies your application, they will tell you why in writing. Common reasons are an unresolved background check issue, a mismatch between your personal ID and your business registration, or a policy against accounts for certain business types. If you are denied, you can ask the bank to reconsider, or you can try a different bank. Some banks are stricter than others about background checks and business types.
Choosing between online banks and traditional banks
Online banks (Novo, Square Cash, Mercury, Brex) open accounts faster — usually one business day — and have lower or no minimum deposits. They also tend to have lower monthly fees. The trade-off is that they offer fewer services: no physical branches, limited check deposit options, and sometimes no business credit card. They work well if you mostly send invoices and receive payments digitally.
Traditional banks (Chase, Bank of America, Wells Fargo, local credit unions) take longer to open an account but offer more services: physical branches where you can deposit checks, business credit cards, merchant services, and lending products. They are better if you need to deposit checks regularly or want access to a loan officer. Credit unions often have lower fees and more personalized service, but they may have stricter membership requirements.
A practical approach is to start with an online bank for speed and simplicity, then add a traditional bank account later if you need check deposits or other services. You can have multiple business accounts at different banks.
Frequently Asked Questions
Can I use my personal bank account for my business instead?
Legally, yes, but it is risky. Mixing personal and business money can weaken your legal protection if someone sues your business. For tax purposes, the IRS expects you to keep business and personal finances separate. A business account makes tax time simpler and shows the IRS you take your business seriously.
Do I need an EIN if I am a sole proprietor?
No. As a sole proprietor, you can use your Social Security number instead. However, getting an EIN is free and takes 15 minutes online at irs.gov. An EIN keeps your personal Social Security number private and makes it easier to hire employees or open a business credit card later.
What if my business is not registered with the state yet?
Register it first. Most banks will not open an account for an unregistered LLC or corporation. Registration takes 10 to 30 minutes online through your state's Secretary of State website and costs $50 to $300 depending on your state. Once you register, wait one to three business days for the state to post your registration online before you apply to the bank.
Can I open a business account if I have bad credit?
Yes. Banks do not usually check your personal credit score for a business checking account. They do run a background check and may check ChexSystems, which is a banking history database. If you have been denied a bank account before, some banks will still work with you, but you may face higher fees or a longer verification process.
How do I know if my application was approved?
The bank will send you an email with your account number and routing number once your account is open. If you do not hear back within the timeframe the bank quoted, log into your online banking portal or call the bank's business support line to check the status. Do not assume silence means approval — follow up if you are unsure.